VidhiSangh

Supreme Court of India · 22/09/2022

BHARAT SANCHAR NIGAM LTD. AND OTHERS ETC versus M/S TATA COMMUNICATIONS LTD. ETC.

[2022] 18 S.C.R. 143 · 2022 INSC 996

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Summary

Under the interconnect agreements, BSNL charges telecom licensees for infrastructure at its exchanges, such as building space, power and towers, at rates it prescribes, payable upfront every year. After the Government reclassified cities for House Rent Allowance in 2008, BSNL's circular of 12 June 2012 revised the charges with effect from 1 April 2009, with a 10% annual increase from 2010, and raised additional bills for past years already paid. TDSAT upheld BSNL's right to revise but made the circular operative only from 1 April 2013, without any notional increase for the intervening years. The Supreme Court agreed that an administrative circular cannot operate retrospectively. But because BSNL's competence to fix the rates was unchallenged, it could levy from 1 April 2013 rates notionally increased at 10% a year from the 2009 base. The appeals were partly allowed.

Issues

  1. Whether BSNL's circular of 12 June 2012 revising infrastructure charges could operate retrospectively from 1 April 2009 where charges had already been paid upfront
  2. Whether, on the circular applying from 1 April 2013, BSNL could levy rates notionally increased by 10% a year from 1 April 2009

Held

Result

Appeals partly allowed. TDSAT's orders of 20 August 2014 and 14 October 2014 were modified to let BSNL raise additional bills from 1 April 2013 on the notionally increased rates. Non-payment attracts the consequences under the agreements.

Judgment PDF: Supreme Court of India, [2022] 18 S.C.R. 143.