Featured image for Supreme Court Judgment dated 07-01-2019 in case of petitioner name Digi Cable Network (India) Pvt vs Union of India & Ors.
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Supreme Court Upholds Government’s Power to Deny Security Clearance for Cable Operators

The Supreme Court of India recently ruled in Digi Cable Network (India) Pvt. Ltd. vs. Union of India & Ors., affirming the government’s authority to deny security clearance to Multi-System Operators (MSOs) under the Cable Television Networks (Amendment) Rules, 2012. The ruling upheld the cancellation of permission for the appellant due to a lack of security clearance from the Ministry of Home Affairs.

The judgment clarifies that the government has the discretion to refuse security clearance on national security grounds without disclosing the specific reasons to the affected party.

Background of the Case

The appellant, Digi Cable Network (India) Pvt. Ltd., was granted permission to operate as a Multi-System Operator (MSO) under the Digital Addressable System (DAS) in 2012. However, this permission was later revoked by the Ministry of Information & Broadcasting in 2014 after the Ministry of Home Affairs denied security clearance to the company.

The appellant challenged this revocation before the Bombay High Court, which dismissed the writ petition, holding that the cancellation was legally justified. The appellant then approached the Supreme Court, contending that they were not given a proper opportunity to be heard before the cancellation.

Key Legal Issues

  • Whether the denial of security clearance without a specific explanation violated principles of natural justice.
  • Whether the government was obligated to provide detailed reasons for denying security clearance.
  • Whether the appellant had the right to challenge the government’s national security concerns.

Arguments by the Appellant (Digi Cable Network)

  • The cancellation of the license was arbitrary as the appellant was not provided a hearing before the revocation.
  • The government failed to disclose the exact grounds for denying security clearance, violating their right to a fair hearing.
  • The appellant had been operating legally since 2012, and revoking their license caused financial loss and business disruption.

Arguments by the Respondents (Union of India & Ministry of Information & Broadcasting)

  • The permission to operate as an MSO was subject to security clearance from the Ministry of Home Affairs.
  • Under Rule 11C of the Cable Television Networks (Amendment) Rules, 2012, the government has the right to revoke permission if security clearance is denied.
  • The security clearance denial was based on confidential national security concerns, which could not be disclosed.

Supreme Court’s Observations

The Supreme Court, comprising Justice Abhay Manohar Sapre and Justice Indu Malhotra, ruled in favor of the government, holding that the cancellation of permission was justified under Rule 11C of the 2012 Rules.

The Court emphasized:

  • “The grant of permission to operate as an MSO is subject to obtaining security clearance from the government.”
  • “The denial of security clearance is not subject to judicial review where national security concerns are involved.”
  • “The State is not obligated to provide specific reasons for denying security clearance when it pertains to national security.”

Reference to Prior Precedents

The Supreme Court relied on its earlier judgment in Ex-Armymen’s Protection Services Pvt. Ltd. vs. Union of India (2014), which held:

  • “National security matters are not open to judicial review in the absence of malafide intent.”
  • “The executive branch has the exclusive domain to assess security risks.”

Final Verdict

The Supreme Court dismissed the appeal and ruled:

  • The cancellation of permission was lawful and in conformity with Rule 11C of the Cable Television Networks (Amendment) Rules, 2012.
  • The government was not required to disclose national security concerns to the appellant.
  • The appellant was given the liberty to apply afresh for permission, subject to security clearance.

Legal and Industry Implications

  • The ruling reinforces the government’s power to deny security clearance based on national security considerations.
  • It establishes that licensing for broadcasting and cable networks is subject to continuous scrutiny by security agencies.
  • The decision may impact foreign and domestic investments in the broadcasting sector, as security clearances remain an essential requirement.

The Supreme Court’s judgment upholds the principle that national security concerns outweigh commercial interests, reaffirming the government’s discretion in granting or revoking security clearances.


Petitioner Name: Digi Cable Network (India) Pvt. Ltd..
Respondent Name: Union of India & Ors..
Judgment By: Justice Abhay Manohar Sapre, Justice Indu Malhotra.
Place Of Incident: India.
Judgment Date: 07-01-2019.

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