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2021 Supreme(Bom) 1820

A. A. SAYED, ANUJA PRABHUDESSAI
Film and Television Producers Guild of India Ltd. – Appellant
Versus
Union of India – Respondent


Advocates:
Advocate Appeared:
For the Petitioners: Harish Salve, Sai Krishna Rajagopal, Ruby Ahuja, Sidharth Chopra, Rustam N. Mulla, Harshad Gada, Aditya N. Raut, Sneha Jain, Utsav Trivedi, Shilpa Gupta, Swikriti Singhania, Ranjit Singh Sandhu, Utkarsha Maria, Krittika Sachdeva, Vasu Singh, Desai Desai Carrimjee.
For the Respondents: Tushar Mehta, Samsher Garud, Bijal Gandhi, Bhavika Deora, Pooja Yadav, Juhi Valia.

Judgement Key Points

Certainly. Based on the provided legal document, the following key points can be summarized:

  1. The challenge to the constitutional validity of section 11 of the TRAI Act, 1997, as it relates to broadcasting services, has been rejected. The court found that section 11(2) empowers the authority to fix rates and regulate telecommunication services, including broadcasting, in the public interest (!) .

  2. The challenge to the principal 2017 Regulations and Tariff Order, as well as the 2020 Amendments, was largely dismissed. The court upheld that these regulations and orders are within the powers conferred by the TRAI Act and are aimed at ensuring a level playing field, promoting competition, and protecting consumer interests (!) .

  3. The court emphasized that airwaves are public property and their regulation is necessary to prevent monopolization and ensure public interest. This distinction from print media is well-recognized, and restrictions on broadcasting are permissible under the constitutional framework, provided they are reasonable and in the interest of society (!) (!) .

  4. The court reiterated that the regulations and tariffs are the result of extensive consultation, transparency, and application of the authority’s expertise. The process involved stakeholder comments, consultation papers, workshops, and rational decision-making, which supports their reasonableness and validity (!) (!) .

  5. The specific provisions challenged, such as restrictions on bouquet formation, price caps, and discount limits, were found to be reasonable restrictions in the public interest. The court acknowledged that these measures aim to prevent manipulative practices, promote fair competition, and protect consumer rights (!) (!) (!) .

  6. The court clarified that the regulation of pricing and formation of bouquets by broadcasters and DPOs is within the regulatory powers of TRAI, especially given the scarcity and public ownership of airwaves. The restrictions imposed do not infringe on the fundamental rights under Articles 19(1)(a), 19(1)(g), or 21, as they are justified as reasonable and proportionate measures (!) .

  7. The court rejected the argument that Tariff Orders are merely administrative and do not constitute law, affirming that they are legislative in character and enjoy the presumption of constitutionality. They are subject to judicial review only on specific grounds such as arbitrariness or violation of constitutional provisions (!) (!) .

  8. The issue of transparency was highlighted, with the court emphasizing that the authority must ensure transparent processes, including stakeholder consultation and detailed reasoning for decisions. The absence of consultation on certain aspects, such as the second twin condition (Average Test), was deemed arbitrary and contrary to the statutory mandate (!) (!) .

  9. The court acknowledged that economic regulation involves complex, technical, and empirical judgments, and courts should exercise restraint, respecting the expertise and discretion of the regulatory authority. The scope of judicial review is limited to checking rationality, transparency, and adherence to procedural requirements (!) (!) .

  10. Overall, the court disposed of the petitions, affirming the validity of the regulations and amendments, with the exception of the specific arbitrary provision related to the second twin condition (Average Test), which was set aside for violating transparency requirements (!) .

These points encapsulate the court’s reasoning, emphasizing the balance between regulation in the public interest and fundamental rights, and underlining the importance of procedural fairness, transparency, and the expertise of regulatory authorities.


ORDER :

1. All the above nine Writ Petitions challenge the constitutional validity of the provisions of (i) the Telecommunication (Broadcasting and Cable) Services Interconnections (Addressable Systems) (Second Amendment) Regulations, 2020, (ii) Telecommunication (Broadcasting and Cable) Standard of Quality of Service and Consumer Protection (Addressable Systems) (Third Amendment) Regulations 2020 (hereinafter referred to as “2020 Regulations Amendments”) and (iii) the Telecommunication (Broadcasting and Cable) Services (Eighth) (Addressable Systems) Tariff (Second Amendment) Order, 2020 (hereinafter referred to as “2020 Tariff Order Amendment”) issued in exercise of powers under the Telecom Regulatory Authority of India Act, 1997 (hereinafter referred to as the TRAI Act). The impugned 2020 Regulations Amendments and impugned 2020 Tariff Order Amendment are hereinafter collectively referred to as the “impugned 2020 Amendments.”

1.1 Out of the nine Writ Petitions, five Writ Petitions, being Writ Petition (L) Nos.116, 124 to 127 of 2020 also challenge (i) the constitutional validit

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