Bombay High Court directs Etisalat DB to release payments to banks

MUMBAI: The Bombay high court has told Etisalat DB to release multiple payments including financial bank guarantees and penalties imposed by the department of telecommunication among others. It also directed state-run Punjab National Bank to pay Rs 148.36 crore and interest adjustment to the company on account of pre-mature cancellation of fixed deposit receipts.

Justice SJ Kathawala also stated in his order that, "The company shall be at liberty to take out appropriate proceedings to challenge the adjustment of around Rs 254 crore by PNB. All the rights and contentions of the parties in this regard are kept open."

Etisalat had moved the court on March 12 to 'wind-up' its Indian telecom operations and appoint a liquidator to oversee the process. The Indian partner of the joint venture, DB Realty is opposing the move by arguing that the company can still be viable and that it wants to run the operation.

In its order, passed on Monday, the court told the company to release costs for the renewal of financial bank guarantees of Rs 55,880.

The high court has also directed DoT, BSNL, MTNL and tax authorities not to invoke bank guarantee of any nature furnished by the company till June 13, 2012.