ICC International Court of Arbitration Orders VSNL to provide access to FLAG

With reference to the earlier announcement dated May 26, 2006 regarding the receipt of the ruling of the International Chamber of Commerce (ICC) Arbitration Tribunal on issues of legal liability and non monetary relief relating to its dispute with FLAG Telecom Group Ltd (FLAG) regarding the interpretation of the Construction and Maintenance Agreement (C&MA) governing the FLAG Europe-Asia (FEA) cable system to which Flag and the Company, and various other parties, are Signatories, Videsh Sanchar Nigam Ltd (VSNL) has announced that the Tribunal by majority award ordered the Company to grant FLAG access to the Mumbai cable landing station of the FEA cable system for the purposes of installation, inspection, testing, training and other functions so as to equip capacity of the FEA cable system to any level.

The Company was, and remains, disappointed that the Tribunal decided by a 2:1 majority to reject what the Company (and, the Company believes, many other Signatories) had understood to be the effect to the C&MA. The Company has yesterday filed a Writ in The Netherlands to seek to set aside the award.

Notwithstanding the Company´s application, the Company will continue to comply with the terms of the award, as issued, until such time as it may be set aside.

Source : Equity Bulls

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