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TOT Files Petition to Break Ruling

Posted on: Thursday, 27 April 2006, 12:00 CDT

By Komsan Tortermvasana, Bangkok Post, Thailand

Apr. 27--TOT Plc has officially asked the Administrative Court to overturn the arbitration ruling in January that ordered TOT to pay at least 10 billion baht in compensation to fixed-line operator True Corporation over an access-charge dispute.

In a petition to the court, TOT raised conflict of interest as a point, claiming the chairman of the arbitration panel Prasit Kowilaikul was a director in CP Alliance -- an insurance joint venture of CP Group and German-based Alliance.

It asked the court to overturn the arbitration ruling since CP Group was the parent firm of True.

However, True Corporation's chief executive officer Supachai Chearavanonot argued TOT's claim, saying that TOT was lying to the Administrative Court.

He said that the arbitration panel chairman had made clear at the eighth panel meeting in April 2004 that he was an independent director in CP Alliance and asked if True and TOT executives would object to his arbitration role.

No one objected, said Mr Supachai.

Mr Supachai also insisted that True executives did not know before that Mr Prasit was a director in CP Alliance until he declared at the arbitration meeting he was a nominee of Alliance in CP Alliance.

Mr Supachai said True had asked for confirmation from the German headquarters of Alliance on its nominee, which was received.

He said True did not want to seek a court order to enforce the arbitration payment, although the deadline had expired.

"We want to negotiate to find a favourable solution as business allies, not foes," he said.

He said that all businesses had to protect their interests, but TOT's attitude had made things difficult.

He said True was hopeful that the Administrative Court would not discriminate the case between state and private sectors.

In January, an arbitration panel announced that TOT was liable to pay damages of 9.175 billion baht, plus 7.5 percent interest to settle claims over access charges from True up to 2002.

TOT was also ordered to split revenue gained from the use of True's network equally from 2002 to the present.

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Copyright (c) 2006, Bangkok Post, Thailand

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Source: Bangkok Post

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