The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has dismissed Bharat Sanchar Nigam Limited?s (BSNL) demand for Rs 13.6 million as interconnection usage charges against Tata Communications.

The tribunal said, “We are of the opinion that the demand raised prior to period October 2007 will not be admissible. Further, in view of the rival contentions about the different bills after October 2007, there is a need for reconciliation of accounts between Tata Communications and BSNL for the period November 2007 to October 2009.?

Interconnection user charges are paid by one operator from whose network a call or SMS originates to the other on whose network that communication ends.

The tribunal also said that BSNL cannot raise the bills for interconnection usage charges (IUC) for a period of more than three years as per the Limitation Act.

BSNL had inked an agreement with Tata Communications in September 2004 to get interconnected. It had raised three bills in 2010 for the periods from September 2005 to October 2007, and from November 2007 to October 2009.

A dispute arose after BSNL had allegedly without any advance intimation issued a demand note of Rs 13.6 million, which was refuted by Tata Communications.

Tata Communications had pointed out that payments had been settled on a monthly basis for the period July 2005 to October 2009 and that the same was accepted by BSNL.