Enhance Multi Trade Pvt Ltd vs Harsh Zee Entertainment Enterprises Pvt Ltd

Heard learned counsel for the petitioner and learned counsel for the respondent for interim arrangement to be made in respect of a demand by the

respondent for an amount of Rs. 51,06,469/- as an additional demand calculated up to October, 2019 made on account of an audit report in respect of

petitioner’s system submitted in January, 2020. The audit was held sometime in November, 2019. As the order passed on the first date of

hearing and on subsequent dates such as 26.11.2020, 8.12.2020 and the last two orders of 17th and 24th December, 2020 would show, full opportunity

was given to the parties to bring their stand on this issue on records along with the documents, calculation/comparative chart and finally the account of

M/s. Reachnet with the respondent, which have been placed and perused.

There is no good material at this stage to doubt the correctness of the audit report, particularly entries at page no. 30 of the brief. The

underreporting of the subscribers as per the calculation sheet and the explanations furnished by the respondent 22.12.2020 also relate to the NSTV-

CAS.

The clerical error in calculation at page no. 2 of the calculation chart has been correctly explained by learned counsel for the respondent.

The main defence of the petitioner that the alleged under reported subscribers were reported in the system of Reachnet and payments have been duly

made for those subscribers, has not been substantiated by any reliable materials. The payment made by Reachnet are for numbers appearing in

their own system and those payments have been accounted for by the respondent as apparent from the additional affidavit filed on 21.1.2021.

At this interim stage, prima facie, this Tribunal does not find good reasons to stay the aforesaid demand made by the respondent on the basis of facts

emerging from the audit report relating to petitioner’s system, hence the earlier interim arrangements are modified. The petitioner is now

required to pay the amount of additional demand.  Let that be done within four weeks failing which respondent would be at liberty to proceed in

terms of their notice for disconnection. The above payment, if made, would be subject to final decision in this petition.

Post the matter before the Court of Registrar on 10.3.2021 for passing necessary orders and directions so that pleadings are completed and also to

make the matter ready for hearing.