TDSAT directs LCO to clear ₹1.22 lakh arrears, return 550 STBs to DEN Networks

In a strongly worded order, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed Aakash Cable Network, a local cable operator (LCO), to pay outstanding dues and return 550 set-top boxes (STBs) to DEN Networks Ltd after the operator defaulted on subscription payments and migrated to a competing platform without notice or settlement of liabilities.

The judgment, delivered on December 5, 2025, by Justice Ram Krishna Gautam, comes in Broadcasting Petition No. 406 of 2020, filed under Sections 14 and 14A of the TRAI Act, 1997.

DEN Networks had sought recovery of ₹1,22,633 in unpaid subscription fees as of April 30, 2020, as well as the return of 550 STBs issued under an interconnect agreement dated October 17, 2019. In the absence of STB return, the company requested compensation of ₹10,99,450, calculated at ₹1,999 per device.

The tribunal accepted DEN’s position, noting that the LCO had repeatedly defaulted on monthly subscription payments despite “uninterrupted supply” of television signals by the MSO.

Additionally, the petitioner produced invoices, account statements, and an inventory list of issued STBs, all of which remained unchallenged.

Despite multiple opportunities, Aakash Cable Network failed to appear before the tribunal or file a reply. The LCO was proceeded ex parte in January 2024, followed by competing MSO SITI Cable—named as Respondent No. 2—being proceeded ex parte in May 2025.

With no rebuttal evidence from the respondents, the tribunal relied entirely on the unrebutted affidavit and documentation submitted by DEN Networks.

Although DEN had sought to restrain SITI Cable from supplying signals to Aakash Cable Network until its dues were cleared, the tribunal declined to pass such orders. Justice Gautam reiterated that competing MSOs cannot be held liable in cases where no contractual privity exists, aligning with earlier tribunal precedents.

While DEN had claimed STB compensation based on the original value of ₹1,999 per box, the tribunal applied a standard depreciation rate of 15%—a method consistently used in past TDSAT rulings. As a result, the payable amount for unreturned equipment was recalculated to ₹9,34,450 at ₹1,699 per STB.

In its detailed reasoning, the tribunal cited multiple Supreme Court judgments on burden of proof, noting that while the initial onus lies with the plaintiff, the absence of any defence or rebuttal from the respondents left DEN’s claims uncontested.

Justice Gautam emphasised that civil matters rely on preponderance of probabilities rather than the stricter standards applicable in criminal cases.

The tribunal ordered Aakash Cable Network to pay ₹1,22,633 in outstanding subscription fees, return all 550 set-top boxes in working condition within two months, or alternatively pay ₹9,34,450 (calculated at ₹1,699 per STB) and pay 9% simple interest, pendente lite and future, until full payment is made. The petition was allowed with costs.

The ruling underscores persistent tensions in the cable distribution ecosystem, particularly regarding LCO migration, equipment recovery, and subscription fee transparency. With digital addressable systems expanding and competition intensifying across states, disputes over STBs and unpaid dues have become increasingly common before TDSAT.

Industry observers note that the order reinforces contractual discipline and provides clarity on compensation norms for unreturned equipment—a recurring pain point for MSOs operating nationwide.