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Rediff.com  » Business » SC dismisses BSNL plea against cell phone cos

SC dismisses BSNL plea against cell phone cos

Source: PTI
May 14, 2008 19:35 IST
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The Supreme Court on Wednesday dismissed Bharat Sanchar Nigam Limited's appeals seeking to recover revised charges from BPL Mobile, Idea Cellular and others for the resources (infrastructure facilities) provided to them in their respective circles.

A bench headed by Justice S B Sinha while upholding the telecom tribunal judgement that came down heavily on BSNL for revising rates unilaterally said: "We do not find that these appeals raise any substantial question of law warranting interference. The appeals are dismissed accordingly."

BSNL had sought higher payment for minimum three years for the facilities provided to cell phone service providers -- BPL Mobile Cellular and Idea Cellular Ltd -- and email provider CG Faxemail (P) Ltd even if they had surrendered the right before the lapse of three years.

Justices S B Sinha, writing the verdict for the bench, said that 'prima facie, the proviso appended to Section 9 and Section 10 (the Indian Telegraph Act) providing for a minimum guaranteed period of three years does not appear to have any application. The authorities of DoT also did not think so.

They proceeded on the basis of and having regard to the phraseology used in Rules 478 and 496 that minimum period is only three months."

According to the court, the resources to be leased out were subject to agreement, terms of which were to be mutually agreed upon. 

"The respondents (service providers) at no point of time were made known either about the internal circulars or about the letters issued from time to time not only changing the tariff but also the basis thereof," it stated.

The bench further noticed "the vacillating stand taken by the appellants (BSNL)" in the case of CG Faxemail. "They sought to charge double the amount as prescribed in the contract on the basis that the service which is being provided by them is close user group service."
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