Delhi HC issues notice to IGNOU for not renewing Rs 2.25 cr bank guarantee in civil suit

New Delhi, Dec 15 : The Delhi High Court on Tuesday issued notice to Indira Gandhi National Open University (IGNOU) on a civil suit filed by Indo-Asian News Service : wherein IGNOUs bank guarantee for an amount of Rs 2,25,61,708 had expired on April 30, which has not been renewed so far.The matter came up for hearing before Joint Registrar (Judicial) Savitri.

The court noted that no counsel has appeared for IGNOU to argue the matter, and advocate Sandeep Grover appeared for IANS.

After a brief hearing, the court issued notice and fixed the matter for hearing on January 16.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 in the first two years.Yet, the 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 in the years 2012 and 2013.In March 2019, the Delhi High Court held that there was no doubt that IANS had set up IGNOUs website.

IANS relied upon the RTI reply wherein it was acknowledged that out of the 15 bills raised, Rs 2,25,61,708/- was yet to be paid by IGNOU.The High Court had directed IGNOU to furnish 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.On October 22, it was brought to the attention of Joint Registrar (Judicial), on the basis of an office noting that the bank guarantee furnished by IGNOU had expired on April 30, and it has not been renewed or extended by IGNOU.

After noting that no counsel appeared on behalf of IGNOU, the Joint Registrar issued notice to IGNOU to explain the reason(s) for non-compliance of the court orders.Then, the matter was slated for hearing on December 15.In February, this year during the pendency of this suit, the matter was referred to the Delhi High Court Mediation and Conciliation Centre for an amicable settlement.However, despite giving its consent, IGNOU has not been able to appear before the mediator.