Seven Star Dot Com Pvt Ltd vs Zee Entertainment Enterprises Ltd

Admit B P No. 443 of 2021.

Heard learned counsel for Zee Entertainment Enterprises Ltd. (ZEEL) Mr. Kunal Tandon and Mr. Diggaj Pathak, learned counsel for Seven Star

Dot Com . 3.  The dispute raised by ZEEL in B P No. 386 of 2020 is in respect of change of LCN on 28.4.2020when the Interconnect

Agreement dated 14.11.2019 had expired after the tenure of one year. The contention on behalf of ZEEL that liability to maintain LCN which

remained assigned after 14.11.2020 due to various extensions granted and accepted should also be for one year in terms of the Regulations and similar

provisions in the old agreement.

However, on the last date i.e. 4.5.2021,this Tribunal did not grant any interim relief to ZEEL and left the parties to negotiate in respect of LCN as

well as the fresh agreement.

Since no settlement could be arrived, the disconnection notice dated 15.5.2021 was served upon the MSO Seven Star Dot Com Pvt. Ltd. which has

filed B P No. 443 of 2021 against that notice.

In the disconnection notice, two issues do not require any detailed consideration. The outstanding payable for March 2021 appears to have been

paid substantially, if the TDS amount is adjusted. The dues for April 2021 did not become payable when the notice was issued on 15.5.2021.Â

Hence, at this stage, the parties are left free to reconcile the accounts and after such reconciliation the dues upto April 2021 which is now payable,Â

should be paid by the MSO within ten days from today.

The other issue is by way of an allegation that the MSR for the month of April 2021 is not system generated and may have been tampered. For

this issue, if ZEEL is so advised, it may take required steps and pursue the issue in subsequent audit of the petitioner’s system in accordance with

law.

The third issue in the notice is of non renewal/non-signing of RIO Version-I of 2021 available on the website of ZEEL. So far as this issue is

concerned, on account of non delivery of final judgement by the Hon’ble Bombay High Court in matters filed against the Tariff Order

Amendment 2020 of TRAI, the legal situation continues to be fluid. The MSOs want RIO based on the amendment of 2020 but the same is not

being enfored by TRAI because of certain orders passed by the Bombay High Court. In such a situation, the MSO has either to accept the practice

of agreement by way of extension lettes in terms of the old agreement or it has to sign RIO Version-I of 2021 based upon Tariff Order of 2017.

At present, the MSO, Seven Star Dot Com Pvt. Ltd. has pleaded in B P No. 443 of 2021 that it is not in favour of agreement on the basis of RIO

Version â€" I of 2021. Therefore, in order to get supply of signals from ZEEL, it will have to take a firm stand within one week if it wants to

continue with the agreement on the basis of extension which infact has continued after 14.11.2020. In case, it opts for this course, then the LCN

which stood allocated on 14.11.2020 shall continue atleast for one year form that date. Because the same has been altered already, the MSO will

be under obligation to restore the said LCN within one week. In case the MSO Seven Star chooses to discontinue with the extension offer, then in

order to get continued supply of signals from ZEEL within one week from today, it will have to execute an agreement as per RIO Versions â€" I of

2021 which will be subject to the final judgement that may be passed by the Bombay High Court. In case, Seven Star chooses neither to get the

extension of agreement or to enter into a new agreement as per RIO Version-I, then it will not have any legal claim to get the signals from the

respondent. It is clarified that if it chooses for the new agreement as per RIO then it will be entitled to come out of the interim arrangement which

continued since 14.11.2020 in respect of LCN and the LCN will be treated to have been reallocated when the new RIO agreement is executed.

The interim arrangement will be governed by this order which has been passed considering the facts of both the cases. After considering further

developments, the matter may be finally disposed of in terms of this order. The disconnection notice shall not be given effect to till the next date in

case the issues relating to LCN and the agreement are for the time being resolved in terms of this interim order.

Parties will complete the pleadings by filing reply within four weeks, if required, and by filing rejoinder within two weeks thereafter, if required.

Post the matters under the head “For Directionsâ€​ on 19.7.2021.