In Brief
The Union of India granted a 10-year FM radio broadcasting licence to Millenium Delhi Broadcast LLP for Delhi and Chennai. When the licensee failed to operationalize the service within the agreed timeframe and later terminated the licence, the Government invoked a performance bank guarantee of Rs. 7.125 crores. The licensee challenged this in arbitration, and the Tribunal held the invocation illegal. The Supreme Court upheld the Tribunal's decision, ruling that since a Wireless Operational Licence (WOL) was never issued by the regulatory authority, the licence period never commenced and the conditions for bank guarantee encashment were not satisfied. The appeals were dismissed.
The lawyer headnote and full judgment text are available to registered users.