BackTDSAT can’t admit petitions challenging Trai rules: SC
The court says the powers laid down in the Trai Act do not give TDSAT jurisdiction to sit on judgement on the rules set by the telecom regulator
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New Delhi: The Supreme Court said that the country’s telecom tribunal cannot admit petitions challenging the rules laid down by the industry regulator, ending judicial proceedings at the Telecom Disputes Settlement Appellate Tribunal (TDSAT) that were initiated by telecom companies and broadcasters.
A three-judge bench of the apex court, headed by G.S. Singhvi, said on 6 December that the powers laid down in the Telecom Regulatory Authority of India Act, 1997 (Trai Act) do not give Telecom Disputes Settlement and Appellate Tribunal (TDSAT) jurisdiction to sit on judgement on the rules set by the telecom regulator.
The law allows the regulator to frame appropriate regulations, make recommendations on specific areas and perform certain functions, according to the 134-page judgement.
The term regulate denotes that “for facilitating arrangement amongst service providers for sharing their revenue derived from providing telecommunication services, Trai can either issue directions or make regulations". The only limitation on Trai’s power is that “the regulations must be consistent with the Act and the Rules made thereunder" and that “there is no other restriction on the power of the Authority to make regulation.
The judgement says that the relevant section “confers jurisdiction upon TDSAT to adjudicate any dispute between a licensor and licensee, between two or more service providers and between a service provider and a group of consumers". It has also clarified the forum for those aggrieved by Trai’s regulations by saying that they “shall be free to challenge the validity of the regulations framed under Section 36 of the Act by filing appropriate petition before the High Court".
Commenting on the decision, a legal adviser with a private television channel said: “The long and short of the Supreme Court order is that the Trai rules cannot be adjudicated by TDSAT as both the bodies arise from the same statute. What the order says is that Trai regulation can be challenged in the high court."
The executive declined to be named.
This applies to the regulations related to telecom as well as media.
For instance, the 12 minute advertising cap rule, which was being challenged by broadcasters, is likely to move to high courts now.
TDSAT had heard the arguments and reserved its judgement. It is a possibility that TDSAT will now attach a copy of the top court order and ask NBA to take the matter to HC. The impact of the decision is likely to be negative, say industry experts.
Such a restriction will delay adjudication of matters as high courts are heavily burdened by pending matters.
In TDSAT, the matters were heard by and large within a month. Also, judges presiding at TDSAT develop certain expertise on the subject, given their engagement with such matters, point out experts.
Such a specialization is unlikely in other fora. Outlining the purpose for establishing Trai, the judgement notes that the regulator has to “ensure that the interest of consumers are protected and, at the same time, create a climate for growth of telecommunications, broadcasting and cable services in such a manner which could enable India to play leading role in the emerging global information society."
While delay might be a concern, the decision brings clarity within the sector, said advocate Apar Gupta, partner, Advani and Co.
“There will be much more clarity with respect to the jurisdiction of the TDSAT whereby it will only interpret the Trai regulations but challenges to these regulations will go to the High court directly," said Gupta.
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