Indian Cable Net Company Ltd vs Star India Pvt. Ltd.

Admit. No notice need be issued as respondent has appeared on advance notice through Mr. Gopal Jain, Sr. Advocate alongwith Mr. Siddharth Chopra, Advocate.

Petitioner has prayed for quashing / striking aside the disconnection notice dated 2.9.2021 mainly on the ground that petitioner's invoices / claims for incentives are pending with the respondent and petitioner is entitled to adjustment of the incentives. Petitioner also wants  adjustment of marketing invoice under a business arrangement with the respondent. The total amount shown as outstanding as on 1.9.2021 billing till July 2021 is approx. Rs. 20.15 crore. According to petitioner, if incentives are allowed and adjusted than the liability would be reduced by approx. Rs. 3.93 crore for the billing upto July 2021.  Petitioner wants interim protection on an undertaking that it will pay the lawful dues in three tranches and thereby pay about 20 crores by 15.11.2021. It is admitted that billing for the month of August 2021 has also become payable and the same is for Rs.5.96 crore approximately.

On the other hand,  the stand of the respondent is that since last few months, a dispute has arisen as to whether the petitioner is maintaining proper LCN in respect of the respondent and whether he is entitled to incentives.  Further the stand is that incentives in terms of the agreement become payable only when subscription invoices for that month are actually paid. For marketing invoices,  the stand is that it is not at all related to the subscription dues for which notice has been issued.

At the present stage, it will not be proper to go into disputed issues such as eligibility of the petitioner for incentives. The record discloses that invoices have been raised for the incentives at least up to the month of July 2021.  The parties, if required, may sit together and the issue of invoices relating to incentives should be settled one way or the other at an early date preferably within four weeks. As to when the incentives shall be adjusted, will be guided by the relevant provisions in the agreement which shall be considered at an appropriate stage.  However, in the interest of justice and in the larger interest of viewing public the petitioner MSO is granted an interim protection to the limited extent that it should pay the amount indicated in the impugned notice i.e. only for the billing till July 2021 in two instalments.  First should be for Rs. 10 crores before the end of September 2021 and the balance before the end of October 2021.  Last payment should be on account subject to adjustment of any lawful amount payable to the petitioner on account of incentives.

If this interim order is complied and the subsequent monthly invoices are paid within time as per agreement and past practice, the impugned disconnection notice shall not be given effect to till the next date.

Respondent is given four weeks' time to file its reply/short reply  to the main issues raised in this petition.  Rejoinder, if required, may be filed within two weeks thereafter.

Post the matter under the head "for directions" on 15.11.2021 for further directions, if required.