Mahanagar Telephone Nigam Ltd.'s share price surged as much as 14% on Thursday to hit highest in three months, even as the company said it cannot pay the eighth semi annual interest for the 6.85% MTNL Bond Series VI due on Dec. 21.The interest cannot be paid due to insufficient funds, according to an exchange filing.As per the structured payment mechanism of Tri-Partite Agreement signed among MTNL, Department of Telecommunications, Ministry of Communications, Government of India and Beacon Trusteeship Limited, MTNL has to fund the Semi-Annual Interest into the escrow account with adequate amount, 10 days before the due date.In case of any default made by MTNL in payment of principal and interest on the bonds issued by it, a sovereign guarantee will be invoked by the debenture trustee and the Government of India is obliged to make the payment to MTNL for the same, the filing said. Brainbees' Share Price Gains Following Kotak Securities 'Add' InitiationMTNL Share Price TodayShares of MTNL rose as much as 13.7% to Rs 61.87 apiece, the highest level since Aug. 30. It pared gains to trade 9.4% higher at Rs 59.54 apiece, as of 11:24 a.m., compared to a 0.2% decline in the NSE Nifty 50.The stock has risen 76.46% on a year-to-date basis. Total traded volume so far in the day stood at 13 times its 30-day average. The relative strength index was at 69.5. Stock Market Live: Nifty, Sensex In Narrow Range; RIL, L&T Share Prices Drag