Gemini Tv Distributton Services Pvt.ltd.(erstwhile Sun Distribution Services Pvt.ltd.) vs Andhra Pradesh State Fibernet Limited

Heard learned senior counsel for the petitioner and learned counsel for the respondent at some length in respect of the issue which is under consideration since several dates.  This petition was filed on 16.12.2020 for recovery of an outstanding dues of Rs. 14.59 crores approx. It is pleaded in the petition, as highlighted by learned counsel for respondent that when subscription agreement dated 31.1.2020 was entered into between the parties for a period of 12 months effective from 1.12.2019, there was already an outstanding dues of Rs. 9.43 crores approx.. It is petitioner’s case that there was an assurance that the said outstanding shall be cleared but instead of that even the current invoices were not paid timely, leading to huge outstanding for which the petition had to be filed before this Tribunal.

After the respondent entered appearance and raised various issues, opportunity was granted for reconciliation of accounts and for settlement.

On 26.11.2021, this Tribunal noted the contentions and also the outcome of reconciliation exercise. The order runs as follows :

"Perused the contents of M A No. 336 of 2021.  Also perused the stand of the respondent in its reply and heard learned counsel for the parties.

There was a development during the pendency of this petition.  On account of reconciliation exercise, as per correspondent between the parties, an amount of

Rs. 9,83, 84,661.00 was worked out as the outstanding for the period for which dues have been claimed in this petition.  The correspondence (e-mail) contained in Annexure - A-2(Colly) to the MA discloses that the respondent proposed to clear the said amount @ Rs. 15 lakhs per month subject to consideration of the petitioner.  Since the petitioner did not agree to the mode of payment of Rs. 15 lakhs per month which would take more than five years to clear the dues, the parties are still at logger heads with some reluctance on the part of the respondent to clear the amount arrived at urgently as per desire of the petitioner.

Settlement between the parties on account of reconciliation exercise is one of the accepted modes of resolution of disputes by this Tribunal.  At times parties  have some difficulty in clearing the outstanding dues in one go.  In such a situation, this  Tribunal grants accommodation by permitting reasonable instalments.

The respondent is granted two weeks' time to reconsider its proposal to pay the liability @ Rs. 15 lakhs per month.   The reconsidered should be just and fair and in accordance with the trade practice.

Let the matter be listed under the same head on 15.12.2021. "

Thereafter, the matter has been listed on six occasions. On 3.2.2022 after hearing learned counsel for both the parties, an opportunity was granted to bring on record the relevant documents such as audited Balance Sheet including Profit and Loss Account with all annexures for the year 2020 – 2021.

On behalf of petitioner, it has been strongly urged that the dues emerging after reconciliation / settlement should be cleared in full by the respondent without any delay because payment of those dues @ Rs. 15 lakhs per month will not help the petitioner in clearing its dues and liabilities to other service providers. It was pointed out by the learned senior counsel for the petitioner that in several cases where the claim was for payment of dues arising from interconnect agreement, this Tribunal has, in most of the cases, even where the amounts have been disputed, has  passed interim orders allowing 50% of the dues to be cleared on account subject to final outcome of the petition.

On the other hand, learned counsel for the respondent has submitted that petitioner has admitted that there was an outstanding of Rs. 9.43 crores approx. in January 2020 and hence, it’s insistence that the entire dues to be cleared urgently by way of lump – sum payment is not fair and it has further been submitted that respondents are incurring loss and therefore, such heavy burden should not be created by an interim order.  He has also submitted that mention of current dues during the submissions and the information that the total outstanding is now at Rs. 16.24 crores appox. is not covered by the pleadings and the subsequent dues are not subject matter of the present petition.

After considering the relevant facts and circumstances and the stand of the parties, this Tribunal would like to record that although CPC is not strictly applicable to this Tribunal, principles of natural justice have to be observed and hence, the Tribunal would not like to go into subsequent dues and shall confine this petition only to the liability of Rs. 9.83 crores arrived at after parties have sat together. This amount is after adjusting Rs. 2 crores which was directed to be paid on account by interim order of this Tribunal dated 18.3.2021.

Some payments have been made by way of instalments of Rs. 15 lakhs per month as recorded in earlier orders. Such payments of Rs. 15 lakhs permitted under orders of this Tribunal so far, will also require to be adjusted against the liability of Rs. 9.83 crores for the period till November 2021.

Since the issues are not very complex, this Tribunal would have liked to hear the parties at length for final adjudication itself but for the present, the roster does not permit this exercise.  It will be taken up for hearing at a suitable time.  However, there is a necessity to pass an interim order in the interest of justice and equity.

Considering the amount involved and all other facts and circumstances, the respondent is directed to pay on account towards the past liabilities noticed above, an amount of Rs. 5 crores on account within two months from today.  The payment should be made in two equal instalments and it will be open for the respondent to arrange budgetary allocation or funds from the concerned authority to satisfy this order as per prevailing practice and procedure. This order is without prejudice to rights of either of the parties.

In addition, it will be open for the respondent to continue to pay towards the arrears in instalments of Rs. 15 lakhs per month until further orders.

Let the matter be listed before the Court of Registrar on 29.3.2022 for passing necessary orders and directions to make the petition ready for hearing.