SC allows appeal of govt against TDSAT order

New Delhi, Aug 23 (UNI) The Supreme Court today allowed the appeal of the Central government against the order of the Telecom Disputes Settlement and Appellate Tribunal(TDSAT) directing the government to refund Rs 50 crore to Tata Tele Services in relation to Maharashtra Service area alongwith 17 per cent interest per annum.

A bench comprising Justices H K Sema and P K Balasubramanyan remanded the matter back to TDSAT to decide it afresh after considering a 'set off claim' of Rs 654.25 crore raised by the government towards the loss suffered by it on account of failure of Tata Tele Services to fulfill its obligations under the letter of intent issued to it in respect of the Karnataka telecom circle.

The TDSAT had upheld the claim of the company and had rejected the counter claim raised by the government holding that it had no jurisdiction to entertain such a claim.

The apex court, which held that the counter claim raised by the goverment is maintainable, directed the tribunal "on taking note of the objection that the counter claim has not been made specific and has not been put forward in a proper manner, we are satisfied that it would be appropriate to direct the appellant to make a proper counter claim before the TDSAT within 3 months from today.

The TDSAT thereafter would give the respondent an opportunity to file written statement to the counter claim then only matter would be considered once again as per the law." The apex court, however, made it clear that it has not gone into the merits of the case.

UNI