TDSAT orders Om Cable to pay Hathway Rs 18.6 lakh in subscription dues

New Delhi: A cable subscription dispute that stretched for nearly a decade has finally found its signal. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed Om Cable TV Network to pay Hathway Cable & Datacom Ltd Rs 18.60 lakh in outstanding subscription dues along with simple interest at 9 per cent per annum, while ruling that rival multi-system operator CCN DEN Network Pvt. Ltd. bears no liability in the matter.

In its judgment dated July 28, TDSAT member Ram Krishna Gautam partly allowed Hathway’s petition after holding that the company had successfully established its claim through documentary evidence. The tribunal noted that Om Cable neither contested the proceedings nor filed any rebuttal.

Hathway had approached the tribunal in 2017 seeking recovery of Rs 18.60 lakh in unpaid subscription charges, along with interest at 18 per cent per annum. The company had also sought directions for the return of 600 set-top boxes or payment of Rs 7.5 lakh towards their value.

The broadcaster had impleaded CCN DEN Network, alleging that Om Cable had migrated to the rival MSO’s network without clearing its dues or returning the equipment.

However, the tribunal held that CCN DEN could not be held responsible for the outstanding subscription amount because there was no contractual relationship between the two companies. It observed that the interconnection agreement existed solely between Hathway and Om Cable TV Network.

The tribunal found that Hathway had produced sufficient evidence to support its claim, including board resolutions authorising the proceedings, an authority letter empowering its representative, the interconnect term sheet, invoices issued to Om Cable, a statement of account showing the outstanding dues and a legal notice issued on June 27, 2017 demanding payment and the return of the set-top boxes.

According to the tribunal, these documents were properly exhibited and supported by an affidavit from Hathway’s authorised representative. Since Om Cable was proceeded against ex parte and chose not to contest the case, the tribunal held that Hathway’s evidence remained unchallenged and satisfied the civil law standard of the preponderance of probabilities.

While Hathway had sought interest at the contractual rate of 18 per cent, the tribunal awarded simple interest at 9 per cent per annum from the date the petition was filed until the amount is realised. It said the lower rate was consistent with its approach in similar cable television disputes and reflected the prevailing financial conditions in the industry.

The tribunal also reiterated that CCN DEN could not be saddled with liability for either the subscription dues or the 600 set-top boxes in the absence of any written agreement or contractual relationship with Hathway. It further recorded Hathway’s submission during the hearing that it was no longer pressing any relief against the second respondent.

The issue relating to Hathway’s claim for the return of the 600 set-top boxes, or compensation for their value, will be dealt with separately in the remaining part of the tribunal’s judgment.