VSNL files plea against FLAG in Netherlands

In a move that will further escalate the ongoing tussle between Videsh Sanchar Nigam Ltd and Reliance-controlled FLAG Telecom, the former has filed a writ appeal in the Netherlands.

VSNL is seeking to set aside a May 26 order by the International Chamber of Commerce's (ICC) arbitration tribunal giving FLAG  access to VSNL's Mumbai cable landing station.

"VSNL was, and remains, disappointed that the tribunal decided by a 2:1 majority to reject what VSNL had understood to be the effect of the construction and maintenance agreement. VSNL filed a writ appeal in the Netherlands yesterday seeking to set aside the order," the company said in a statement sent to the BSE.

However, VSNL has also stated that "notwithstanding the application, VSNL will continue to comply with the terms of the award, as issued, until such a time as it may be set aside".

FLAG Telecom had petitioned ICC in December 2004 seeking access to VSNL's landing stations. In May 2006, ICC by majority award ordered VSNL to grant FLAG access to its Mumbai landing station of the FLAG -Europe-Asia (FEA) cable system.

The access was 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 tribunal had given a 90-day deadline for the two parties to negotiate and arrive at a mutually acceptable landing station access charges.