HC declines to stay Broadcasting Ministry order

The Madras High Court today declined to stay operation of the I & B Ministry order cancelling Sun Group-owned Kal Cables Private Limited permanent registration to operate as MSO under Digital Addressable System but partly stayed a clause directing it to wind up its activity within 15 days from receipt of its letter and inform subscribers by running a scroll.
The company had filed petitions challenging cancellation of its permanent registration here and Coimbatore. Both the petitions came up yesterday which was adjourned to today.
Justice V.Ramasubramanyam partly stayed a clause in the order instructing it to wind up its activity within 15 days from receipt of the Information and Broadcasting Ministry's letter and also immediately inform subscribers about it by running a scroll. It had also asked the petitioner to send the copy of the same to the I&B Ministry.

The firm sought quashing an August 20 order issued by the I&B Ministry and an interim stay on further proceedings on operation of the impugned order. It also sought a direction to restrain authorities from making any press statement or issuing a notification or an 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 I&B Ministry 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 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 10 years with effect from September 30, 2006.

The I&B Ministry by its August 20 letter cancelled the permanent registration with immediate effect citing that the Home Ministry had denied security clearance to them. It further instructed it to wind up its activity within 15 days from receipt of the letter and immediately inform subscribers about it by running a scroll and sending a copy to the I&B Ministry.

The order was served through an e-mail only on August 26. Challenging this, the petitioner contended that cancellation was made without providing an opportunity which was against principles of natural justice and sought a stay on the order.
The petitioner said if the scroll was displayed, all its 1.60 lakh subscribers will shift to other operators and if the plea was allowed, the firm will not be able to get the subscribers back.