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2007 Supreme(SC) 139

SUPREME COURT OF INDIA
H.K. Sema and B. Sudershan Reddy, JJ.
Telecom Regulatory Authority of India -Appellant
Vs.
Bharat Sanchar Nigam Limited -Respondent
Civil Appeals Nos. 3298, 3299, 4529, 6049 of 2005, 802, 2731, 2794, 3504 and 5172 of 2006
Decided On: 06.02.2007

The Telecom Regulatory Authority of India Act aims to ensure rapid development of telecommunications while protecting the interests of consumers and service providers.

Headnote:

Telecom Regulatory Authority of India Act - License Terms and Conditions - The court considered important questions of law regarding the inconsistency between license terms and conditions under the Indian Telegraph Act and the provisions of the Telecom Regulatory Authority of India Act, and the power of TRAI to fix interconnectivity terms and conditions for service providers. The court emphasized the purpose of the TRAI Act in ensuring rapid development of telecommunications while protecting the interests of consumers and service providers.

Fact of the Case:

The court considered important questions of law regarding the inconsistency between license terms and conditions under the Indian Telegraph Act and the provisions of the Telecom Regulatory Authority of India Act, and the power of TRAI to fix interconnectivity terms and conditions for service providers.

Finding of the Court:

The court found that the matter raised important questions of law of public importance and suggested consideration by a larger Bench. The appeal was delinked and notice for admission was issued.

Issues: The substantial questions of law of public importance included the inconsistency between license terms and conditions, the power of TRAI to fix interconnectivity terms and conditions for service providers, and the maintainability of the appeals in the present form.

Ratio Decidendi: The court emphasized the purpose and object of the TRAI Act in ensuring rapid development of telecommunications while protecting the interests of consumers and service providers. It also considered the harmonious construction of the amended provisions of the TRAI Act introduced w.e.f. 24-1-2000.

Final Decision: The appeal was delinked and notice for admission was issued.

ORDER

H.K. Sema and B. Sudershan Reddy, JJ.

1. In the midst of hearing of these appeals, important questions of law of public importance which will have far-reaching consequences have been brought to our notice. In view thereof, the parties suggested that the matter may be considered by a larger Bench. The substantial questions of law of public importance are:

1.1. Whether in the event of any inconsistency between the terms and conditions of the licences issued under Section 4 of the Indian Telegraph Act, 1885 and the provisions of the Telecom Regulatory Authority of India Act, 1997 ("the T.R.A.I. Act"), the provisions of the T.R.A.I. Act would prevail in view of the purpose and object for which the Act has been passed i.e. for ensuring rapid development of telecommunications in the country incorporating the most modem technology and at the same time protecting the interests of the consumers and the service providers.

1.2. Whether the Telecom Regulatory Authority of India has powers to fix the terms and conditions of inter connectivity between service providers, in respect of all the licences, irrespective of the fact whether licences issued before or after 24-1-2000 especially in view of the non obstinate clause in Sub-section (1) of Section 11 and Sub-clause (ii) of Clause (b) of Sub-section (1) of Section 11 of the T.R.A.I. (Amendment) Act of 2000?

1.3. Whether T.R.A.I. has no power to fix the terms and conditions of inter connectivity between service providers in respect of licences issued after 24-1-2000 including terms and conditions of interconnection agreements in view of, inter alia, the scheme laid down in the provisos to Section 11(1) of the T.R.A.I. Act, 1997 as amended on 24-1-2000 and if it does not have any such power what would be the harmonious construction of the amended Section 11(1) (&) (i) and the new scheme more specifically embodied in the provisos?

1.4. Whether under the amended provisions of the T.R.A.I. Act, 1997 introduced w.e.f. 24-1-2000 the harmonious construction of Section 11(1)(6)(ii) and the scheme of the provisos to Section 11(1) would allow T.R.A.I. to have the power to fix the terms and conditions of inter connectivity with respect to licences issued before 24-1-2000, only to the extent the licensor (Government of India) accepts the recommendations of T.R.A.I. for incorporation in new licences, so as to achieve level playing field between the service providers granted licences before and after the amendment of the T.R.A.I. Act?

1.5. Whether the appeals are maintainable in the present form?

The Registry shall place the matter before the Hon'ble the Chief Justice of India for passing necessary orders. The parties express that the matter needs urgent disposal.

C.A. No. 5172 of 2006

2. The appeal is delinked. Issue notice for admission. Mr. Sanjay Kapur, Advocate waives notice on behalf of the Respondent. The counter-affidavit to be filed within three weeks. The rejoinder-affidavit may be filed within two weeks thereafter. List thereafter.

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