The Bombay High Court has ordered Punjab National Bank to release payment of dues to Etisalat DB Telecom. The dues amounting Rs. 148.36 crore are on account of the fixed deposits the company kept with the bank. An additional amount would be paid because of premature cancellation of fixed deposits receipt.
"The Company shall be at liberty to take out appropriate proceedings to challenge the adjustment of around Rs. 254 crore by PNB. All the rights and contentions of the Parties in this regard are kept open," mentioned Justice SJ Kathawala in his order.
Etisalat had moved to court in March for liquidation. The Indian partner of the firm DB Realty had been opposing the move and arguing the company can still continue and wants to run operations.
The court also issued the orders to company to release the costs for renewal of bank guarantee amounting to Rs. 55,880.
The HC also directed DoT, MTNL, BSNL and taxation authorities to invoke any bank guarantee by 13 June 2012.