IHC rejects appeal against PTA order

A cellular firm had moved court against refund order of over Rs2b to customers

ISLAMABAD:

The capital's high court has dismissed an appeal filed by a cellular company against an order of the Pakistan Telecommunication Authority (PTA) to reimburse to its customers a whopping amount of over Rs2 billion deducted by it on account of service and other charges.

A single-member bench of the Islamabad High Court (IHC) comprising Justice Miangul Hassan Aurangzeb has issued a 6-page written order on the appeal filed against the PTA's August 2019 order.

On August 30, 2019, the PTA directed the telecom operator to refund Rs2,028,038,584/- collected from customers on account of service/maintenance/cards/operational fee charges between April 26, 2019 to July 12, 2019.

Cellular mobile operators, including the company, had been charging Rs10 from every customer each time he purchased and used a prepaid card valuing Rs100.

On May 3, 2018, the Supreme Court took suo moto notice against unreasonable and high amounts of tax and other charges deducted on topping up or charging of the balance on the use of prepaid cards.

The SC, in its interlocutory order dated June 11, 2018 expressed its prima facie view that the service charges could not have been validly and legally imposed on the amounts loaded by users of mobile phone devices.

Subsequently, vide its order dated October 16, 2018, the SC extended the operation of its earlier order with the modification that "the same relief is also extended to the postpaid consumers of the cellular companies."

The appellant asserted that due to the said orders, the charging of administrative and service fee by the appellant at the rate of 10% was withdrawn with effect from July 13, 2018.

The fact that cellular mobile operators had stopped imposing service charges was recorded by the SC in its order dated March 27, 2019. On April 24, 2019, the apex court, by way of a short order, disposed of the suo motu case.

However, after disposing of the case, some cell phone companies including the appellant restarted deducting the charges. In its appeal, the company contended that with the vacation of all interim orders, there was no impediment on cellular mobile operators in collecting maintenance and service charges.

The PTA on April 29, 2019, asked the appellant to clarify its position.

The authority on August 30, 2029 directed the appellant to refund to its customers Rs2,028,038,584/- charged collected from customers between April 26, 2019 and July 12, 2019 on account of service and other charges. The company later challenged the PTA order in the IHC.

The IHC, however, dismissed the appeal as not maintainable.