Home >Companies >News >Delhi HC stays DOT order levying Rs290 crore penalty on AT&T Global over unpaid fees
Delhi HC questioned the validity of imposing penalty on a company which had not been issued a notice or given a chance to be heard in the first place. Photo: Pradeep Gaur/Mint
Delhi HC questioned the validity of imposing penalty on a company which had not been issued a notice or given a chance to be heard in the first place. Photo: Pradeep Gaur/Mint

Delhi HC stays DOT order levying Rs290 crore penalty on AT&T Global over unpaid fees

The Department of Telecommunication (DoT) passed an order on 5 April imposing the penalty for unpaid license fee on AT & T Global Network Services India

New Delhi: The Delhi high court on Friday stayed an order imposing a penalty of Rs290 crore on AT&T Global Network Services India Pvt. Ltd for unpaid licence fees between 2002-2005 by its affiliate AT & T Communication Services India Pvt. Ltd.

Both AT&T Global Network Services and AT&T Communication Services India are subsidiaries of AT&T Global Network Holdings LLC.

Based on a show cause notice issued to AT & T Communication Services India Pvt. Ltd in August 2005, the Department of Telecommunication (DoT) passed an order on 5 April imposing the penalty for unpaid license fee on AT & T Global Network Services India.

Justice Sanjeev Sachdeva questioned the validity of imposing penalty on a company which had not been issued a notice or given a chance to be heard in the first place.

Rajiv Nayyar, counsel for AT & T, told the court that AT & T Global Network Services was incorporated in 2005 and could not be penalized for breaches committed earlier.

He added that AT&T Communication Services India had been involved in the proceedings from the very beginning, and yet the demand was levied on AT&T Global Network Services, which had not been a party to the dispute.

Nayyar told the court that the 5 April order was “cryptic, bad in law, arbitrary and against the principles of natural justice" and was passed by a committee comprising members who were different from those who had heard the entire issue.

AT & T Global Network Services sought for the order to be set aside and contended that the although it belonged to the AT & T group, it was economically and operationally independent from AT&T Communication Services India.

The matter will be heard next on 19 May.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
My Reads Redeem a Gift Card Logout