Trial in a N50million suit by a telecoms firm, Globacell Nigeria Ltd, against GSM service provider, Airtel Nigeria, will resume on May 11.

The case is before Justice Mufutau Olokoba of the Lagos State High Court, Tafawa Balewa Square.

Globacell asked the court to determine whether a subsisting contract between it and Celtel Nigeria Ltd (now Airtel Nigeria) empowers the GSM service provider to receive payment for recharge cards without supplying them to the claimant.

Globacell also wants the court to determine whether the contract empowers Airtel to unilaterally cancel the Ongoing Revenue Service Commission (ORSC) agreement between them without recourse to it.

The court is also to decide whether an affirmative answer to the issues will not thereby entitle Globacell to be granted judgment as per its writ of summons and statement of claim.

Airtel, on the other hand, wants the court to determine whether the subsisting agreement between it and Globacell as at May 27, 2008 was governed by a letter dated September 14, 2006 or a Distribution Agreement dated February 25, 2008.

It also wants the court to determine whether it reserves the right under the agreement to increase or reduce Globacell’s ORSC-backed credit facility, and whether Globacell is entitled to its claims.

Globacell had sought an order compelling Airtel to restore its existing ORSC-backed credit facility worth N3.8 million, which it alleged the GSM company cancelled illegally.

It also sought an order compelling Airtel to pay it N2.6 million, being daily earnings of N75,000 per day that it makes from sale of recharge cards, from May 27 till June 30, 2008, "and the same amount until judgment is delivered."

The court is also to order Airtel to pay interest of 25 per cent on the sum from May 27, last year until judgment is delivered, and thereafter at the rate of 30 per cent until it is liquidated.

Globacell urged the court to order the GSM company to pay it N50million as damages to cover the alleged trauma, embarrassment, loss of income and business opportunities suffered by its Managing Director, Mr Mark Davies, "as a result of the unilateral cancellation of the ORSC agreement by the defendant."

Besides, it wants a declaration that Airtel’s alleged refusal to release the stock of recharge cards it paid for amounts to a wrongful and illegal cancellation of the ORSC-backed credit facility "and, therefore, constitutes a breach of the agreement between parties."

Globacell claimed that Airtel granted it the ORSC facility of N1.1million in a September 14, 2006 Offer Letter, and that due to its excellent performance, the facility was increased to N2.3million on February 9, 2007.

Airtel, therefore, owed it the fiduciary duties of acting in good faith and acting in Globacell’s best interest, ensuring that the facility is not disrupted, stopped or cancelled without just or reasonable cause; that it supplies the claimant the cards it paid for, and that it is given "the mandatory 24 hours notice of the defendant’s intention to cancel the ORSC credit facility".