DELHI HIGH COURT REFERRED DISPUTE TO ARBITRATION: TELECOM SERVICES - FRANCHISE AGREEMENT, NOT SUBJECT TO TDSAT JURISDICTION

The Delhi High Court in the case Fusionnet Web Services v. Yash Fiber Network observed and has held that a mere franchisee responsible for promotion of services provided by the petitioner, ergo, it does not fall under the definitions of licensee, licensor, service provider, or group of consumers as per the TRAI Act.

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The single bench of Justice Jasmeet Singh in the case held that the bar under Section 14 only applies in relation to telecommunication services and not to every agreement involving a service provider.

FACTS OF THE CASE:

The parties entered into a franchise and consultancy agreement on September 01, 2018. Clause 4 of the agreement outlined the obligations of the franchisee, which includes marketing, promotions, sales, and distribution of internet services, as well as submission of information to government departments and regulatory authorities. Clause 12 provided for resolution of the dispute through arbitration.