Back
Supreme Court Of India
S.B.SINHA,MARKANDEY KATJU
Hotel and Restaurant Association - Appellant
Versus
Star India - Respondent
Civil Appeal Nos. 2061 with 2247 of 2006
Decided On : 11/24/2006
Cable Television Networks - Regulation - 1995 Act, TRAI Act - Section 4-A, 2(1)(j), 2(1)(k) - The judgment discusses the applicability of the Cable Television Networks (Regulation) Act, 1995 and the Telecom Regulatory Authority of India Act, 1997 in a dispute between hotel associations and broadcasters regarding television services provided to hotels. The court analyzes the definitions of 'cable operator', 'cable service', 'cable television network', 'service provider', and 'telecommunication service' under the Acts. It interprets the legal provisions to determine the status of hotel associations as consumers and subscribers, and the applicability of tariff orders to commercial consumers. The court emphasizes the need for TRAI to independently exercise its jurisdiction under Section 11 of the TRAI Act to frame tariffs, without relying on the observations made by TDSAT.
Fact of the Case:
The appellants, members of hotel associations, were in a dispute with broadcasters over the increase in rates for television services provided to hotels. The appellants sought intervention from TRAI and TDSAT, claiming the rate increase was arbitrary and detrimental to the tourism industry. TDSAT dismissed the appellants' applications, opining that hotels are not consumers or subscribers under the 1995 Act and the tariff orders would not be applicable to them. The appellants appealed under Section 18 of the TRAI Act.
Finding of the Court:
The court found that the members of the hotel associations are consumers and subscribers, entitled to invoke the jurisdiction of TDSAT under Section 14 of the TRAI Act. It held that the tariff orders issued by TRAI are applicable to commercial consumers, rejecting TDSAT's opinion to the contrary. The court directed TRAI to independently exercise its jurisdiction to frame tariffs under Section 11 of the TRAI Act, without relying on TDSAT's observations.
Issues: The seminal issues were whether the hotel associations are consumers and entitled to invoke TDSAT's jurisdiction, and whether the tariff orders are applicable to commercial consumers.
Ratio Decidendi: The court held that the hotel associations are consumers and subscribers, rejecting TDSAT's opinion to the contrary. It emphasized the need for TRAI to independently exercise its jurisdiction to frame tariffs under Section 11 of the TRAI Act, without relying on TDSAT's observations.
Final Decision: The appeals were allowed, and the court directed TRAI to independently exercise its jurisdiction to frame tariffs under Section 11 of the TRAI Act, without relying on TDSAT's observations. The members of the hotel associations were entitled to prefer appeals against the tariffs framed by TRAI.
Judgement
S. B. SINHA, J.:- Appellants are members of Hotel Association of India and Hotel and Restaurant Owners Association (Western India), EIH Limited and Eastern International Hotels Ltd. The members of Hotel Association of India are owners of big hotels whereas the members of Hotel and Restaurant Owners Association (Western India) are owners of small hotels. They provide television services to their guests. Respondents herein are broadcasters or distributors. The television services provided for by the broadcasters to the actual consumers are carried through distribution of Cable or Multi System Operators (MSOs). Whereas ordinarily in the small hotels cable operators give signal to all the rooms wherefor separate charges are levied; the services provided in the big hotels are through an equipment installed for the said purpose known as Head End. The signals are received through satellites. They have contracts with the broadcasters directly.
2. The Parliament enacted the Cable Television Networks (Regulation) Act, 1995 (for short "the 1995 Act") to regulate the operation of cable television networks in the country and for matters connected therewith or incidental thereto.
3. "Cable operator", "cable service" and "cable television network" as defined in Section 2 of the 1995 Act read as under:
"(aa) "cable operator" means any person who provides cable service through a cable television network or otherwise controls or is responsible for the management and operation of a cable television network;
(b) "cable service" means the transmission by cables of programmes including re-transmission by cable of any broadcast television signals;
(c) "cable television network" means any system consisting of a set of closed transmission paths and associated signal generation, control and distribution equipment, designed to provide cable service for reception by multiple subscribers;"
4. Chapter II of the 1995 Act provides for cable television network to be operated only upon registration thereof. Section 4-A of the 1995 Act provides for transmission of programmes through addressable system. Some regulations in regard to the operation of cable operators are provided for in the 1995 Act. Sub-section (9) of Section 4-A which is relevant for our purpose reads as under:
"(9) Every cable operator shall submit a report to the Central Government in the prescribed form and manner containing the information regarding-
(i) the number of total subscribers;
(ii) subscription rates;
(iii) number of subscribers receiving programmes transmitted in basic service tier or particular programme or set of programmes transmitted on pay channel,
in respect of cable services provided by such cable operator through a cable television network, and such report shall be submitted periodically at such intervals as may be prescribed and shall also contain the rate of amount, if any, payable by the cable operator to any broadcaster."
5. In the year 1997, the Telecom Regulatory Authority of India Act, 1997 (for short "the TRAI Act") was enacted which came into force from 28th March, 1997. By reason of the TRAI Act, a Telecom Regulatory Authority of India (TRAI) and an Appellate Authority known as Telecom Disputes Settlement and Appellate Tribunal (TDSAT) were constituted.
6. "Service provider" and "telecommunication service" have been defined in Sections 2(1)(j) and 2(1)(k) of the TRAI Act in the following terms:
"(j) "service provider" means the Government as a service provider and includes a licensee;
(k) "telecommunication service" means service of any description (including electronic mail, voice mail, data services, audio tex services, video tex services, radio paging and cellular mobile telephone services) which is made available to users by means of any transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature, by wire, radio, visual or other electromagnetic means but shall not include broadcasting services:
Provided that the Central Go
AI
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
