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SC threatens contempt against Airtel, Voda over non-payment of dues

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Press Trust of India New Delhi
Last Updated : Feb 14 2020 | 8:00 PM IST

The Supreme Court on Friday threatened contempt proceedings against top executives of Bharti Airtel, Vodafone Idea and other telecom firms for failing to comply with its directive to pay an estimated Rs 1.47 lakh crore in past dues, and asked whether there was no law left in the country.

In a judgment which will have a far-reaching implications for the telecom sector, the apex court expressed displeasure at the "temerity" of a desk officer in the Department of Telecom for "scuttling" its order by issuing a written directive to not take any coercive action against firms for not depositing dues by the January 23, 2020, deadline.

A bench of Justices Arun Mishra, S Abdul Nazeer and M R Shah said the companies have violated its order "in pith and substance" and asked them to clear dues before the next date of hearing on March 17.

"In spite of the dismissal of the review application (filed by the telcos), they have not deposited any amount so far. It appears the way in which things are happening that they have scant respect to the directions issued by this court," they said in the judgment.

Separate petitions filed by non-telecom firms such as gas utility GAIL and power transmission firm PowerGrid, who were slapped with a demand of Rs 2.65 lakh crore by the DoT, were withdrawn by the applicants after the court said they can represent their case at appropriate forms.

Following the Supreme Court rap, the Department of Telecom withdrew its January 23, 2020 order that had called for no coercive action against defaulting firms and started issuing notices to telcos asking them to deposit dues before midnight of Friday.

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While Airtel said it will deposit Rs 10,000 crore out of its dues of about Rs 55,000 crore within a week, there was no word from Vodafone on payment of dues.

Expressing displeasure over an order passed by the DoT's desk officer, which virtually stayed the effect of its verdict, the apex court said this is nothing "but a device to scuttle" its judgment and this case projects a "very disturbing scenario". It issued a notice to the officer.

The bench noted that the desk officer "has the temerity to pass the order "to the effect of issuing a direction to another constitutional authority, the accountant general, "not to insist for any payment pursuant to the order passed by this court and not to take any coercive steps till further orders."
Hearing the pleas filed by Vodafone Idea, Bharti Airtel, Tata Teleservices and others seeking more time for payment of dues, the bench expressed serious displeasure and said, "How can a desk officer do this to the Supreme Court's order? Is this the law of the country. Is this the way you treat the courts."
Referring to the desk officer's letter, the apex court bench said, "This is nothing but a device to oblige the companies. This kind of order could not have been passed by a desk officer."

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First Published: Feb 14 2020 | 8:00 PM IST

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