Cancellation of MSO registration: Sun group firm moves HC

Sun Group-owned Kal Cables Private Limited has moved the Madras High Court challenging cancellation of its permanent registration to operate as Multi-System Operator under Digital Addressable System here and Coimbatore by the central government.
When two separate petitions filed by the company -- one each in respect of Chennai and Coimbatore -- came up for hearing today, Justice V Ramasubramanyan adjourned the matter till tomorrow.
The petitioner prayed for quashing an August 20 order issued by the Ministry of Information and Broadcasting and an interim stay on all further proceedings on operation of the impugned order.
It also sought for a direction from the court to restrain authorities from making any press statement or notification or intimation in any manner to that effect.

According to Kal Cables Managing Director Vittal Sampathkumaran, the company was granted provisional permission on September 30, 2006 by the Ministry of Information and Broadcasting to operate as MSO subject to security clearance by the Home Ministry and subject to adherence and compliance of the terms and conditions stipulated in the said permission.
Subsequently after the Centre amended the Cable Television Network Rules 1994 with effect from April 28, 2012, the company made an application according to new rules and was granted permission for a period of 10 years with effect from September 30, 2006.

While so, the I&B Ministry by its letter dated August 20 cancelled the permanent registration with immediate effect citing reasons that the Ministry of Home Affairs had denied security clearance to them.

It further instructed it to wind up its activity within 15 days from receipt of the letter and also immediately inform the consumers about it by running a scroll and sending the copy of the same to the I&B Ministry.
The order was served through an e-mail only yesterday. Challenging this, the petitioner contended that the cancellation was made without providing an opportunity which was against the principles of natural justice. The act of the authorities has virtually robbed the petitioner of its business they contended.
"It is against the right to carry on any occupation guaranteed under the Indian Constitution," the petitioner said.

Seeking a stay on the order, the petitioner said if the scroll was displayed according to the I&B Ministry, all its 1.60 lakh subscribers will shift to other operators and if the petition was allowed, the company will not be able to get the subscribers back.