Allowed

Msm Discovery Pvt. Ltd. v. Sakshi Cable Networks

TDSAT10 Oct 2014BROADCASTING PETITION/112/2014

Case brief

AI extract

What is this about?

Petitioner contractor sought recovery of subscription dues and interest from defaulting respondent MSO via arbitration. Tribunal allowed petition ex parte for principal amount with 18% interest till filing and 9% thereafter.

What did the court decide?

Recovery of Rs. 3,35,987/- plus interest @18% p.a. from 11.11.2013 to 24.2.2014 and @9% p.a. thereafter until realization.

Msm Discovery Pvt. Ltd. vs Sakshi Cable Networks — Contract and Commercial Disputes | TDSAT (2014)

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TELECOM DISPUTES SETTLEMENT & APPELLATE TRIBUNAL NEW DELHI

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Dated 10^th October, 2014

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Petition No. 112(C) of 2014

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MSM Discovery Pvt. Ltd., Gurgaon, Haryana … Petitioner

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Versus

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Sakshi Cable Netwrok, U.P. …Respondent

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BEFORE:

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HON’BLE MR. JUSTICE AFTAB ALAM, CHAIRPERSON HON’BLE MR. KULDIP SINGH, MEMBER

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For Petitioner : Ms. Upasana Mukherjee, Advocate

For Respondents

: None

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O R D E R

Kuldip Singh :

The petitioner, M/s MSM Discovery Pvt. Ltd., is a Distributor of channels. It has filed this petition against the respondent, Sakshi Cable Network, who is a Multi System Operator (MSO) as contemplated under the TRAI Regulations, for recovery of Rs. 3,35,987/- as dues of monthly subscription fees as on 11.11. 2013. The respondent did not appear

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despite service of notice and hence, the petition has proceeded against it ex parte.

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2. According to the petitioner, the respondent had entered into a

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subscription agreement with it on 10.4.2013 for a period 1.1.2013 to 31.12.2013 vide which the petitioner was to retransmit the signals of the petitioner’s channels in the areas as defined in the agreement. For this, the respondent was to pay it a monthly subscription of Rs. 18,268/(exclusive of taxes) . Thereafter, a supplementary validation form dated 2.8.2013 was executed between the parties, inter alia increasing the monthly subscription fees to Rs. 35,600/- for the period between

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1.3.2013 to31.12.2013, The subscription fees were to be paid in advance by the 15th of every month and for overdue payments beyond 10 days

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Page 2 of 5

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from the due date, interest @ 18% was to be paid. Petitioner has been raising timely invoices on the respondent in terms of the agreement but the respondent has been continuously defaulting in paying the dues. Earlier, the petitioner deactivated the signals of the respondent after following the procedure prescribed in law, on 9.1.2013 but subsequently, on the request of the respondent and upon it making certain payments, reconnected the same on 27.2.2013.

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As per the petitioner, when even after several requests made to the respondent its dues were not cleared, it served a notice on the respondent under clause 4.1 of the interconnect regulations on 1.9.2013 and finally deactivated its signals on 11.11.2013 as it received no response from the respondent.

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3. No reply is filed on behalf of the respondent to controvert the

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statements and allegations made in the petition.

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The petitioner submitted evidence by way of affidavit of Mr. Ashish Udey, Territory Sales Manager of the petitioner company, and produced the witness for examination. The witness identified the affiliation

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agreement and supplementary validation form executed between the

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parties as Exhibit P-1, copies of the invoices raised by the petitioner as

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Page 3 of 5

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Exhibit P-2, copies of notices issued under clause 4.1 and 4.3 of the regulations as Exhibits P-3 and P-4, copy of the statement of account as Exhibit P-5, and the copy of legal notice dated 12.12.2013 as Exhibit P-6.

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As per clause 2.5 of Schedule B of the agreement between the

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parties, for overdue payments beyond 10 days of the due date, an interest @ 18 % is to be paid. The clause is as under:

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“2.5 The time within which Affiliate shall be required to make payments in accordance with the terms hereof is of essence of this Agreement and any failure to do so on the part of Affiliate shall constitute a Material Breach hereunder. In addition to any other rights Distributor may have in the event of such a default, Affiliate agrees to pay interest to distributor on any sums which remain unpaid after 10 days following the date on which they are due and payable. Such interest shall accrue from said due date and shall be payable at a rate 18 % per annum for the entire period during which the default continues. Affiliate shall be liable for all reasonable legal costs and expenses incurred by Distributor in collecting any past due amounts.”

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The petition is allowed for a sum of Rs. 3,35,987/- . The office is directed to make a decree for the same. The amount will be receivable by

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the petitioner along with interest @ 18% per annum (as provided in the

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Page 4 of 5

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agreement) from 11.11.2013 till 24.2.2014, the date of filing the petition before the Tribunal. The decretal amount shall further carry interest @ 9% per annum from the date of filing of the petition till realization of the decretal amount.

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There will be no order as to costs.

(Aftab Alam)

Chairperson

(Kuldip Singh)

Member

Page 5 of 5

Msm Discovery Pvt. Ltd. v. Sakshi Cable Networks

Case brief

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Msm Discovery Pvt. Ltd. v. Sakshi Cable Networks

Case brief

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