Disputes Between Parties To Franchise And Consultancy Agreement Cannot Be Adjudicated By TDSAT; Delhi HC appoints Arbitrator
The Delhi High Court, while referring the parties to the Arbitration, observed that any dispute of the franchisee who is neither a licensor, licensee, service provider nor a group of consumers is an arbitrable dispute and is not subject to Telecom Disputes and Settlement and Appellant Tribunal (TDSAT) under the Telecom Regulatory Authority of India Act, 1997 (TRAI).
The petition was filed seeking an appointment of an arbitrator to adjudicate the disputes between the parties. The Petitioner entered into a franchise and consultancy agreement with the Respondents which also included an arbitration clause.
The Bench of Justice Jasmeet Singh relied on Sections 14 and 14(A) of the TRAI Act and observed, “A perusal of the above clearly shows that the TDSAT will have power to adjudicate disputes between the licensor and licensee, two or more service providers, service provider and a group of consumers… In the present case, a perusal of the obligations of the franchise clearly shows that the franchise/respondent is only engaged to market, promote, sale and distribute the services of the petitioner to the ultimate subscribers and develop the market for the petitioner.”
Advocate Tejvir Bhatia appeared for the Respondents.
The Court appointed a sole arbitrator in the case and further observed, “In the present case, for the reasons stated, I am of the view that the respondent does not come within the definition of a licensee or a service provider…For the reasons stated, the petitions are allowed and disposed of with the following directions”
The Counsel for the Respondent stated that there were no arbitral disputes between the parties. He stated that in view of Sections 14 and 15 of the TRAI Act, it is the TDSAT which will be the authority to adjudicate the disputes between the parties.
Accordingly, the Court allowed the petition.
Cause Title: Fusionnet Web Services Pvt Ltd v. M/S Yash Fiber Network & Anr. and Fusionnet Web Services Pvt Ltd v. M/S Om Fiber Network & Anr.
Appearances:
Petitioner: Appearance not given
Respondents: Advocates Tejvir Bhatia and Kunal Vats