Zee Entertainment Enterprises Ltd vs Acn Digital Pvt Ltd

Admit. No notice need be issued because on advance notice, Mr. Saket Singh, Advocate has appeared for respondent no. 1 and Mr. Tushar Singh,

Advocate for respondent no. 2.

On hearing the submissions of learned counsel for the petitioner for interim relief, it appears that the petitioner has an apprehension that respondent no.

2 has taken over or is in the process of taking over the business and assets of respondent no. 1 and has started distributing petitioner's signals to the

affliates of respondent no. 1 without seeking permission of the petitioner required under the interconnect agreements between the petitioner and the

respondents individually, especially when ACN is having outstanding dues payable to the petitioner.

The main prayer in this petition is against respondent no. 1 for a decree of Rs. 3.08 crores approx. on account of non payment of monthly subscription

fee for the period till December 2021.

Learned counsel for the petitioner has submitted that in a screen shot of 19.01.2022 available at page 281 of the brief, logos of respondent no. 1 as

well of respondent no. 2 are visible and on that basis, he submits that respondent no. 2 is providing signals of the petitioner's channels to respondent no.

1 although it is contrary to the terms of the agreement.

Learned counsel for respondent no. 2 prays for some time to file reply and explain the apprehension and allegations noted above. On instructions

he submits that respondent no. 2 has not taken over the business and assets of respondent no. 1 nor it has any plans to do so in the near future.

On behalf of respondent no. 1 also a similar stand has been taken that it has not sold its business and assets to respondent no. 2 nor there is any

merger or sale planned in the near future.  Respondent no. 1 has also taken a stand that it is not taking petitioner's signals from respondent no. 2

or any other MSO.

A common stand of respondent no. 1 and respondent no. 2 is that on account of information in the market, some affiliates LCOs of petitioner are

migrating and shifting their business association to other MSOs including respondent no. 2.

Respondent no. 1 has also taken a stand that for the dues till November 2021 it has ascertained its liability to be Rs. 1.25 crores approx. which it

shall explain in its reply and the liability to pay the invoice for the month of December 2021 has still not matured but it shall be paid as and when it

becomes due for payment and surely by 10.2.2022.

As prayed, four weeks' time is granted to the respondents for filing reply. If required, rejoinder may be filed before the next date.

Post the matter under the head ""for directions"" on 10.3.2022.

As noted above, respondent no. 1 should pay the admitted approximate amount for dues till November 2021 within one week and dues against the

invoice of December 2021 by 10.2.2022.

In view of firrm stand by respondent no. 1 and respondent no. 2 the only further interim direction to take care of the petitioner's apprehension of

piracy is to direct respondent no. 1 to ensure that its hardware and STBs are not used by any other MSO and definitely not for committing piracy for

petitioner's signals.