CHENNAI: A division bench of the Madras High Court headed by Justice Agnihotri on September 29 remanded the case of Sun TV group bid for FM Radio Phase III to be decided by the Single Judge who had passed interim orders in July permitting Sun TV group to participate in the FM Radio auction.
In July, the Sun TV group had filed a writ petition challenging the denial of security clearance to Sun TV, which had the effect of precluding the group from bidding for the FM Radio Phase III. By his interim order in July last, the Single Judge had allowed the Sun TV group to participate in the FM radio auction, but directed that the bids be kept in a sealed envelope and not opened till the writ petition was finally disposed of.
The Central government (Ministry of Information and Broadcasting) had appealed against the interim order permitting the Sun TV group to participate in the FM Radio auction. On September 29, while disposing of the appeal, the division bench of the High Court remanded the issue back to the Single Judge. Though the full text of the division bench’s order has not been made available yet, the court pronounced the verdict remanding the case back to the Single Judge.
The case was heard and reserved for orders on September 24, but before the judgment was pronounced, curiously the Information and Broadcasting Ministry seems to have sought a clarification from the Additional Solicitor General (ASG) who appeared for the Central government whether in view of the interim orders of the Single Judge dated July 23, the Sun TV group could be allowed to migrate to FM Radio Phase III. It is curious because if that was possible, it could have been done immediately after the interim orders were passed.
It appears that the ASG responded that since the Single Judge had made the validity of the Sun TV bid for FM Radio Phase III subject to the final decision in the writ petition, there was no question of permitting the Sun TV group at this stage to migrate to Phase III, which means accepting their bid — contrary to the Home Ministry’s denial of security clearance to the promoters of the company.
The ASG seems to have also expressed the view that any such move will be interpreted as a favour to the Sun TV group.
The ASG’s opinion seals any possibility of the Sun TV group getting the bids through. It will have to await the decision of the Single Judge first, which will also be subject to the results of appeal against it. It appears to be a prolonged litigation for the Sun TV group.
In another case relating to Kal Cables, the division bench upheld the decision of the Single Judge that as no opportunity was given to Kal Cables before denial of security clearance to it, the decision of the government was unacceptable. It appears that the Central government would appeal against that order and the matter would now go to the Supreme Court.