A Telecom Disputes Settlement and Appellate Tribunal (TDSAT)’s bench, headed by its chairman Justice S.B. Sinha has directed the Department of Telecommunications (DoT) not to invoke Allianz Infratech?s bank guarantee as the company has been merged with Etisalat DB Telecom.
TDSAT?s order came over a petition filed by Etisalat DB Telecom challenging the direction of the DoT to furnish a bank guarantee for the Bihar and Madhya Pradesh circles and seeking transfer of the licence issued in Allianz Infratech?s name to it after the merger. The company also said that it is ready to take all liabilities of Allianz Infratech.
On December 24, 2010, the DoT sent a letter to Etisalat DB directing it to furnish a bank guarantee in Allianz Infratech?s name. The bank guarantee issued by Allinaz to the DoT on February 25, 2009, was valid until February 24, 2011.
In another letter in January 2011, the DoT had said it planned to encash the previous bank guarantee, in case the company failed to provide a new one.
