INDUSIND MEDIA & COMMUNICATION LTD. Vs. SAHARA INDIA TV NETWORK

JUDGEMENT

(1.) THIS is a recovery petition for an amount of Rs. 4,43,21,568/ -. The petitioner is a Multi System Operator (MSO) engaged in the business of receiving of signals from various broadcasters of Television channels and redistribution of the same to the subscribers. Respondent No. 1 is in the business of broadcast of television channels, in particular 'Sahara One and Sahara Filmy'. Respondent No. 1 has engaged the services of respondent No. 2 in the distribution of the said channels of respondent No. 1 and to supply Integrated Receiver Decoders (IRDs) and VCs.

(2.) THE parties entered into an agreement dated 25.8.2011 for the carriage of respondent's channels being 'Sahara One and Sahara Filmy' (hereinafter referred to as "the channels") in S. Band. In consideration of the placement of channels at the agreed frequencies, respondent No. 1 (Sahara) was to pay the petitioner total carriage fee amounting to Rs. 7.50 crores per annum plus service tax at the applicable rates. This amount was to be paid in equal monthly installments of Rs. 62.50 lakhs each payable by or before 25th day of the month immediately following the month in which the payment becomes due. Petitioner, in turn, was required to pay monthly subscription amount of Rs. 4,16,667/ - exclusive of taxes to respondent No. 1. The relevant clauses of the agreement are as under: -

(3.) PLACEMENT : The MSO/Cable Operator has undertaken to carry the said Channels being Sahara One, Sahara Filmy and Firangi on the below agreed frequencies: Neighborhood Channels