Royal Digital Cable And Communication Pvt.ltd vs Star India Pvt. Ltd. & Anr

Heard learned counsel for the petitioner, learned counsel for the respondent -Star  and learned counsel for respondent-TRAI on the materials and methodology furnished by the respondent on the basis whereof audit based demands have been raised.

There is no difficulty in appreciating that the respondent is relying upon an audit held under Regulation 15(2) of the relevant Regulations of 2017.  Second proviso of that Regulation provides that if such audit reveals that an additional amount is payable to the Broadcaster, the distributor shall pay such amount along with interest etc.  From that perspective, learned counsel for the respondent has referred to various pages of the Audit Report such as Page 139 which relates to technical audit and  further to page Nos. 144, 191-194 and 602.  The short-comings found by the auditor, technical or commercial,  is one aspect but attempt made so far to find out from the audit report what additional amount is payable to the Broadcaster could not be successful. The stand of the respondent is that once short-comings and faults for the audit period or even for a date when the audit was going on, in this case February and March 2021 to which the video recordings relate could be relevant criteria for working out the correct subscriber numbers and raising additional amounts.  To what extent audit report in this case enables the respondent Broadcaster is not clear.  Learned counsel for the respondent prays for some time so that, if required,  respondent may approach the concerned Auditor for clarity and for bringing the perspective of the Auditor on record by filing an affidavit.  This Tribunal has no objection to such prayer.  Further orders for interim arrangement may be considered on the next date, on the basis of all the materials available on record.

Post the matter under the same head on 9.11.2021.

If  additional materials or affidavits are to be brought on record for the aforesaid purpose, respondent may do so within two weeks.  Reply to the same may be filed within two weeks thereafter.