Regulators

Kolkata HC puts stay order on Digicable Comm Service’s license cancellation till 29 August

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KOLKATA: Granting relief to Digicable Comm Services, the Calcutta High Court has put a stay order on the cancellation of the registration of Kolkata-based multi-system operator (MSOs) till 29 August.

In the order that was passed on 12 August, it states that “The petitioners having been in business for quite some time would suffer irreparable loss and injury, unless appropriate ad-interim protection is granted to them.”

It continues to say, “The operation of the order dated 17/18 July, 2014 shall remain stayed till 29 August 2014”.

Last month, the Ministry of Information and Broadcasting (MIB) had cancelled the registration of Digicable.

The Digicable counsel had argued in the court that the MIB had only stated the reason for cancellation of registration as not receiving security clearance from the Home Ministry. However, it did not give the reason for denial of security clearance. The counsel from the ministry side stated that the reason for clearance not being given cannot be disclosed to Digicable for security reasons.

The court also observed that when the company was given the DAS licence in 2013, that was subject to the security clearance from Home Ministry and the same has been denied in the order passed last month. They were subsequently asked to stop operations within 15 days.

Digicable Comm was hopeful that after appealing to the Home Ministry and moving the High Court, the decision would be in favour of the MSO.

The company is a joint venture between Digicable (51 per cent) and Kolkata-headquartered Multicar Group (49 per cent) was formed in the year 2009, to gain the foothold in the West Bengal market.

“We will follow the mandate. We are hopeful that the authorities would consider the minute details presented by us,” said Digicable Comm director Dileep Singh Mehta.

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