Star India Pvt. Ltd. vs Digiana Projects Pvt Ltd

The petition is admitted for hearing.  No notice need  be issued because Mr. G S Oberoi, Advocate has appeared on behalf of  respondent on advance notice.

The interim prayer which has been pressed today is for passing an order to allow the petitioner to conduct a comprehensive audit comprising of technical, commercial, forensic ground audit of the digital addressable cable system of the respondent.

According to learned counsel for the petitioner, after the audit report of the earlier audit under Regulation 15(1) was shared by the respondent, petitioner was dissatisfied and sought  response to large number of discrepancies through its e-mail dated 22.7.2021 and again on 8.9.2021.

According to petitioner, the respondent did not reply to the e-mail of 22.7.2021 and a reply on the issue of audit has been received only on 2.10.2021 which does not answer the request of the petitioner for conduct of audit for the period January 2020 onwards under Clause 15(2) of the Interconnection Regulations.

Learned counsel for the respondent has submitted on instructions that petitioner could not be given the facility of holding an audit under Clause 15(2) because the respondent can satisfy the petitioner on all the issues and also because respondent's system is under upgradation for which intimation was given even by e-mail of  14.9.2021.

After hearing both the parties on the issues of interim relief presently sought, this Tribunal is of the view that under Clause 15(2) of the relevant Regulations, petitioner is entitled to get an audit conducted.  The plea of the respondent as noted  do not justify denial of such request because it would amount to denial of a right given to a Broadcaster for protecting its commercial and other interest.  Hence, the interim prayer (1) as made in the petition is allowed.  The respondent is directed to afford all reasonable opportunity and extend full cooperation to the petitioner and the empaneled auditor entrusted with the audit to begin the audit within one week from today.  Dis-assembly of the system, if any,  must be set right within one week so that it does not interfere with the proposed audit.

It appears that through an e-mail of 28.9.2021, the respondent had intimated that a limited upgradation was already over, but in any case full cooperation requires that the auditor must be allowed to see and  experience things for himself so that he can prepare a  report or preliminary report.  If required by such report or preliminary report, further suitable directions may be issued by this Tribunal.

It goes without saying that audit should be completed as early as possible without unnecessary delay.

This Tribunal is of the view that this interim order will not prejudice either of  the parties. It may only help the Tribunal in reaching correct conclusions.  The reply to the petition may be filed within four weeks. Rejoinder, if required, may be filed within three weeks thereafter.

Post the matter under the head "for directions" on 3.12.2021