NDLI: Reliance Telecom Ltd. & Anr. Vs. Union of India & Anr.

Reliance Telecom Ltd. & Anr. Vs. Union of India & Anr.

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Reliance Telecom Ltd. & Anr. Vs. Union of India & Anr.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Spectrum auction
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case Type	Transferred Case
Court	Supreme Court of India
Disposal Nature	Others
Headnote	Telecommunication: Spectrum auction - For allocation of spectrums in various areas - Notice Inviting Application-2015 (NlA) - Terms and conditions of - Set by Central Government for the auction - Challenged by participants in the NlA (telecom service providers) before High Courts - Interim orders by High Court - Supreme Court, in Special Leave Petition stayed order of High Court and permitted the auction to continue - Cases Pending before High Courts transferred to Supreme Court - Court granted liberty to Central Government to finalize the auction - Plea inter alia that eligibility criteria of minimum bidding for different categories of bidders under different bands attracts the frown of Art. 14 of Constitution and that principle of capping keeps the petitioners away from bidding in respect of a particular quantum and makes the bid non-competitive - Held: The challenge pertaining to tender conditions formulated by the Central Government is not tenable as no valid grounds for interference have been made out - The endeavour of the Government in the NIA is not based on any classification except that all service providers must have a minimum of 5 MHz of spectrum in order to deploy mobile technology - However, even if it is assumed that there is classification, the classification of entities is on the basis of two sets of people i.e. (1) new entrants including the expiring licensees and (2) existing licensees both of whom ought to have minimum 5 MHz so as to enable to deploy on any mobile technology - Such classification is based on intelligible differentia having a nexus with the object sought to be achieved and there is no violation of Art. 14 - Capping has been kept in vogue to have a bigger field and it is based on a rational principle to avoid monopoly and to create a healthy competitive bidding - The decision of Central Government is based on certain norms and parameters - It is a policy decision which subserves the consumers' interest - Decision A to conduct the auction cannot be said to be mala fide or based on extraneous considerations - Constitution of India - Art. 14. Deeds and Documents: Notice Inviting Application (NIA) - Interpretation of Held: NIA being an invitation to offer, the rules of interpretation of contracts would apply and not the rules that may be applied in the case of interpretation of statutes - In case of difference of opinion in the manner of interpretation, it is the interpretation of the party who is offering the contract ought to be adopted - Court, by way of mandamus, cannot require the State to interpret the clause in a given c way - Court can interpret the clause contrary to the way of interpretation by the offering party or literal interpretation, only on the limited grounds of judicial review by striking down the clause as arbitrary - Contract - Interpretation of Statutes. Legitimate Expectation: Concept of legitimate expectation has no role to play where State action is as a public policy or in public interest, unless the action taken amounts to an abuse of power.Judicial Review: Scope of judicial review - In respect of policy decisions in fiscal matters - Held: The Court cannot get and dwell as an appellate authority into complex economic issues in exercise of power of judicial review- In the matters relating to complex auction procedure having enormous financial ramification, interference by Court can . lead to· a situation which is not warrantable and may have F unforeseen adverse impact effecting fiscal imbalance - Interference in such auction should be only on the ground of stricter scrutiny, when the decision making process smacks of obnoxious arbitrariness or any extraneous consideration. Telecom Regulatory Authority of India Act, 2003: s.11 (J)(a) - Recommendations under - By Telecom Regulatory Authority of India - Whether binding on Central Government - Held: Recommendations given u/s. 11 (l)(a) are not binding but deserve to be given due weightage
Judge	Honble Mr. Justice Dipak Misra
Neutral Citation	2017 INSC 1254
Petitioner	Reliance Telecom Ltd. & Anr.
Respondent	Union Of India & Anr.
SCR	[2017] 4 S.C.R. 972
Judgement Date	2017-01-12
Case Number	43

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