Acn Digital Pvt. Ltd vs Zee Entertainment Ltd

Having heard counsel for both the sides and looking to the facts and circumstances of the case, it appears that this Tribunal had earlier passed an order dated 22.10.2021.  Paragraphs 8 and 9 thereof reads as under: -

“Having heard learned counsel for both the parties and on going through the relevant materials, at present stage only a prima facie finding is recorded that petitioner has at best raised some doubts as to the manner of calculating and arriving at the impugned demand of Rs.13.21 crores (appox.) which has been demanded as additional licence fee. On the basis of audit under Regulation 15(1) held at the instance of the petitioner, it is difficult to discredit the audit held under Regulation 15(2). At this stage it will not be feasible or proper to go through both 7 the audit reports and find out whether the differences can be reconciled or not or whether one will affect the other and to what extent. Such exercise may have to be undertaken at the stage of final hearing. But prima facie no reasons are found to discredit audit report submitted by M/s Deloitte. This report being a result of audit under Regulation 15(2) of the Interconnection Regulations can be made the basis for raising additional demands which should be reasonable and transparent. Audit for 2019 under Regulation 15(1) cannot over-ride the Audit held later under Regulation 15(2).

Considering the interest of justice and the aforesaid discussions and finding, the petitioner at this stage is granted limited relief of stay of only half of the additional licence fee which has been challenged in this petition. On the touchstone of fairness and probabilities, it will be in the equal interest of both the parties that 50% of the impugned demand of Rs.13.21 crores(approx.) shall be paid by the petitioner to the respondent within three months in three equal monthly installments. In case of failure to pay any of the installments the respondent would be entitled to give effect to the disconnection notice and take suitable steps in accordance with law to realize the unpaid installments. It goes without saying that the payment shall be on account and subject to final result of this petition.”

(Emphasis Supplied)

Counsel for the petitioner in Execution Application No. 1 of 2022 submitted that petitioner of B.P. No. 87 of 2021 had challenged the aforesaid order of this Tribunal dated 22.10.2021 in Writ Petition bearing No. MP No. 4130 of 2021 which was dismissed by Hon’ble Madhya Pradesh High Court vide order dated 1.12.2021.

It is submitted by counsels for both the sides jointly that a review petition being R.A. No. 4 of 2021 was also preferred by the petitioner of B.P. No. 87 of 2021 before this Tribunal and the same has been disposed of as withdrawn vide order dated 15.12.2021.

It is submitted by counsel for ZEE Entertainment Limited that despite the aforesaid order of this Tribunal dated 22.10.2021 and despite the fact that Writ Petition filed before Hon’ble Madhya Pradesh High Court was also dismissed and despite the fact that review petition preferred before this Tribunal for reviewing the order dated 22.10.2021 was also disposed of as not pressed and MSO – ACN Digital Pvt. Ltd. has not deposited the 50% of the impugned demand of 13.21 Crore as mentioned in the paragraph 9 of the order of this Tribunal in B.P. No. 87 of 2021 vide order dated 22.10.2021.

Having heard the counsels for both the sides and looking to the facts and circumstances of the case, we hereby direct a MSO – ACN Digital Pvt. Ltd. who is the petitioner in B.P. No. 87 of 2021 to deposit Rs. 6.65 Crores on or before 7.7.2022 with the Registrar of this Tribunal.  The aforesaid amount shall be deposited by the petitioner and the same will be accepted by the Registrar of this Tribunal and the same shall be deposited in a Nationalized Bank in a fixed deposit initially for six months.

This matter is adjourned to 11.7.2022 under the heading “For Directions”.

Wherever reply is filed, rejoinder is also permitted to be filed.