Nature of the Event
The disclosure provides a status update on litigation previously disclosed to the exchanges, specifically concerning a demand notice from the Department of Telecommunications (DoT).
Details of the Proceeding
- Initial Demand: On August 24, 2020, the Department of Telecommunications (DoT) issued a demand notice for INR 8.56 Crores against Sterlite Technologies Limited. The demand alleged a violation of the terms of the company's IP-I Registration.
- Company Action: The company contested the demand.
- Arbitration: The dispute was adjudicated before Justice Kailash Gambhir (Retd.), the Sole Arbitrator.
- Arbitral Award Outcome: The company secured a favorable Arbitral Award dated May 17, 2023. The award quashed the entire INR 8.56 Crore demand raised by DoT.
- DoT Challenge: DoT challenged the Arbitral Award under Section 34 of the Arbitration and Conciliation Act, 1996 before the Hon'ble High Court of Delhi.
- Court Decision: The Hon'ble High Court of Delhi dismissed DoT's petition. This dismissal upheld the Arbitral Award in the company's favour.
Financial and Operational Impact
As explicitly stated in the disclosure, the outcome results in zero financial or operational exposure for the company.