Justice SK Mahajan also directed the two companies to pay 20 per cent of their licence fee dues including interest by March 30, 1999, and keep their existing bank guarantees alive.

DoT has already issued letters to the banks concerned for encashment of bank guarantees of the two petitioner companies but money has not yet been remitted to the department.

Reliance Telecom, basic service provider in the Gujarat circle, has total dues of Rs 103 crore and 20 per cent works out to Rs 20.60 crore.

On Monday, the company submitted a cheque worth Rs 19.52 crore dated March 30. It needs to pay approximately Rs 1 crore more to DoT within four days.

Modicom, cellular service provider in Punjab and Karnataka, has total dues of Rs 241 crore, 20 per cent of which stands at Rs 52.75 crore.

In case of default by thesecompanies, the department would be free to encash the bank guarantees of the two companies.

The court also issued notices to DoT and asked it to file replies within 10 days and posted the case for further hearing on April 12.