Hathway wins STB recovery case as TDSAT directs cable operator to pay Rs 2.64 lakh

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed West Bengal-based local cable operator Jagat Gouri Cable Net to return 194 set-top boxes (STBs) and accessories belonging to Hathway Digital Private Ltd or pay Rs 2.63 lakh, along with simple interest of 9% per annum, bringing an end to a dispute over the alleged swapping of Hathway equipment with that of a competing multi-system operator (MSO).

In a judgment dated August 20, 2026, TDSAT member Justice Ram Krishna Gautam allowed the petition filed by Hathway Digital against Jagat Gouri Cable Net and competing MSO Saptak Digital Pvt Ltd. The tribunal directed Jagat Gouri Cable Net to return the 194 STBs in good and working condition within two months of the judgment. 

Alternatively, it has to deposit Rs 2,63,840 with the tribunal, calculated at a depreciated value of Rs 1,360 per STB, along with 9% annual simple interest from the date of the petition until payment.

The ruling is significant for the cable distribution ecosystem as it reinforces contractual and regulatory obligations governing the movement of STBs when a local cable operator (LCO) shifts its service relationship from one MSO to another.

Dispute over 194 STBs

Hathway Digital had approached TDSAT under the Telecom Regulatory Authority of India Act, 1997, seeking restraint against Jagat Gouri Cable Net from swapping Hathway's STBs with equipment belonging to Saptak Digital without settling outstanding dues and returning Hathway's equipment.

Hathway had initially sought the return of 194 STBs in working condition or payment of Rs 2,92,800, calculated at Rs 1,600 per STB. It had also sought an injunction preventing Saptak Digital or any other competing MSO from providing signals to Jagat Gouri Cable Net until the equipment was returned.

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Hathway Digital, a wholly owned subsidiary of Hathway Cable and Datacom Ltd, is engaged in retransmission of cable television signals to broadcasters across India. The company's cable television business was assigned to Hathway Digital from April 1, 2017, following an internal restructuring.

Jagat Gouri Cable Net, represented by proprietor Ashok Bera, operates as an LCO in Hooghly, West Bengal, while Saptak Digital is a competing MSO based in East Bardhaman, West Bengal.

Hathway's case

According to Hathway, Jagat Gouri Cable Net had requested its signals and services for retransmission to subscribers in the Hooghly area. The two parties subsequently entered into a Model Interconnect Agreement (MIA).

As part of the arrangement, Hathway supplied 377 STBs and viewing cards to the LCO. The agreement was valid from August 1, 2019, to August 31, 2020.

Hathway later received information that Jagat Gouri Cable Net had allegedly begun replacing its STBs with equipment belonging to Saptak Digital without following the prescribed regulatory process.

The company alleged that the LCO had swapped its STBs without providing the three-week prior notice required under clauses 6.1 and 6.2 of the applicable interconnection regulations. Hathway also told the tribunal that the STBs remained its property and had not been returned despite an interim order.

LCO disputed MSO-LCO relationship

Jagat Gouri Cable Net denied Hathway's claims and argued that the relationship between the parties was not that of an MSO and LCO.

The LCO maintained that it had merely acted as an agent or facilitator for Hathway, helping connect new subscribers and facilitating recharges. According to its submission, customers were able to recharge services directly online or through kiosks operated by the LCO, for which it received commissions.

The respondent argued that Hathway retained direct control over subscribers, including their activation, deactivation and reconnection, and therefore disputed the allegation that it had migrated Hathway subscribers to another MSO.

Jagat Gouri Cable Net also contended that Hathway had not actually handed over the STBs to it. Instead, it claimed the equipment was supplied from Hathway's local office for installation at subscriber premises and that the LCO merely facilitated the process. On this basis, it questioned both its liability and TDSAT's jurisdiction over the dispute.

Hathway, however, maintained that the LCO had entered into the MIA electronically through its portal and had accepted the agreement's terms. It said the online contract was legally valid and supported by a certificate under Section 65B of the Indian Evidence Act.

The company further submitted that its portal gave LCOs access to functions including activation and deactivation of subscribers, packaging changes, channel selection and online payments.

Tribunal cites MIA provisions on STB replacement

A key element in TDSAT's decision was clause 9.6 of the Model Interconnect Agreement.

The clause provides that an LCO cannot replace an MSO's STBs with those of another MSO without receiving a request from subscribers in the relevant territory through application forms for returning existing STBs and obtaining new connections. The new STBs can be activated only after the new MSO records the relevant customer application details in its subscriber management system.

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Hathway alleged that Jagat Gouri Cable Net had replaced its STBs and viewing cards with Saptak Digital's equipment without complying with these requirements.

Saptak Digital, for its part, denied any liability. It argued that there was no contractual relationship between it and Hathway and that it had neither received nor possessed Hathway's STBs.

The competing MSO said it had initially approached Jagat Gouri Cable Net to offer its services, but no understanding was reached at that stage because the LCO was already receiving a feed from another MSO. It subsequently undertook door-to-door marketing, following which, it said, the LCO began taking its feed in response to consumer demand.

Case proceeded ex parte

TDSAT had framed two principal issues in February 2024: whether Hathway was entitled to recover the STBs and viewing cards or their cost, and whether Jagat Gouri Cable Net had migrated to Saptak Digital and, if so, whether the migration complied with TRAI's interconnection regulations.

Hathway filed evidence through an affidavit along with the required Section 65B certificate. The respondents were given an opportunity to present their evidence but did not avail themselves of it.

The tribunal recorded that the counsel for the respondent subsequently sought discharge because of a lack of instructions or communication from the client. On September 9, 2025, the matter was therefore proceeded with ex parte.

TDSAT noted that the proceedings before it were civil in nature and that the standard for deciding the matter was the "preponderance of probabilities", rather than the stricter burden applicable to criminal proceedings.

Electronic agreement accepted as evidence

The tribunal found that the interconnection agreement had been sufficiently established through Hathway's affidavit evidence and the Section 65B certificate relating to documents generated through online transactions.

TDSAT said the agreement submitted by Hathway had been proved as an exhibit and established that Jagat Gouri Cable Net had executed the interconnection agreement with Hathway.

The tribunal also noted that although Hathway had supplied 377 STBs, its actual pleading and claim in the petition concerned 194 STBs. It therefore limited the relief to those 194 units rather than awarding the larger number referred to in Hathway's written submissions.

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TDSAT rejects full replacement cost, applies depreciation

Hathway had sought Rs 1,600 per STB, amounting to Rs 2,92,800 for 194 units.

TDSAT, however, held that the depreciated value should be considered because the STBs were electronic equipment and more than six years had elapsed since the petition was filed. Applying depreciation of 15% per annum, the tribunal arrived at a value of Rs 1,360 per STB.

For 194 STBs, this translated into Rs 2,63,840.

The tribunal additionally awarded simple interest at 9% per annum, citing the prevailing financial and fiscal conditions of the cable and television business.

Order against LCO, not competing MSO

The final decree was issued against Jagat Gouri Cable Net. TDSAT directed the LCO to return all 194 STBs, along with their accessories, in good and working condition within two months.

If it fails to do so, the LCO will have to deposit Rs 2,63,840 with the tribunal, along with 9% annual simple interest calculated from the date of the petition until the date of payment. The tribunal said the amount would be recoverable through execution proceedings in case of non-compliance.

The tribunal did not fasten the liability on Saptak Digital. It referred to its previous decisions holding that, in the absence of privity of contract between a competing MSO and the original MSO, liability for an LCO's obligations cannot automatically be imposed on the competing MSO.

The ruling thus places the responsibility for the disputed equipment squarely on the LCO and underscores the importance of following the prescribed process when an LCO changes its MSO relationship or replaces subscriber equipment.

The judgment was delivered by Justice Ram Krishna Gautam, member, TDSAT, on August 20, 2026.