Mumbai: In a significant order, the Mumbai High Court has directed US telecommunication giant Motorola Inc to deposit with the prothonotory of the court $ 120.49 million (approximately Rs 550 crore) claimed by Iridium India Telecom Ltd, a consortium of Indian financial institutions.

The order was delivered recently by Justice H L Gokhale and Justice R S Mohite on a notice of motion taken out by Iridium India Telecom Ltd in a suit filed against Motorola claiming refund of $ 90 million investment made by them along with $ 30 million interest in a project that failed.

The Division Bench also set aside the order of Justice Sharad Bobade delivered on August 8, 2003, refusing to grant interim relief to Iridium India Telecom Ltd.

The Division Bench also ordered the prothonotory to keep in fixed deposits with State Bank of India the amount deposited by Motorola for 30 months initially and then keep on extending the period as and when required.

Motorola asked for a 12-week stay on the High Court order. The matter will be heard on May 5 on the point of granting stay. Motorola's counsel Aspi Chinoy said he would produce documents in support of the stay.

Iridium India, comprising IDBI, ICICI, HDFC and IL&FS alleged that Motorola had procured in 1992 investments from them based on fraud and misrepresentation. It also alleged that Motorola had concealed vital information from them which led to failure of the project "Iridium System".