Union of India Vs Sistema Shyam Teleservices Limited (Supreme Court of India)
The appeal arose from an order dated 10.05.2018 passed by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) in Telecommunication Petition No. 63 of 2016. The dispute centered on the interpretation of the Supreme Court’s earlier judgment dated 02.02.2012 in Centre for Public Interest Litigation v. Union of India, by which Unified Access Service licences and allotment of 2G Band Spectrum were declared illegal and quashed. The Court, however, made the direction operative after four months to prevent disruption of telecom services and directed fresh auction of the spectrum.
As the auction process was delayed, the Department of Telecommunications (DoT) sought extensions, and existing licensees were permitted to continue operations till 15.02.2013. By order dated 15.02.2013, the Court directed that licensees who continued operations after 02.02.2012, whether or not they participated in the auction, shall pay the reserve price fixed for the November 2012 auction.
The DoT issued show-cause and demand notices to the respondent seeking recovery of the reserve price with interest for the period from 02.02.2012 till cessation of operations. The respondent challenged these before TDSAT. The TDSAT held that liability to pay the reserve price commenced from 15.02.2013 (date of the Court’s order) and not from 02.02.2012. It further held that for the 8 circles where the respondent was successful in the March 2013 auction, liability ended on 30.04.2013 (date of Letter of Intent), and for the remaining 13 circles, on 23.03.2013 (date of discontinuation). TDSAT also held that interest would run only from 08.12.2014, being expiry of 21 days from the show-cause notice.
