Supreme Court Issues Notice On Reliance Jio's Plea To Be Heard In Appeals Of Vodafone & Airtel Challenging DoT Penalty

The Supreme Court on Monday issued notice in plea filed by Reliance Jio challenging order of Telecom Disputes Settlement and Appellate Tribunal dismissing its application for impleadment in Telecom Petitions filed by Vodafone- Idea and Airtel against demand notices issued levying penalty of INR 3,050 Crores on them

A Bench Comprising Chief Justice of India NV Ramana, Justice Krishna Murari and Justice Hima Kohli issued the direction while considering a civil appeal preferred by Reliance Jio Infocomm Ltd.

The Telecom Petitions before TDSAT challenge Demand Notices dated 29.9.2021 issued by the Department of Telecommunications levying a cumulative penalty of INR 3,050 Crores on the Vodafone- Idea and Airtel for allegedly denying adequate Points of Interconnection to RJIL in 2016.

The 3 Telecom Petitions arose out of complaints filed by Reliance Jio before the Telecom Regulatory Authority of India.

The Demand Notices were issued by the DoT (accepting the recommendations issued by TRAl in this regard) after giving the Petitioners before the TDSAT, and also RJIL, an opportunity of being heard. In terms of these Demand Notices, the DoT imposed the aforesaid penalty of IN 3,050 Crores on the Petitioners before the TDSAT.

Reliance Jio has argued that the Demand Notices have been impugned before the TDSAT in the Telecom Petitions and categorical assertions have been made against RJIL - including assertions relating to the interpretation of bilateral contracts between RJIL and Petitioners. Therefore, RJIL is directly interested in and affected by the outcome of the Telecom Petitions.

Reliance Jio has further submitted that even while rejecting its applications for impleadment, the Impugned Order implicitly recognised that RJIL is a necessary and proper party whose presence will assist the adjudication of issues before it. Further to this effect, the Impugned Order also held that RJIL is permitted to file short written notes of not more than 10 pages which the Tribunal may look into at the time of final adjudication/decision.

In the Telecom Petitions before TDSAT Vodafone- Idea Ltd. And Airtel ( Bharti Airtel Ltd, and Bharti Hexacom Ltd.) have challenged Demand Notices dated 29.9.2021 issued by the Department of Communications ("DoT"), whereby a cumulative penalty of INR 3050 Crores has been imposed on them.

The realisation of 3,050 Crores penalty by the DoT has been summarily stayed by the TDSAT on 22.11.2021

The reason for the imposition of the penalty on Vodafone-Idea and Airtel (collectively, the Incumbent Dominant Operators ("IDOs")) was that they DOs had allegedly wilfully denied adequate Points of Interconnection ("POls") to RJIL in 2016.

According to the petitioner, it was as a consequence of this denial that RJIL suffered call failures of over 10.2 Crores on a daily basis in this period. It was in furtherance of this denial of POls that, during this period, calls: (a) within RJIL's network; and (b) to RJIL's network were largely successful, but calls from RJIL's network to the networks of the IDs often failed.

According to the petitioner, as a direct consequence of this denial of POls, not only did each of RJiL's subscribers suffer immensely, but enormous harm was also caused to RJIL's reputation amongst the consumers, hampering its growth in the telecom sector.

'This was, of course, the very intention with which the concerned denial of POIs to RJIL was orchestrated by the IDs - seeking to protect their monopoly in the telecom sector at the expense of the Indian consumers.' RJIL has argued in its petition

In view of this situation, RJIL had filed complaints before TRAI in 2016 and also attended the meeting held by TRAI in this regard. After considering the submissions of RJiL and the defence set up by the DOs, TRAI accepted RJIL's submissions and recommended the imposition of the above-referenced IN 3,050 Crore penalty on the IDOs on 21.10.2016

RJIL sought impleadment in the proceedings before TDSAT on the following basis:

(a) RJIL is directly interested in the proceedings before the TDSAT, not only as an industry player governed by TRAl's and DoT's supervisory powers, but also as the complainant who was personally heard before the TRAI and DoT, and on whose evidence the penalty was imposed vide the Demand Notices dated 29.9.2021 impugned before the TDSAT

(b)RJiL is the victim of the violations committed by the IDOs which led to the issuance of the Demand Notices dated 29.9.2021 impugned before the TDSAT and suffered daily call failures of over 10.2 Crore calls during the relevant period - as highlighted by RJIL in its letter dated 15.9.2016

(c) Specific allegations were made in the Telecom Petitions against RJIL.

Case Title: Reliance Jio Infocomm Lrd v Vodafone Idea ltd & Ors