Seven Star Dot Com Pvt Ltd vs Zee Entertainment Enterprise Ltd

We have taken up this matter upon mentioning by the counsel for the petitioner looking who has appraised us about the urgency of the matter.

We have heard learned senior counsel appearing for the petitioner who has submitted that the disconnection notice issued by the respondent dated 26.5.2022 is under challenge in this petition. Moreover, over and above an additional demand, there appears to be one more demand by the respondent, which is under challenge, the said demand is towards the outstanding of ABS Digital from the petitioner.

It is submitted by learned senior counsel for the petitioner that looking to Annexure P-9 especially on page no.329 to the memo of this Petition which is a compliance report in Schedule - III out of total 21 parameters, the petitioner has complied with 19 parameters and 2 parameters have been complied with partially which is being reflected at page no. 332 of the memo of this Petition.

Similarly, it is further submitted by learned senior counsel for the petitioner that as far as compliance report of the finger printing is concerned, out of total 14 parameters, 11 parameters have been complied with fully and remaining 3 parameters have been complied with partially. This is evident from perusal of page no. 334 of the memo of the petition.

It is further submitted by learned senior counsel for the petitioner that so far as compliance of STBs are concerned, out of a total 11 parameters, 4 have been complied with fully and the remaining 7 parameters have been complied with partially.

Learned senior counsel for the petitioner has relied upon the page no. 336 of the memo of this petition (Annexure P-9). He has also relied upon observations of the Auditor at page no. 338 and conclusion of the Auditor’s report at page 341 and has submitted that this is not a case which requires the disconnection of the supply of the signals.

There are several other contentions raised by the learned senior counsel for the petitioner which we shall deal with on next date of hearing.

We, therefore, issue notice upon respondent. Mr. Kunal Tandon, Advocate accepts notice on behalf of the respondent and is seeking time to get instructions and file a reply. Time, as prayed for, is allowed. The reply shall be filed by the respondent on or before next date of hearing.

Counsel for the respondent has also taken this Tribunal to the Auditor’s reports, especially at page 444 to the memo of this Petition and has submitted that out of a total of 519 ground samples collected by the Auditor 31% were not found in system. Detailed demand notice was issued on 28.4.2022 and the petitioner has not paid the monthly dues for the months of April and May.

It is also submitted by the counsel for the respondent that the petitioner is supplying the signals to the customers of another MSO for which there is a demand of Rs. 79,67,560/- because those customers have not been revealed at all to this respondent and, therefore, the respondent has prayed that some amount may be ordered to be deposited by the petitioner with the respondent.

Having heard the counsel for both the sides and looking to the facts and circumstances of the case, we hereby direct the petitioner to deposit Rs. 2 Crores (Rupees Two Crores) before the Registrar of this Tribunal by the way of Bank Draft within a period of one week from today and the amount will be accepted by the Registrar of this Tribunal and will be deposited in a Nationalised Bank in a Fixed Deposit initially for a period of one year.

On the aforesaid condition, we hereby direct the respondent not to disconnect the supply of signals to the petitioner.

If the aforesaid amount is not deposited by the petitioner, the respondent is free to disconnect the supply of the signals to the petitioner.

The aforesaid order has been passed as an ad-interim relief which will be subject to modification on further hearing of the counsels for both the sides on next date of hearing.

The matter is admitted for hearing, list the petition under the head “For Directions” on 5.7.2022.