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2020 Supreme(SC) 656

SUPREME COURT OF INDIA
S.A. BOBDE, CJI., A.S. BOPANNA, V. RAMASUBRAMANIAN, JJ.
Telecom Regulatory Authority of India – Appellant
Versus
M/s Bharti Airtel Limited And Others Etc. – Respondent
I.A. No. 46116 of 2020 in Civil Appeal Nos. 250-252 of 2019
Decided On : 06-11-2020

Advocates:
Advocate Appeared:
For the Appellant :Mr. Tushar Mehta, SG Ms. Maneesha Dhir, Advocate, Mr. Abhishek Kumar, Advocate, Mr. Saransh Gupta, Advocate, Mr. Ritesh Kumar, Advocate
For the Respondent:Mr. Ramji Srinivasan, Sr. Advocate, Mr. Ritin Rai, Sr. Advocate, Mr. K. R. Sasiprabhu, Advocate, Mr. Hiten Sampat, Advocate, Mr. Vishnu Sharma, Advocate, Ms. Kritika Bhardwaj, Advocate, Mr. Tushar Bhardwaj, Advocate, Mr. Shikhar Singh, Advocate, Mr. Meet Malhotra, Sr. Advocate, Mr. Anuj Berry, Advocate, Mr. Chaitanya Safaya, Advocate, Mr. Abhik Chakraborty, Advocate, Mr. S. S. Shroff, Advocate, Mr. Aspi Chinoy, Sr. Advocate, Mr. Gopal Jain, Sr. Advocate, Mr. Harsh Kaushik, Advocate, Mr. Abhay Chattopadhyay, Advocate

IMPORTANT POINT
Segmented Tariff Offers and discounts offered in ordinary course of business to existing customers without any discrimination within target segment, do not amount to a tariff plan and that there is no need for reporting.

Headnote:

Telecom Regulatory Authority of India Act, 1997 – Section 11(1)(b)(i) read with Section 11(2) – Segmented Tariff Offers – Challenge as to – Though jurisdiction and power of TRAI appears to have been questioned in one of appeals before TRAI, TDSAT has not recorded any categorical finding that TRAI had no jurisdiction and power to demand details of segmented offers – All that TDSAT found in impugned order is that segmented offers and discounts offered in ordinary course of business to existing customers without any discrimination within target segment, do not amount to a tariff plan and that there is no need for reporting – TDSAT eventually ordered remand of matter back to TRAI, for settling issue of segmented offers through open consultation process – If TRAI did not have any power to call for details regarding segmented offers and if it was a case of complete lack of jurisdiction, question of remanding matter back to Authority would not have arisen – Telecom Service Providers do not appear to be aggrieved by order of remand passed in respect of segmented offers – This is not a case of exercise by TRAI, of a power not at all vested in them in law – Impugned order dealt with several issues such as segmented offers, SMP, non-predation – Prayer for stay related to all issues and order of remand – Limited interim order at the time of admission of appeals, does not operate as a fetter for applicant to seek interim directions, limited to the extent of disclosure of details relating to only one of several issues – Interim directions now sought are confined to only one of several issues and what is sought in respect of that issue is also only a limited direction – I.A. allowed and direction is issued to respondents to disclose information/details sought by applicant/appellant regarding segmented offers – But it is duty and responsibility of TRAI to ensure that such information is kept confidential and is not made available to competitors or to any other person. (Paras 9, 11, 12, 14, 15 and 19)

Facts of the case:

Pending the appeals against the final order passed by Telecom Disputes Settlement and Appellate Tribunal (TDSAT), Telecom Regulatory Authority of India (TRAI), which is appellant in the appeals, has come up with this application for an interim direction to the respondents to disclose information/details sought by the appellant regarding segmented offers.

Findings of Court:

TSPs do not appear to be aggrieved by the order of remand passed in respect of segmented offers. At least we are not informed of the filing of any appeals by the TSPs against the impugned order. Therefore, this is not a case of exercise by TRAI, of a power not at all vested in them in law.

Result : I.A. allowed.

ORDER :

1. Pending the appeals against the final order passed by Telecom Disputes Settlement and Appellate Tribunal (hereinafter referred to as TDSAT), the Telecom Regulatory Authority of India (hereinafter referred to as 'TRAI'), which is the appellant in the appeals, has come up with this application for an interim direction to the respondents to disclose information/details sought by the appellant regarding segmented offers.

2. We have heard Mr. Tushar Mehta, learned Solicitor General for the applicant/appellant namely TRAI, Mr. Aspi Chinoy, learned senior counsel for respondent.

3. Sans unnecessary details, the circumstances leading to the present application can be summarised as follows:-

    (a) In exercise of powers conferred by Section 11(1)(b)(i) read with Section 11(2) of the Telecom Regulatory Authority of India Act, 1997 (hereinafter referred to as the 'Act'), TRAI issued an order namely the Telecommunication Tariff (63rdAmendment) Order, 2018 dated 16.02.2018;

    (b) Challenging the said Tariff Order, Bharti Airtel Limited, Idea Cellular Limited and Vodafone Mobile Services Limited, filed appeals in Telecom Appeal Nos. 1, 2 and 3 of 2018 before the TDSAT;

    (c) Primarily, the challenge was to the "Reporting Requirements" and "Significant Market Power" (for short SMP). Yet another grievance was about the insistence of TRAI about the disclosure of segmented discounts/ concessions;

    (d) Pending appeals before TDSAT, the Telecom Service Providers sought interim stay of the Tariff Order. TDSAT issued an interim arrangement on 24.04.2018 staying the relevant clauses relating to the Reporting Requirements and the definition of SMP. However, the Tribunal permitted TRAI to ask for details of segmented discounts/concessions for analysis. At the same time the service providers were exempted from disclosing the names of their customers and other sensitive information;

    (e) Challenging the interim arrangement so issued by TDSAT on 24.04.2018, TRAI filed writ petitions before the High Court of Delhi. By a judgment dated 04.05.2018, the writ petitions were dismissed, however with a request to the Tribunal to dispose of the appeals as expeditiously as possible;

    (f) Thereafter, TDSAT heard the appeals finally and allowed them partially by a final order dated 13.12.2018. By this order, TDSAT set aside the Telecom Tariff 63rd Amendment Order in so far as it changes the concepts of SMP, Non-predation and the related provisions;

    (g) It is against the said final order of TDSAT that TRAI has come up with the above Civil Appeals;

    (h) On 21.01.2019 the Appeals were admitted. However, on the prayer for stay, this Court recorded:-

    There will be no stay of the impugned judgment except to the extent of remand".

    (i) Thereafter the appellant namely TRAI has come up with this application in I.A.No.46116 of 2020 seeking an interim direction to the service providers to disclose information/ details sought by the appellant regarding the segmented offers.

4. On the basis of a chart filed as Annexure A-5 indicating the number of segmented offers provided by Telecom Service Providers (for short TSPs) during a period of 12 calendar months from January, 2019 to December, 2019 in various states, it is contended by the applicant - TRAI, that the details of these offers are not even disclosed to TRAI and that therefore, despite being a regulator, TRAI is not in a position to analyse whether the plans are transparent and non-discriminatory and whether predatory pricing is resorted to by TSPs in the garb of segmented offers or not. According to the applicant, they requested the TSPs to provide information relating to these offers, but the TSPs failed to disclose the information. It is the contention of the applicant that the TSPs are under a statutory obligation to offer tariffs in a transparent and non-discriminatory manner and to report all tariffs to the authority.

5. In response, it is contended by the TSPs that segmented offers, as found by TDSAT in the impugned order, constit


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