In Brief
Reliance Communication Limited sought recovery of excess spectrum security deposits and release of bank guarantees from the Union of India. The Union had accepted fresh bank guarantees for subsequent spectrum liability but retained the excess sums from original guarantees. The Union claimed default interest and arrears were outstanding. The Supreme Court held that the Union must refund excess deposits and release the original bank guarantees, as accepting fresh guarantees created an obligation to return the excess. The appeal was allowed in favour of the respondent.
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