VSNL moves Dutch court against ICC tribunal ruling in dispute with Flag
08 Sep 2006
Mumbai: Videsh Sanchar Nigam Ltd (VSNL) has moved a court in Holland seeking to set aside the International Chambers of Commerce (ICC) arbitration tribunal's order directing it to provide landing station access in Mumbai to rival telecom cable system Flag.
The ICC tribunal by a majority award had ordered VSNL to grant Flag Europe-Asia (FEA) cable system access to its Mumbai cable landing station, for installation, inspection, testing, training and other functions so as to equip capacity of the FEA cable system to any level.
FEA, owned by a Reliance Communications, an Anil Ambani group firm, has accused VSNL of not honouring an earlier award of the tribunal and moved the tribunal again in August, seeking a timetable for damages and determination of the reasonable and cost-based access charges".
Tata Group company, VSNL, had refuted the charges of Flag Telecom.
"We are disappointed by the non-monetary relief relating to its dispute with Flag Telecom Group Ltd and the interpretation of the construction and maintenance agreement (C&MA) governing the Flag Europe-Asia (FEA) cable system to which Flag and the company, and various other parties, are signatories," VSNL has informed BSE.
VSNL, however, said notwithstanding its application, it will continue to comply with the terms of the award until such time as it may be set aside.
