UNION OF INDIA AND ANR. versus ASSOCIATION OF UNIFIED TELECOM SERVICE PROVIDERS OF INDIA AND ORS.

Citation: [2011] 14 S.C.R. 657 · Decided: 11-10-2011 · Supreme Court of India · Bench: R.V. RAVEENDRAN · Disposal: Disposed off

Cited by 5 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

(2011] 14 (ADDL.) S.C.R. 657 
UNION OF INDIA AND ANR. 
v. 
ASSOCIATION OF UNIFIED TELECOM SERVICE 
PROVIDERS OF INDIA AND ORS. 
(Civil Appeal No. 5059 of 2007) 
OCTOBER 11, 2011 
[R.V. RAVEENDRAN AND A.K. PATNAIK, JJ.] 
Telecom Regulatory Authority of India Act, 1997: 
s. 14(a)(i) - Jurisdiction of Tribunal to decide the terms 
and conditions of license finalised by the Central Government 
and incorporated in the license agreement including the 
definition of Adjusted Gross Revenue - Held: Tribunal has 
A 
B 
c 
no jurisdiction to decide upon the validity of the terms and 0 
conditions incorporated in the license of a service provider, 
but it will have jurisdiction to decide "any" dispute between the 
licensor and the licensee on interpretation of the terms and 
conditions of the license - Once the licensee had accepted 
in the license agreement that the license fee would be a 
E 
percentage of gross revenue which would be the total revenue 
of the licensee company and had also accepted that the 
Government would take a final decision not only with regard 
to the percentage of revenue share but also the definition of 
revenue for this purpose, the licensee could not have 
approached the Tribunal questioning the validity of the 
definition of Adjusted Gross Revenue in license agreement 
F 
-
The incorporation of the definition of Adjusted Gross 
Revenue in the license agreement was part of the terms 
regarding payment which had been decided upon by the 
Central Government as a consideration for parting with its 
G 
rights of exclusive privilege in respect of telecommunication 
activities and having accepted the license and availed the 
exclusive privilege of the Central Government to carry on 
.657 
H 
658 
SUPREME COURT REPORTS (2011) 14 (ADDL.) S.C.R. 
A telecommunication activities, the licensees could not have 
approached the Tribunal for an alteration of the definition of 
Adjusted Gross Revenue in the license agreement - As the 
Central Government has already considered the fresh 
recommendations of the TRAI and has not accepted the 
B same and is not agreeable to alter the definition of Adjusted 
. Gross Revenue, the decision of the Central Government on 
the point was final under the first proviso apd the fifth proviso 
to s. 11 (1) of the Act - Telegraph Act, 1885. 
C 
s.11(1)(a)- Recommendations of the TRAI under- Held: 
TRAI has been conferred with the statutory power to make 
recommendations on the terms and conditions of the license 
to a service provider and the Central Government is bound 
to seek the recommendations of the TRAI on such terms and 
conditions at different stages, but the recommendations of the 
D TRAI are not binding on the Central Government and the final 
decision on the terms and conditions of a license to a service 
provider rested with the Central Government - If there is a 
difference between the TRAI and the Central Government with 
regard to a particular term or condition of a license, the 
E recommendations of the TRAI will not prevail and instead the 
decision of the Central Government will be final and binding. 
s.11(1)(b), (c), (d)- Recommendations of the TRAI under 
- Held: The functions of the TRAI under clause (b) of sub-
F section (1) of s.11 of the TRAI Act are not recommendatory. 
s.11(1)(a) and s.11(1)(b) -
Distinction between -
Discussed. 
s.14(a)(i) - Stage when dispute can be raised regarding 
G the computation of Adjusted Gross Revenue made by the 
licensor - Held: The dispute can be raised by the licensee, 
after the license agreement has been entered into and the 
appropriate stage when the dispute can be raised is when a 
particular demand is raised on the licensee by the licensor -
H When such a dispute is raised against a particular demand, 
UNION OF INDIA v. ASSOCIATION OF UNIFIED TELECOM 
659 
SERVICE PROVIDERS OF l~JDIA 
the Tribunal will have to go into the facts and materials on the 
A 
basis of which the demand is raised and decide whether the 
demand is in accordance with the license agreement and in 
particular the definition of Adjusted Gross Revenue in the 
license agreement and can also interpret the terms and 
conditions of the license agreement. 
B 
Appeal: Whether after dismissal of appeal of the Union 
of India against the order of the Tribunal by Supreme Court, 
Union of India could re-agitate the question decided in the 
order of Tribunal that the Adjusted Gross Revenue will include 
C 
only revenue arising from licensed activities and not re

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