Den Network Ltd vs Sahara India Commercial Corporation Ltd

The genesis of the present dispute before this Tribunal could be traced from perusal of the agreement dated 22.4.2019 (Annexure P-1 to the memo of this petition) agreed and executed between Petitioner and respondent. Pursuant to the said agreement a payment structure was agreed in lieu of placement of TV channels of respondent on petitioner’s network.

Counsel appearing for the petitioner has vehemently submitted that the respondent is liable to make the payment of Rs. 89,32,512/- towards channel placement fees for the period running from April 2019 to April 2020 in pursuance of an agreement dated 22.4.2019 (Annexure P-1 to the memo of this petition).

It is further submitted by the counsel for the petitioner that as per clause 9 of the agreement dated 22.4.2019 (Annexure P-1), the respondent is liable to make the payment of Rs. 2.5 crores per annum excluding taxes.

It is further submitted by counsel for the petitioner that the respondent has made partial payment out of Rs. 2.5 crores p.a excluding taxes and, therefore, for securing the outstanding amount of Rs. 89,32,512/-, the petitioner has preferred the present petition. The petitioner had also served demand notices dated 1.10.2020 and 16.11.2021 upon respondent which are at Annexure P-4 and Annexure P-5 to the memo of this petition, respectively.

It is further submitted by counsel for the petitioner that demand notices issued by this petitioner contained at Annexures P-4 and Annexure P-5 have not been replied by the respondent and hence, the present petition has been preferred for the recovery of aforesaid amount along with interest @ 18% p.a. as per clause 10 of the agreement between the parties to this litigation dated 22.4.2019(Annexure P-1).

Counsel appearing for the respondent is seeking time to file the reply.

Having heard the counsels for both the sides and looking to the facts and circumstances of the case, it appears that an agreement has been entered into between the parties to this litigation dated 22.4.2019(Annexure P-1) and it has been agreed by the respondent that the respondent shall make the payment of Rs. 2.5 crores p.a excluding taxes towards “channel placement fees”.

It also appears from the facts of the case, prima facie, that out of the amount as mentioned in the memo of this petition, is due and payable for the period running from April 2019 to April 2020. Out of Rs. 2.5 crores p.a, excluding taxes, the respondent has partially paid the amount and for outstanding amount of Rs. 89,32,512/-, the present petition has been preferred to recover that amount along with interest @ 18% pa as per clause 10 of the agreement dated 22.4.2019(Annexure P-1).

Moreover, it appears that two demand notices were given by this petitioner to the respondent which are dated 1.10.2020 and another notice issued by the petitioner is dated 16.11.2021 for recovery of the aforesaid amount with interest. (Annexure P-4 and Annexure P-5 to the memo of this petition). These demand notices were not replied to by the respondent.

Even in the present Broadcasting Petition (BP), this Tribunal has issued a notice and served upon the respondent on 11.3.2021, the respondent has not filed any reply in the present BP.

In view of these facts, we hereby direct the respondent to deposit Rs. One crore before the Registrar of this Tribunal on or before 22.7.2022. This amount shall be deposited by way of Bank Draft and the Registrar of this Tribunal shall accept the aforesaid amount and shall deposit the same in a Nationalized Bank in a fixed deposit initially for the period of 12 months.

The deposition of the aforesaid amount shall not tantamount to any admission of facts by the respondent. The amount shall be adjusted towards the liability of the respondent, if any, at the time of passing of final orders in the present Broadcasting Petition and in case of no liability of the respondent, the amount shall be returned with interest to the respondent.

If the aforesaid amount is not deposited on or before 22.7.2022, the responsible officer of the respondent shall remain personally present before this Tribunal on the next date of hearing at 11.00 AM.

This matter is, therefore, adjourned to 29.7.2022.