JUDGMENT

S.B. Sinha for himself and Shri P.K. Rastogi , Member

Introduction

Interpretation and/or application of Clause 7.3.1(iii) of the Interconnection Agreement entered into by and between the parties hereto on or about 1.11.2002 is in question in this petition.

The Petitioner’s case

Pursuant to or in furtherance of the said interconnection agreement, the parties hereto used to raise bills on each other for the purpose of providing connectivity to the customers of the other party through their respective POIs. Indisputably, the respondent herein used to set off and/or net its bills from the bills issued by the petitioner.

By reason of a letter dated 6.12.2004, petitioner stated as under:

“Dear Sir,

Please refer to your demand Note No.N-1457/16 dated 21^st May 2004 amounting to Rs.5,87,410 towards Cable Damage Charges.

Keeping in view our on going business relationships & to ensure that the customer gets the required services including the capability to call BSNL subscriber & vice versa, we under duress & protest agree that the said amount may be adjusted against the payables from your side. We would like to inform you that Rs.53.03 Lacs is outstanding from your side towards IUC invoices r