In Brief
The Union of India had encashed bank guarantees totalling ₹908.91 crores against admitted deferred spectrum payment liabilities of ₹774.25 crores from two telecom licensees. After the licensees furnished fresh guarantees for the correct liability and demanded refund of the ₹134.66 crores excess, the Union refused. The TDSAT ordered return of ₹104.34 crores. The Supreme Court dismissed the Union's appeal, holding that once fresh guarantees are furnished for the correct amount, the Union cannot retain excess encashed amounts. Subsequent defaults constitute separate causes of action and cannot justify withholding refunds. There is no legal basis for unjust enrichment.
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