RELIANCE INFOCOMM LIMITED Vs. BHARAT SANCHAR NIGAM LIMITED

JUDGEMENT

(1.) IN this case, the Petitioner is challenging the Circulars dated 12.6.2006 and 24.7.2007 issued by the Respondent - BSNL - claiming that these Circulars have the effect of unilaterally modifying certain clauses of the existing interconnect Agreements entered into between the two parties, prior to the date of the Circulars.

(2.) The case of the Petitioner is that, as Basic Service Operator, it had entered into an interconnect Agreement with the Respondent on 25.1.2002 for various Circles which Agreements cover various issues of interconnection including, inter alia, raising of bills on each other for interconnect usage charges and payments and process for reconciliation of any differences over bills. The grievance of the Petitioner is that the Respondent had, allegedly unilaterally, issued two Circulars dated 12.6.2006 and 24.7.2006 modifying, to the disadvantage of the Petitioner, the methodology for settlement of disputes in the event of differences in the amounts billed by the Respondent.

(3.) THE matter having come up for hearing on 30.4.2008, we have heard counsels for both the parties. THE learned senior counsel for Petitioner, Mr. J.J. Bhatt, argued that it is incorrect on the part of the Respondent to have amended the Agreement by way of Circulars. He drew our attention to the relevant clauses in the Agreements which were signed on 25.1.2002 and stated that these were in operation till suddenly the Respondent unilaterally modified the Clause 7.6 by replacing it with another clause by way of the Circular dated 12.6.2006. According to him, even if there is an understanding between the two parties regarding amendment to the method of resolution of disputes, it can only be incorporated in the Agreements to be signed thereafter but the Agreements already signed cannot be unilaterally amended by the Respondent by way of a Circular. If at all, it has at least to be in the form of an amendment to be signed by the two parties, which action too can only have prospective effect and not retrospective effect.