Sun given option to disconnect signals of Hyderabad MSO on non-payment of dues

NEW DELHI: Sun Distribution Services Pvt. Ltd has been given the option of disconnecting the signals to multisystem operator Lifestyle Communication of Hyderabad for not clearing its dues.

The Telecom Disputes Settlement and Appellate Tribunal said that it was satisfied that the MSO did not deserve any more indulgence as it had failed to make the payments as directed by the Tribunal. The Tribunal therefore recalled its restraint direction to Sun Distribution issued on 6 May and 4 September when time was given to the MSO against the petitioner. 

However, the Tribunal said Sun Distribution must restore the supply of its signal to the MSO as soon as it receives the payment of the last installment in terms of the order passed on 6 May and also on clearance of the dues of licence fees for the current months.   

The order came on a recovery petition filed by Sun Distribution for realization of its dues of licence fee. 

Since a substantial amount of dues was admitted, the Tribunal had said on 6 May that the MSO will make an on-account payment to Sun of the sum of Rs One crore towards arrears for the analogue GHMC area for the period April 2014 to March 2015. “The payment shall be made in six equal monthly installments and shall also carry interest at the rate of 14 percent per annum. The interest will be computed from the dates, the payments became due till the dates of actual payment. In addition, the respondent shall also pay to the petitioner, monthly subscription fee for the aforesaid area at the rate of Rs 7 lakh per month”. 

The Tribunal had been informed that the last installment payable by 31 October has fallen in default.   Sun Counsel Abhishek Malhotra said the MSO had also defaulted in making payment of the monthly licence fees and the licence fees for the months of October and November had not been paid.

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