The court found fault with the Ministry for cancelling the registration without issuing a notice to the firm.
Concurring with the submissions made by the counsel for the company that the Maran brothers had nothing to do with the firm, a division bench in its order said "there is considerable force in the arguments."
The bench said ".. Issuance of a notice is not an empty formality in a matter of this nature" and concurred with the views expressed by the single judge "with respect to violation of principles of natural justice. We are also of the view that there is no merit in the intra Court appeals filed by the central government."
The Ministry had on August 28, 2014 cancelled the registration given to M/s.Kal Cables Private Limited to operate as MSO's (Multi System Operators) to provide Cable Television network services, citing that the Home Ministry had refused security clearance to them.
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This was challenged by the firm and the cancellation was quashed by the single juge but with some adverse observations, following which the Centre filed appeals.
From the notice inviting applications for e-auction of Private FM Radio-Channel issued by I and B Ministry, it was clear that the Cable Operator is not in any way concerned or connected with the process of obtaining security clearance.
"The order declining security clearance is not in the public domain. It would not be communicated to the applicant. It would be revealed only through the order declining registration or suspending the existing registration.