Case: Union of India and Another Vs. Alok Kumar Dass and Others

In this case, the appellants had granted a licence to Respondent 3 Company which permitted them to provide service of cellular phones. Respondents 1 and 2 herein were stated to be the subscribers. When the licence of Respondent 3 was cancelled because ofof dues of Rs. 61 crores, Respondents 1 and 2 chose to file a writ petition in the High Court saying that the cancellation of the licence would amount to the disconnection of their telephones and, therefore, that licence should not be cancelled without making an alternative arrangement for the writ petitioners. On this, the impugned order was passed by the High Court permitting the Union of India to encash a bank guarantee of Rs. 8.9 crores and directing the appellants herein including the Department of Telecommunications (DoT) to reconnect the connectivity.

Reasoning: We are astonished to see such an order being passed which is clearly a device used by the defaulter licensee to get his licence extended without making payment of the amounts due. We are firmly of the opinion that this device should not have been allowed to succeed. The writ petitioners had no locus standi to challenge the action of DoT in cancelling the licence of the licensee on account ofof the licence fee.