Newstrack

SC extends interim order on cable tariff for hotels and restaurants

Vikram Kharvi - Mumbai

The Supreme Court extended its interim order, directing hotels and restaurants to pay subscription charges for availing cable TV services at a rate that prevailed till April 28, 2006. The bench comprising Justice B N Agarwal and Justice P P Naolekar, hearing appeals filed by Hotels & Restaurant Association - Western India (HRAWI) against the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) said, that its April 28, 2006, order maintaining the status quo, will continue till further orders.

The hotels and restaurants till last year made payments for cable TV facilities as per the local cable operator's tariff. On January 17, 2006, TDSAT passed an order stating that hotels were not consumers because they provided services in commercial interest and as per the consumer protection act, commercial services did not come under the consumer bracket. Additionally TDSAT, asked the Telecom Regulatory Authority (TRAI) to formulate a tariff order for commercial consumers. On March 7, 2006 TRAI issued a notification, which said that the amount the hotel and restaurants were paying on March 1, 2006 will continue.

Manbeer Choudhary, president, FHRAI said "Cable TV facility is just like any other amenities offered by the hotels, without charging anything extra from the consumer for the same, hence it does not come under the bracket of commercial service." He also informed that broadcasters want hotels to pay Rs 1200 per month for each room, which is not a viable option at all, as hotel having a rack rate of Rs 1000-1500 cannot afford this rate under any circumstances."

Advocate Ashok Desai appearing for one of the broadcaster requested the court to modify the interim order, as the hotels stopped paying anything to the broadcasters and were continuing to illegally take the feed from unauthorised cable operators. At the outset, senior advocate Arun Jaitley and K K Venugopal, appearing on behalf of the association argued that, all members of the association are paying as per the tariff rate fixed by TRAI. They also mentioned that there was no distinction between consumer and commercial rates, and hotels owners connections from cable operators separately for each room.

However, now the broadcasters want that the connection should be taken directly from them, for which commercial rates should be paid. However, looking at the facts and circumstances of the case, the court has ordered that the matter be fixed for a final hearing within one month and the extension would continue till then.