SC asks TDSAT to reconsider its decision on call routing case

The Supreme Court today asked the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) to reconsider its decision regarding the compensation demanded from Reliance Communications (RCom) of Anil Ambani for allegedly showing international calls as local calls to make profit in 2004.

BSNL had appealed against the TDSAT order, which quashed its demand against Reliance. Allowing the appeal, the bench, headed by Chief Justice S H Kapadia, remitted the matter for reconsideration by the tribunal.

The technical question involved was whether Clause 6.4.6 of the Interconnect Agreement between Bharat Sanchar Nigam Ltd (BSNL) and Reliance Infocomm Ltd was penal or a pre-estimate of damages. The Supreme Court ruled that Clause 6.4.6 represented pre-estimate of reasonable compensation for the loss suffered by BSNL.

“The matter before the Supreme Court relates to the year 2004, prior to the re-organisation of the Reliance group, and an amount of Rs 9.14 crore claimed by BSNL under the interconnect agreement with Rcom. The Supreme Court has held that there is no penalty under the interconnect agreement, and only a pre-estimate of reasonable compensation to BSNL,” a spokesperson at RCom said.

“The Supreme Court has remanded the matter to TDSAT to decide the matter de novo in accordance with the interpretation laid down by it. RCom doesn't anticipate any material liability as a result of the judgment. The Supreme Court judgment will be applicable to the entire telecom industry, since all operators have interconnection agreements with BSNL having similar provisions.”