BHARTI AIRTEL LIMITED vs VIJAYKUMAR V. IYER

The Supreme Court addressed the legality of bank guarantees demanded by the Department of Telecommunications (DoT) from Aircel entities, which were challenged before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT). The Court upheld TDSAT's order that the DoT's demand for Rs.298 crores was untenable and directed the return of bank guarantees. The Court also ruled that the Airtel entities were entitled to cancel the bank guarantees and set off amounts owed by Aircel entities, affirming the principles of contractual obligations and the enforceability of TDSAT orders under the Telecom Regulatory Authority of India Act, 1997, Section 14. The appeals were disposed of in favor of the Airtel entities, confirming their rights under the agreements.