The Delhi High Court in an interim order today stayed the Centre's notification making it mandatory for multi-system operators (MSOs) to run a scroll informing subscribers about shutting of their operation from December 13 in view of their not being registered with the postal department.
The cable operators have challenged the notification of November 27, 2013, which directs MSOs to either shut shop by December 13 or register themselves with the postal department and also pay an amount of Rs 36 crore as registration fee.
Justice V K Jain also issued a notice to the ministry and sought its response by December 9 on the contention of cable operators that they have been operating since 1997 and their status cannot change to MSOs with the coming of the notification of 2013.
An MSO is an operator of multiple cable or direct broadcast satellite television systems.
The notification states that MSOs not registered with the postal department as per the Indian Telegraph Act, by paying Rs 36 crore, will have to stop operations as well as inform their subscribers through a scroll on all the channels that with effect from December 13 they will be shut down.
During the proceedings, the court questioned how local cable operators can be treated as MSOs when such a term is absent from the Act, to which the ministry said they have been termed as MSOs under the Indian Telegraph Rules.
The court, however, disagreed with the stand taken by the ministry, saying that as per the Act MSOs are not expected to register with the postal department and "if there is a conflict between the Act and the Rules, the Act will prevail".
"Registration of MSOs is required only as per Rules and rules cannot go beyond the Act," Justice V K Jain said.
