Delhi High Court: Telecom Dispute Between RI Networks and World Phone Sent to TDSAT

Quick Summary: The Delhi High Court decided that the disagreement between RI Networks Private Limited and World Phone Internet Services Private Limited should be handled by the Telecom Disputes Settlement and Appellate Tribunal (TDSAT), not the regular court. This decision is about an agreement that supposedly impacted thousands of customers.

Background of the Case

RI Networks Private Limited, a top-level Internet Service Provider, filed a lawsuit against World Phone Internet Services Private Limited and its key people, including directors and a parent company. The main issue is an agreement made on September 11, 2023, aimed at merging operations and sharing resources like infrastructure and staff.

Failed Settlement Attempts

The case was first heard on November 10, 2025, where the court suggested they try to resolve the issue peacefully. However, despite trying, they couldn't agree, leading to a detailed hearing.

The Dispute Details

• Operational Merger Agreement: RI Networks and World Phone Internet Services agreed to share resources, which included moving employees and IT equipment to a shared office in New Delhi.
• Termination and Demands: On October 19, 2025, RI Networks found out about hidden debts. World Phone Internet Services then ended the agreement and demanded about ₹2.01 crore.
• Disruption Claims: RI Networks claimed that their employees were stopped from entering the shared office and that their network was disrupted, affecting thousands of customers.

Court's Decision

Judge Purushaindra Kumar Kaurav decided that the case should be handled by TDSAT due to the nature of the disagreement between service providers and its effect on customers. The court emphasized:

"The dispute... affects customers, and if the numbers given by the plaintiff are to be accepted, a substantial number of them."

Why TDSAT?

The court ruled that TDSAT is the right place to handle this case under the Telecom Regulatory Authority of India Act, 1997. This decision was based on:

• The nature of the disagreement involving service providers.
• The large impact on customers, with about 19,000 users affected, including hospitals and schools.

Arguments Considered

• RI Networks' Stand: They argued that the regular court should handle the case, claiming that TDSAT cannot decide on claims against people who are not service providers involved.
• Court's Rejection: The court found that the involvement of key people in the disagreement did not stop TDSAT from being the right place to handle it.

Summary of Verdict

The Delhi High Court dismissed the lawsuit, directing the parties to TDSAT to resolve the issue. This decision highlights the specialized role of TDSAT in handling telecom disputes, especially those affecting a large number of customers.