Delhi HC directs IGNOU to appear on Jan 5 to settle Rs 2.25 cr dispute

New Delhi, Dec 22 (SocialNews.XYZ) The Delhi High Court on Tuesday directed the Indira Gandhi National Open University (IGNOU) to appear before it on January 5, for mediation to reach a settlement on the non-payment of Rs 2.25 crore to Indo-Asian News Service, pending for close to a decade.

Lawyers Sandeep Grover, Aditya Nayyar and Tarang Agarwal from the ORTIS Law offices represented IANS in the matter. IANS counsel contended before Justice Mukta Gupta that the application has been filed seeking a direction to IGNOU to appear before the mediator and cited that the Central university has failed to renew the bank guarantee which expired on April 30.

The IANS counsel submitted that IGNOU has not only violated the directions of the High Court but also blatantly breached the condition on which the conditional leave to defend was granted by the court in its March 6, 2019 order.

The IANS counsel also submitted that after filing of the application, a letter has been received from IGNOU's counsel clarifying that the bank guarantee has been extended for two years.

Citing the February 24, 2020 order, IANS counsel submitted that both parties were referred to the Delhi High Court Mediation and Conciliation Centre to explore the possibilities of settlement, if any. However, despite giving its consent, IGNOU has been regularly evading appearance before the mediator.

After a hearing in the matter, Justice Gupta directed IGNOU to appear before the mediation centre on January 5 through video conferencing.

On Monday, the High Court's Joint Registrar (Judicial) Vijay Shankar expressed displeasure over the non-appearance of IGNOU through video conferencing before the mediator.

Citing the non-appearance of IGNOU's counsel, the counsel for IANS argued that the Central university has been avoiding mediation proceedings through video conferencing, and despite many efforts, they have not responded so far.

Pointing to the flimsy grounds cited by the varsity for non-appearance, IANS counsel submitted that IGNOU's counsel, on the last date of hearing had expressed reservations about attending the mediation proceedings through video conferencing, contending that IGNOU is a government organisation and its officials are working on limited days and have limited Internet connectivity.

The IANS counsel argued that when all the courts -- including the Supreme Court, High Courts and District Courts -- as well as government offices are functioning virtually in these times, IGNOU's contentions appear strange.

The court said it is giving a last opportunity to IGNOU to appear before the mediator and come to a compromise with IANS, if any, and fixed the matter for further hearing on April 15, 2021.

In July 2009, IANS had entered into a media consultancy services project agreement with IGNOU. The IANS plea contended that on numerous occasions, IGNOU officials recorded their satisfaction with the services provided by it and no complaints were raised during the first two years. Yet, the due amount was not paid.

IANS had filed a civil suit against IGNOU seeking a decree for a sum of Rs 2,67,42,605 (inclusive of interest) against 15 invoices raised during 2012 and 2013.

In March 2019, the Delhi High Court held that there was no doubt that IANS had set up the IGNOU's website. IANS relied upon the RTI reply wherein it was acknowledged that of the 15 bills raised, Rs 2,25,61,708 was yet to be paid by IGNOU. The High Court had directed the IGNOU to furnish a bank guarantee to the tune of Rs 2,25,61,708 (being the principal amount) to be renewed from time to time.

After IGNOU furnished the bank guarantee, which was valid up to April 30, 2020, the summary suit filed by IANS was converted into a regular suit.

During the pendency of this matter, on February 24, 2020 upon joint request, the matter was referred to the Delhi High Court Mediation & Conciliation Centre for exploring the possibilities of an amicable settlement of the matter.

Source: IANS