HC directs Hutchison Essar-BPL to approach arbitration tribunal

Mumbai, Aug 10 (UNI) Bombay High Court today directed Hutchison Essar and BPL Mobile Communications (Mumbai circle) to approach the arbitration tribunal (AT) within 30 days in the case of their dispute over the share-purchase agreement.

Justice Nishita Mhatre also directed the AT to take up the matter within four weeks, after the recent termination of the Hutchinson Essar and BPL's joint venture on August one by BPL.

Passing an injunction order restraining Essar from selling its stakes in BPL to any third party, she said the same maybe verified when taken up by the AT.

Although Hutchison Essar's lawyer Iqbal Chagla had earlier contended that Rs 1,616 crore (97.5 per cent) of the consideration for the share-purchase agreement (SPA) had already been paid to BPL and a sum of about Rs 50 crore remained to be paid, BPL had offered to repay the 97.5 per cent.

But now the five day period for returning the recieved sum of the consideration will only begin after the AT vacated the order restraining Essar from selling the BPL's shares to a third party.

The court also asked both the parties to settle the matter between themselves, if possible, before the period of approaching the AT expires. However, neither party displayed an inkling towards the same.

Adv Chagla argued that the approval from the Department of Telecommunications (DOT) had already been applied for and if the application was not approved, it was Hutch's concern. But, the transfer of shares was not subject to the DOT approval.

However, BPL's lawyer Janak Dwarkadas contended that DOT's approval was a pre-requisite and had to be fulfilled before the transfer of shares, as per the agreement drawn for the joint venture.

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