Delhi HC orders MTNL to deposit Rs 442 cr in connection with arbitral award

For 30 years, a dispute between Mahanagar Telephone Nigam Ltd (MTNL) and CanBank Financial Services Limited (CanFina) was going through several rounds of litigation, which is in stark contrast to the apex court push for expeditious disposal of arbitration matters.

MTNL had alleged fraud at play on the part of CanFina, a subsidiary of Canara Bank. Recently, the Delhi High Court stayed the arbitral award ordering MTNL to refund an amount of Rs 160 crore along with interest amounting to Rs 282.69 crore to CanFina subject to a condition that MTNL should deposit the entire award amount along with interest in a fixed deposit. The total amount effectively runs to around Rs 442.69 crore.