SC asks telcos to secure Rs 366 cr claim by BSNL

The Supreme Court today asked private telecom operators to give surety that they would pay BSNL's claim of Rs 366 crore if they lose the appeal in port charges case.

The court also said that it would examine whether the sectoral tribunal TDSAT has powers to alter and overrule the regulations framed by the Telecom Regulatory Authority of India (Trai) under delegated legislations.

Earlier, TDSAT had over-ruled sectoral regulator Trai's lowering the port charges or interconnection usage charge (IUC) to BSNL to Rs 39,000 from Rs 55,000.

A Bench headed by Chief Justice S H Kapadia directed the members of telecom lobby groups - COAI and AUSPI - to file affidavit before it, securing around Rs 366 crore in dues claimed by BSNL for the period between February, 2007 and May, 2010.

"You (operators) have to file an affidavit undertaking to secure the payment (BSNL's claim), in case you loose appeal," said the bench, which also comprised Justice K S Radhakrishnan and Swatanter Kumar.

Port charges are paid by the private telecom operator to BSNL to get interconnected to the PSU's network.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had set aside Trai's notification fixing the IUC at Rs 39,000 against Rs 55,000 charged by BSNL, which were in force since 2001.

The tribunal had also directed Trai to start afresh the process of fixing the port charges.

"Whether the delegated legislations can be ruled upon (by) TDSAT... We would have to decide. This question would reoccur and would come again and again," the bench said while observing that there were two other similar cases in which the issue regarding powers of TDSAT was in question.

Court's observation came after Attorney General Goolam E Vahanvati, appearing for Trai, submitted before the court that the tribunal has set aside the authority's regulation on the port charges. He said the order of TDSAT was not fair.

The court was hearing cross petitions filed by Cellular Operators Association (COAI) and Association of Unified Telecom Service Providers of India (AUSPI) and BSNL against each other challenging the orders of TDSAT on May 22, 2010.

Today Trai has also filed an appeal against TDSAT order.

Solicitor General Gopal Subramanium appearing for BSNL submitted that after the orders of TDSAT, the private telecom operators would have to pay Rs 55,000 per port to BSNL.

"Trai can not frame regulations, which would overpass the agreement between BSNL and private telecom operators, which had agreed to pay the PSU at RS 55,000," said Gopal.

On July 14, the court had directed BSNL to file an affidavit giving details of the amount it wants to recover from private telecom operators, on account of less port charges paid by them between February, 2007, and May, 2010.

The court had also asked BSNL not to disconnect private telecom operators.