{"id":106701,"date":"2007-08-23T00:00:00","date_gmt":"2007-08-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-tata-teleservices-maharashtra-on-23-august-2007"},"modified":"2018-02-19T10:29:32","modified_gmt":"2018-02-19T04:59:32","slug":"union-of-india-vs-tata-teleservices-maharashtra-on-23-august-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-tata-teleservices-maharashtra-on-23-august-2007","title":{"rendered":"Union Of India vs Tata Teleservices (Maharashtra) &#8230; on 23 August, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Union Of India vs Tata Teleservices (Maharashtra) &#8230; on 23 August, 2007<\/div>\n<div class=\"doc_author\">Author: P Balasubramanyan<\/div>\n<div class=\"doc_bench\">Bench: H.K. Sema, P.K. Balasubramanyan<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  1033 of 2004\n\nPETITIONER:\nUNION OF INDIA\n\nRESPONDENT:\nTATA TELESERVICES (MAHARASHTRA) LTD\n\nDATE OF JUDGMENT: 23\/08\/2007\n\nBENCH:\nH.K. SEMA &amp; P.K. BALASUBRAMANYAN\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T <\/p>\n<p>P.K. BALASUBRAMANYAN, J.\n<\/p>\n<p>1.\t\tThis appeal by the Union of India, the respondent in<br \/>\na proceeding before the Telecom Disputes Settlement &amp;<br \/>\nAppellate Tribunal (for short, the TDSAT) in a petition filed<br \/>\nby the respondent herein under Section 14 of the Telecom<br \/>\nRegulatory Authority of India Act, 1997 (for short the Act) is<br \/>\nunder Section 18 of the Act.  The respondent approached the<br \/>\nTDSAT  praying for a declaration that the action of the Union<br \/>\nof India in raising a claim and in recovering the amount as per<br \/>\nits demand dated 10.8.1999, was bad in law and be set aside,<br \/>\nfor a declaration that the set off made by invoking condition 19<br \/>\nof the licence the respondent had with the appellant in respect<br \/>\nof the Maharashtra Service Area was illegal and unauthorised<br \/>\nand for setting aside the same, for directing the appellant to<br \/>\nrefund an amount of Rs.50 crores together with interest from<br \/>\nthe date of the purported set off of that amount with the<br \/>\namounts due to the respondent till the date of refund and for<br \/>\nother consequential and incidental reliefs.  In answer, the<br \/>\nappellant contended that it was entitled to make the set off<br \/>\nand the set off made was authorised and legal and that there<br \/>\nis no reason to interfere with the set off and the respondent<br \/>\nwas not entitled to the recovery of Rs.50 crores with interest<br \/>\nthereon.  A claim that the appellant is entitled to recover as<br \/>\ndamages from the respondent a sum of Rs.654.25 crores<br \/>\ntowards the loss suffered by it on account of the respondent<br \/>\nherein failing to fulfil its obligations under the Letter of Intent<br \/>\nissued to it in respect of the Karnataka Telecom Circle was<br \/>\nalso put forward.  The TDSAT upheld the claim of the<br \/>\nrespondent, rejected the claim of the appellant that it was<br \/>\nentitled to a legal or equitable set off of the sum of Rs.50<br \/>\ncrores and more importantly held that it has no jurisdiction to<br \/>\nentertain a counter claim at the instance of the appellant.  Of<br \/>\ncourse, it was also pointed out that the counter claim itself<br \/>\nwas not properly framed and was somewhat vague.  Thus the<br \/>\nclaim of the respondent was accepted and a direction was<br \/>\nissued to the appellant to refund the sum of Rs.50 crores to<br \/>\nthe respondent with interest thereon at 17 per cent per annum<br \/>\nfrom the date the said amount was appropriated by the<br \/>\nappellant till its payment along with costs of the proceedings.<br \/>\nThis adjudication of the TDSAT is challenged in this appeal.\n<\/p>\n<p>2.\tSection 18 of the Act provides for an appeal to this<br \/>\nCourt from an order or decision of the TDSAT whether in<br \/>\nexercise of its appellate jurisdiction or in exercise of its original<br \/>\njurisdiction on one or more of the grounds specified in Section<br \/>\n100 of the Code of Civil Procedure.  The two substantial<br \/>\nquestions of law sought to be adjudicated on are (1) whether<br \/>\nthe TDSAT was justified in not accepting the plea of set off<br \/>\nraised by the appellant and (2) whether the TDSAT has not<br \/>\nfailed to exercise the jurisdiction vested in it by law in<br \/>\ndeclining to go into the merits of the counter claim made by<br \/>\nthe appellant and in rejecting the same as being not<br \/>\nmaintainable.\n<\/p>\n<p>3.\t\tThe question whether the plea of set off, whether<br \/>\nlegal or equitable is liable to be upheld might depend on our<br \/>\nconclusion on the question whether a counter claim at the<br \/>\ninstance of the Union of India in a proceeding initiated before<br \/>\nthe TDSAT  by a licensee or service provider, is maintainable.<br \/>\nIf we hold that the counter claim is maintainable, necessarily<br \/>\nthe same would have to be adjudicated on, on merits and the<br \/>\nresult of such an adjudication would have impact on the plea<br \/>\nof set off put forward by the appellant.  Of course, if our<br \/>\nanswer to the said question is that the counter claim is not<br \/>\nmaintainable, then we have to decide independently whether<br \/>\nthe finding entered by the TDSAT  on the plea of set off is<br \/>\nvitiated by a substantial error of law or not.  We will, therefore,<br \/>\nfirst tackle the question whether the counter claim made by<br \/>\nthe Union of India was maintainable.\n<\/p>\n<p>4.\t\tIt may be true that in the prayer portion in the<br \/>\nwritten statement an order or decree in terms of the counter<br \/>\nclaim had not been sought for by the appellant.  But the claim<br \/>\nas made in the written statement relates to the claim based on<br \/>\nthe failure of the respondent, after having conveyed its<br \/>\nacceptance of the Letter of Intent to provide service in the<br \/>\nKarnataka Telecom Circle and the damages allegedly suffered<br \/>\nby the appellant as a consequence and the entitlement of the<br \/>\nappellant to reimbursement of the specified sum from the<br \/>\nrespondent.  Even if there is some vagueness in the counter<br \/>\nclaim, as felt by the TDSAT, we think that the TDSAT might<br \/>\nhave directed the appellant before us, to make its counter<br \/>\nclaim more specific and in a proper manner.  After all, a defect<br \/>\nof deficiency could be permitted to be cured.   We are,<br \/>\ntherefore, not impressed by the argument on behalf of the<br \/>\nrespondent before us that the counter claim was rather vague<br \/>\nand the same was rightly rejected for that reason by the<br \/>\nTDSAT.   After all, this vagueness can be directed to be<br \/>\nremoved in the interests of justice, if it were to be held that the<br \/>\ncounter claim can be maintained by the Union of India.\n<\/p>\n<p>5.\t\tAccording to the TDSAT, Section 16 of the Act<br \/>\nprescribes the procedure and powers of the TDSAT.  No right<br \/>\nhas been given by that provision to the Union of India to make<br \/>\na counter claim in a petition filed by a petitioner before the<br \/>\nTDSAT seeking certain amounts as due from the Union of<br \/>\nIndia as the licensor.   The question is whether this restricted<br \/>\nview taken by the TDSAT is justified on the scheme of the Act.\n<\/p>\n<p>6.\tThe Objects and Reasons for enacting the Act and<br \/>\ncreating the TDSAT indicate that the TDSAT will consist of a<br \/>\nChairperson who has been a Judge of the Supreme Court of<br \/>\nIndia or a Chief Justice of a High Court, and two to four<br \/>\nmembers who have held the post of Secretary or Additional<br \/>\nSecretary to the Government of India or any equivalent post in<br \/>\nthe Central Government or the State Government for a<br \/>\nminimum period of three years.   The powers and functions of<br \/>\nthe Authority, as set out in the Objects and Reasons, include<br \/>\nsettlement of disputes between service providers.  The<br \/>\npreamble to the Act indicates that it is an Act to provide for<br \/>\nthe establishment of the TDSAT to regulate the<br \/>\ntelecommunication service, adjudicate disputes, dispose of<br \/>\nappeals and to protect the interests of service providers and<br \/>\nconsumers of the telecom sector, to promote and ensure<br \/>\norderly growth of the telecom sector and for matters connected<br \/>\ntherewith or incidental thereto.  The Act defines Licensee as<br \/>\nany person licensed under sub-section (1) of Section 4 of the<br \/>\nIndian Telegraph Act, 1885 (13 of 1885) for providing specified<br \/>\npublic telecommunication service.  It defines Licensor as<br \/>\nmeaning the Central Government or the telegraph authority<br \/>\nwho grants a licence under Section 4 of the Indian Telegraph<br \/>\nAct, 1885 (13 of 1885).  A service provider is defined as<br \/>\nmeaning, the Government as a service provider and it includes<br \/>\na licensee.  Section 14 of the Act deals with the establishment<br \/>\nof the TDSAT.  It appears to be appropriate to set down the<br \/>\nsaid Section hereunder:\n<\/p>\n<p>14.\tEstablishment of Appellate Tribunal<br \/>\nThe Central Government shall, by notification,<br \/>\nestablish an Appellate Tribunal to be known as<br \/>\nthe Telecom Disputes Settlement and Appellate<br \/>\nTribunal to\n<\/p>\n<p>(a)\t   adjudicate any dispute\n<\/p>\n<p> (i)  between a lincesor and a licensee;\n<\/p>\n<p>\t     (ii) between two or more service providers;\n<\/p>\n<p>(iii)between a service provider and a group of<br \/>\nconsumers:\n<\/p>\n<p>      Provided that nothing in this clause shall<br \/>\napply in respect of matters relating to <\/p>\n<p>(A)\t      the monopolistic trade practice, restrictive<br \/>\ntrade practice and unfair trade practice which<br \/>\nare subject to the jurisdiction of the<br \/>\nMonopolies and Restrictive Trade Practices<br \/>\nCommission established under sub-section (1)<br \/>\nof Section 5 of the Monopolies and Restrictive<br \/>\nTrade Practices Act, 1969 (54 of 1969);\n<\/p>\n<p>(B)\t    the complaint of an individual consumer<br \/>\nmaintainable before a Consumer Disputes<br \/>\nRedressal Forum or a Consumer Disputes<br \/>\nRedressal Commission or the National<br \/>\nConsumer Redressal Commission established<br \/>\nunder section 9 of the Consumer Protection<br \/>\nAct, 1986 (68 of 1986);\n<\/p>\n<p>(C)\t    dispute between telegraph authority and<br \/>\nany other person referred to in sub-section (1)<br \/>\nof section 7B of the Indian Telegraph Act, 1885<br \/>\n(13 of 1885);\n<\/p>\n<p>(b)   hear and dispose of appeal against any<br \/>\ndirection, decision or order of the Authority<br \/>\nunder this Act.<\/p>\n<p>7.\t\tThe Section indicates that the TDSAT has been<br \/>\nconstituted to adjudicate on any dispute between a licensor<br \/>\nand a licensee or between two or more service providers.<br \/>\nThough it also includes adjudication on a dispute between a<br \/>\nservice provider and a group of consumers, it excludes matters<br \/>\ncoming within the jurisdiction of the Monopolies and<br \/>\nRestrictive Trade Practices Commission  established under the<br \/>\nMonopolies and Restrictive Trade Practices Act, 1964, the<br \/>\ncomplaint of an individual consumer that is maintainable<br \/>\nbefore a Consumer Disputes Redressal Forum and a dispute<br \/>\nbetween a telegraph authority and any person referred to in<br \/>\nSection 7B of the Indian Telegraph Act, 1885.   Section 14A of<br \/>\nthe Act provides that the Central Government or a State<br \/>\nGovernment or a local authority or any person may make an<br \/>\napplication to the Appellate Tribunal for adjudication of any<br \/>\ndispute referred to in clause (a) of Section 14.  Section 14A,<br \/>\ntherefore, contemplates not only the filing of a claim before the<br \/>\nTDSAT by a licensee or a consumer, but also by the Central<br \/>\nGovernment or a State Government which could be a licensor<br \/>\nor a service provider.  Section 14B deals with the composition<br \/>\nof TDSAT.  It is to consist of a Chairperson and not more than<br \/>\ntwo Members to be appointed, by notification, by the Central<br \/>\nGovernment.  The selection of the Chairperson and Members<br \/>\nof the Appellate Tribunal shall be made by the Central<br \/>\nGovernment in consultation with the Chief Justice of India.<br \/>\nSection 14C provides the qualification of the Chairperson and<br \/>\nthe Members and the Chairperson has either to be a Judge of<br \/>\nthe Supreme Court or the Chief Justice of a High Court or a<br \/>\nretired Judge of the Supreme Court of a retired Chief Justice<br \/>\nof the High Court.  A Member has to be one who has held the<br \/>\npost of Secretary to the Government of India or any equivalent<br \/>\npost in the Central Government or the State Government for a<br \/>\nperiod of not less than two years or a person who is well<br \/>\nversed in the field of technology, telecommunication,<br \/>\nindustry, commerce or administration.  Under Section 14 of<br \/>\nthe Act, the jurisdiction of the TDSAT has to be exercised by a<br \/>\nBench consisting of one member or two members and in case<br \/>\nof difference of opinion between two members, the point of<br \/>\ndifference has to be referred to the Chairperson, who shall<br \/>\ndecide the point himself and the ultimate decision will be<br \/>\naccording to the majority opinion.  Section 15 ousts the<br \/>\njurisdiction of the Civil Court and it reads thus:<br \/>\n15.\tCivil court not to have jurisdiction<br \/>\nNo civil court shall have jurisdiction to<br \/>\nentertain any suit or proceeding in respect of<br \/>\nany matter which the Appellate Tribunal is<br \/>\nempowered by or under this Act to determine<br \/>\nand no injunction shall be granted by any<br \/>\ncourt or other authority in respect of any<br \/>\naction taken or to be taken in pursuance of<br \/>\nany power conferred by or under this Act.<\/p>\n<p>8.\t\tSection 16 of the Act provides that the TDSAT  shall<br \/>\nnot be bound by the procedure laid down in the Code of Civil<br \/>\nProcedure, but will be guided by the principles of natural<br \/>\njustice and subject to the other provisions of the Act have the<br \/>\npower to regulate its own procedure.  It is also to have the<br \/>\nspecified powers under the Code of Civil Procedure like<br \/>\nsummoning of witnesses, discovery, issue of requisition of any<br \/>\npublic record, issue of commission, review of its decisions,<br \/>\ndismissing an application for default or deciding it ex parte, for<br \/>\nrestoring an application dismissed for default or setting aside<br \/>\na decision rendered ex parte and any other matter which may<br \/>\nbe prescribed.  Sub-section (3) of Section 16 specifies that<br \/>\nevery proceeding before the TDSAT shall be deemed to be a<br \/>\njudicial proceeding in terms of the Indian Penal Code and the<br \/>\nTDSAT shall be deemed to be a civil court for the  purpose of<br \/>\nSection 195 and Chapter XXVI of the Code of Criminal<br \/>\nProcedure.   Section 17 confers right on the parties to legal<br \/>\nrepresentation.  Parties could authorise one or more chartered<br \/>\naccountants, company secretaries, cost accountants or legal<br \/>\npractitioners or any of its officers to represent its case.<br \/>\nSection 18 confers the right of appeal to the Supreme Court on<br \/>\na substantial question of law.   Section 19 provides that orders<br \/>\npassed by the TDSAT shall be executable as decrees through<br \/>\nthe TDSAT, but it has also the power to transmit any order<br \/>\nmade by it to a civil court to execute the order as if it were a<br \/>\ndecree made by that court.  Section 20 provides for penalties<br \/>\nfor wilful failure to comply with the orders of the TDSAT.<br \/>\nSection 27 of the Act one again indicates that no civil court<br \/>\nhas jurisdiction in respect of any matter which the Authority is<br \/>\nempowered by or under the Act to determine.\n<\/p>\n<p>9.\t\tThe conspectus of the provisions of the Act clearly<br \/>\nindicates that disputes between the licensee or licensor,<br \/>\nbetween two or more service providers which takes in the<br \/>\nGovernment and includes a licensee and between a service<br \/>\nprovider and a group of consumers are within the purview of<br \/>\nthe TDSAT.  A plain reading of the relevant provisions of the<br \/>\nAct in the light of the preamble to the Act and the Objects and<br \/>\nReasons for enacting the Act, indicates that disputes between<br \/>\nthe concerned parties, which would involve significant<br \/>\ntechnical aspects, are to be determined by a specialised<br \/>\ntribunal constituted for that purpose.  There is also an ouster<br \/>\nof jurisdiction of the civil court to entertain any suit or<br \/>\nproceeding in respect of any matter which the TDSAT is<br \/>\nempowered by or under the Act to determine.  The civil court<br \/>\nalso has no jurisdiction to grant an injunction in respect of<br \/>\nany action taken or to be taken in pursuance of any power<br \/>\nconferred by or under the Act.  The constitution of the TDSAT<br \/>\nitself indicates that it is chaired by a sitting or retired Judge of<br \/>\nthe Supreme Court or sitting or a retired Chief Justice of the<br \/>\nHigh Court, one of the highest judicial officers in the hierarchy<br \/>\nand the members thereof have to be of the cadre of secretaries<br \/>\nto the Government, obviously well experienced in<br \/>\nadministration and administrative matters.\n<\/p>\n<p>10.\t\tThe Act is seen to be a self contained Code intended<br \/>\nto deal with all disputes arising out of telecommunication<br \/>\nservices provided in this country in the light of the National<br \/>\nTelecom Policy, 1994.  This is emphasised by the Objects and<br \/>\nReasons also.\n<\/p>\n<p>11.\t\tNormally, when a specialised tribunal is constituted<br \/>\nfor dealing with disputes coming under it of a particular<br \/>\nnature taking in serious technical aspects, the attempt must<br \/>\nbe to construe the jurisdiction conferred on it in a manner as<br \/>\nnot to frustrate the object sought to be achieved by the Act.  In<br \/>\nthis context, the ousting of the jurisdiction of the Civil Court<br \/>\ncontained in Section 15 and Section 27 of the Act has also to<br \/>\nbe kept in mind.  The subject to be dealt with under the Act,<br \/>\nhas considerable technical overtones which normally a civil<br \/>\ncourt, at least as of now, is ill-equipped to handle and this<br \/>\naspect cannot be ignored while defining the jurisdiction of the<br \/>\nTDSAT.\n<\/p>\n<p>12.\t\tSection 14A of the Act gives the right to the Central<br \/>\nGovernment, or to the State Government to approach TDSAT<br \/>\non its own.  Going by the definitions in the Act, both<br \/>\nGovernments could be service providers.  The Central<br \/>\nGovernment could also be the licensor.  Thus, either as a<br \/>\nlicensor or a service provider, the Central Government could<br \/>\nmake an application to TDSAT seeking an adjudication of any<br \/>\ndispute between it and the licensee or between it and another<br \/>\nservice provider or between it and a group of consumers.  It<br \/>\nhas actually to make its claim in TDSAT.  There is no reason<br \/>\nto whittle down the right given to the Central Government to<br \/>\napproach the TDSAT for an adjudication of its claim which<br \/>\ncomes under Section 14(1) of the Act.   Normally, a right to<br \/>\nmake a claim would also include a right to make a cross-claim<br \/>\nor counter claim in the sense that the Central Government<br \/>\ncould always make an independent claim on matters covered<br \/>\nunder the Act and such a claim will have to be entertained by<br \/>\nthe TDSAT.  This the Central Government could do even while<br \/>\nit is defending a claim made against it in TDSAT, by way of a<br \/>\nseparate application.  If a subject matter is capable of being<br \/>\nraised before the TDSAT by the Central Government or the<br \/>\nState Government by way of a claim by making an application<br \/>\nunder Section 14 of the Act, it would not be logical to hold that<br \/>\nthe same claim could not be made by way of a counter claim<br \/>\nwhen the other side, namely, the licensee or consumers, had<br \/>\nalready approached the TDSAT with a claim of their own and<br \/>\nthe Central Government is called upon to defend it.  It is,<br \/>\ntherefore, not possible to accept an argument that a counter<br \/>\nclaim by the Central Government or State Government cannot<br \/>\nbe entertained by the TDSAT.  We hold that the TDSAT has<br \/>\njurisdiction to entertain a counter claim in the light of Section<br \/>\n14(1) and 14A of the Act.\n<\/p>\n<p>13.\t\tThe thrust of the argument on behalf of the<br \/>\nrespondent before us was, in a case where, a licence had not<br \/>\nactually been issued to a party by the Central Government,<br \/>\nthe dispute could not be said to be one between a licensor and<br \/>\na licensee, contemplated by Section 14(a)(i) or (ii) of the Act.  It<br \/>\nis submitted that only on the actual grant of a licence, a<br \/>\nperson would become a licensee under the Central<br \/>\nGovernment and only a dispute arising after the grant of a<br \/>\nlicence would come within the purview of the Act.  The<br \/>\nwording of the definition of licensee is emphasised in support.<br \/>\nConsidering the purpose for which the Act is brought into<br \/>\nforce and the TDSAT is created, we think that there is no<br \/>\nwarrant for accepting such a narrow approach or to adopt<br \/>\nsuch a narrow construction.  It will be appropriate to<br \/>\nunderstand the scope of Section 14(a)(i) of the Act and for that<br \/>\nmatter Section 14(a)(ii) of the Act also, as including those to<br \/>\nwhom licenses were intended to be issued and as taking in<br \/>\nalso disputes that commence on the tender or offer of a person<br \/>\nbeing accepted.  In other words, a dispute commencing with<br \/>\nthe acceptance of a tender leading to the possible issue of a<br \/>\nlicence and disputes arising out of the grant of licence even<br \/>\nafter the period has expired would all come within the purview<br \/>\nof Section 14(a) of the Act.  To put it differently, Section 14<br \/>\ntakes within its sweep disputes following the issue of a Letter<br \/>\nof Intent pre grant of actual licence as also disputes arising<br \/>\nout of a licence granted between a quondam licensee and the<br \/>\nlicensor.\n<\/p>\n<p>14.\t\tIn the case on hand, the Notice Inviting Tender<br \/>\ndefined a licensee as a registered Indian Company that will be<br \/>\nawarded licence for providing the service.  Now, pursuant to<br \/>\nthat invitation, the predecessor of the respondent submitted<br \/>\nits tender and the appellant accepted it.  A Letter of Intent was<br \/>\nalso issued.  The respondent accepted and started negotiating<br \/>\nfor certain modifications, which apparently the appellant was<br \/>\nwilling to consider.  But ultimately, the contract did not come<br \/>\ninto being.  The licence was not actually granted.  It is the case<br \/>\nof the appellant that the appellant had suffered considerable<br \/>\nloss because of the respondent walking out of the obligation<br \/>\nundertaken by acceptance of the Letter of Intent.  According to<br \/>\nthe learned Additional Solicitor General appearing for the<br \/>\nappellant, such a dispute would also come within the purview<br \/>\nof Section 14 of the Act going by the definition of licensee and<br \/>\nthe meaning given to it in the Notice Inviting Tenders.  The<br \/>\nargument of learned Senior Counsel on behalf of the<br \/>\nrespondent is that the expressions licensor and licensee<br \/>\nare defined in the Act and the respondent had not become a<br \/>\nlicensee and the appellant had not become a licensor since the<br \/>\nagreement was never entered into between the parties for<br \/>\nproviding telecom services in the Karnataka Telecom Circle<br \/>\nand the attempt to rope in an intending licensee to whom a<br \/>\nLetter of Intent has been issued or the entering into a contract<br \/>\nis proposed, cannot be countenanced since the respondent<br \/>\nhas not become a licensee within the meaning of the Act and<br \/>\nconsequently this was not a dispute that came within the<br \/>\npurview of Section 14(1) of the Act.\n<\/p>\n<p>15.\t\tWe have already indicated that a specialised<br \/>\ntribunal has been constituted for the purpose of dealing with<br \/>\nspecialised matters and disputes arising out of licenses<br \/>\ngranted under the Act.  We therefore do not think that there is<br \/>\nany reason to restrict the jurisdiction of the tribunal so<br \/>\nconstituted by keeping out of its purview a person whose offer<br \/>\nhas been accepted and to whom a letter of intent is issued by<br \/>\nthe Government and who had even accepted that letter of<br \/>\nintent.  Any breach or alleged breach of obligation arising after<br \/>\nacceptance of the offer made in response to a Notice Inviting<br \/>\nTender, would also normally come within the purview of a<br \/>\ndispute that is liable to settled by the specialised tribunal.  We<br \/>\nsee no reason to restrict the expressions licensor or<br \/>\nlicensee occurring in Section 14(a)(i) of the Act and to<br \/>\nexclude a person like the respondent who had been given a<br \/>\nLetter of Intent regarding the Karnataka Circle, who had<br \/>\naccepted the Letter of Intent but was trying to negotiate some<br \/>\nfurther terms of common interest before a formal contract was<br \/>\nentered into and the work was to be started.  To exclude<br \/>\ndisputes arising between the parties thereafter on the failure<br \/>\nof the contract to go through, does not appear to be warranted<br \/>\nor justified considering the purpose for which the TDSAT has<br \/>\nbeen established and the object sought to be achieved  by the<br \/>\ncreation of a specialised tribunal.  <a href=\"\/doc\/1960785\/\">In Cellular Operators<br \/>\nAssociation of India and others  vs. Union of India and<br \/>\nothers<\/a> [(2003) 3 SCC 186] this Court had occasion to consider<br \/>\nthe spread of Sections 14 and 14A of the Act.  This Court held<br \/>\nthat the scope of Sections 14 and 14A are very wide and is not<br \/>\nconfined by restrictions generally imposed by judge made law<br \/>\non the tribunal exercising an appellate jurisdiction.  Of course,<br \/>\ntheir Lordships were considering in particular, the case of<br \/>\nappellate jurisdiction.  But this Court further said that the<br \/>\ntribunal has the power to adjudicate on any dispute but while<br \/>\nanswering the dispute, due weight had to be given to the<br \/>\nrecommendations of the authority under the Act which<br \/>\nconsists of experts.  This decision, though it did not directly<br \/>\ndeal with the power of the TDSAT as the original authority but<br \/>\nwas dealing with the power of the TDSAT  as an appellate<br \/>\nauthority and the power of this Court in appeal, clearly gives<br \/>\nan indication that there is no need to whittle down the scope<br \/>\nof Sections 14 and 14A of the Act.\n<\/p>\n<p>16.\t\tIt has also to be noted that while prescribing the<br \/>\nprocedure under Section 16 of the Act, what is said is that the<br \/>\nTDSAT shall not be bound by the procedure laid down by the<br \/>\nCode of Civil Procedure but it shall be guided by the principles<br \/>\nof natural justice.  It is significant to note that it is not a case<br \/>\nof exclusion of the powers under the Code of Civil Procedure<br \/>\nand conferment of specific powers in terms of sub-section (2)<br \/>\nof that Section.  It is really a right given to the TDSAT even to<br \/>\ngo outside the procedural shackles imposed by the Code of<br \/>\nCivil Procedure while dealing with a dispute before it.<br \/>\nTherefore, it will be difficult to keep out the provisions for the<br \/>\nfiling of a counter claim enshrined in Order VIII Rule 6A of the<br \/>\nCode of Civil Procedure which could be applied by the TDSAT.<br \/>\nThe sweep of Order VIII Rule 6A of the Code now takes in even<br \/>\nclaims independent of the one put forward in the application if<br \/>\nit is one the respondent therein has against the applicant.  On<br \/>\nthe whole, we are of the view that the TDSAT was in error in<br \/>\ndismissing the counter claim as not maintainable.\n<\/p>\n<p>17.\t\tIn the light of our finding that the counter claim<br \/>\nwas maintainable and it requires to be investigated, we think<br \/>\nthat the proper course is to set aside the finding rendered by<br \/>\nthe TDSAT on the plea of set off raised by the appellant. This<br \/>\nis in view of the fact that acceptance of the counter claim or<br \/>\neven a part thereof might throw open the question of legal or<br \/>\nequitable set-off, to be considered in the light of the finding on<br \/>\nthe counter claim. Therefore, we think this to be an appropriate<br \/>\ncase where we should reopen the whole matter without going<br \/>\ninto the merits of the contentions of parties on the plea of set<br \/>\noff raised by the appellant and leave the question to be decided<br \/>\nby the TDSAT along with the counter claim that has been<br \/>\nmade by the appellant. On taking note of the objection that<br \/>\nthe counter claim has not been made specific and has not<br \/>\nbeen put forward in a proper manner, we are satisfied that it<br \/>\nwould be appropriate to direct the appellant to make a proper<br \/>\ncounter claim before the TDSAT within three months from<br \/>\ntoday.  The TDSAT thereafter will give the respondent an<br \/>\nopportunity to file its written statement to the counter claim<br \/>\nand then decide the claim made by the respondent and the<br \/>\ncounter claim afresh in accordance with law.\n<\/p>\n<p>18.\t\tWe, thus, allow this appeal and setting aside the<br \/>\ndecision of the TDSAT, remand the claim and the counter-<br \/>\nclaim for a fresh adjudication and disposal in accordance with<br \/>\nlaw.  We leave the parties to suffer their respective costs in<br \/>\nthis Court.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Union Of India vs Tata Teleservices (Maharashtra) &#8230; on 23 August, 2007 Author: P Balasubramanyan Bench: H.K. Sema, P.K. Balasubramanyan CASE NO.: Appeal (civil) 1033 of 2004 PETITIONER: UNION OF INDIA RESPONDENT: TATA TELESERVICES (MAHARASHTRA) LTD DATE OF JUDGMENT: 23\/08\/2007 BENCH: H.K. SEMA &amp; P.K. BALASUBRAMANYAN JUDGMENT: J U D G [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-106701","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Union Of India vs Tata Teleservices (Maharashtra) ... on 23 August, 2007 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/union-of-india-vs-tata-teleservices-maharashtra-on-23-august-2007\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Of India vs Tata Teleservices (Maharashtra) ... on 23 August, 2007 - Free Judgements of Supreme Court &amp; 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