VSNL Receives Communication from FLAG Telecom Group regarding arbitration tribunal order

Videsh Sanchar Nigam Ltd (VSNL) has announced that the Company is in receipt of a communication from FLAG Telecom Group Ltd. (FLAG) to an Arbitration Tribunal of the International Chamber of Commerce (ICC) seeking monetary relief of about $406 million plus interest in the Arbitration relating to its dispute with FLAG regarding the interpretation of the Construction and Maintenance Agreement (C&MA) governing the FLAG Europe-Asia (FEA) cable system. The ICC Tribunal had by a Partial Award by a 2:1 majority, ordered the Company, in May 2006, 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 is studying FLAG's claim and will file its response with the Tribunal in due course as per the schedule finalized by the Tribunal.

Further the Company has informed that, as informed earlier, the Company has filed a Writ in the Netherlands to seek to set aside the said Partial Award.

Source : Equity Bulls

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