Disposed

Hinduja Global Solutions Ltd. (Earlier Known as Nxt Digital Ltd.) v. Vipin Sehrawat and Anr.

TDSAT20 Jan 2016BROADCASTING PETITION/555/2015

Case brief

AI extract

What is this about?

Channel operator sought refund of security deposit and activation fees for returned set-top boxes supplied by Multi System Operator. Tribunal noted absence of specific refund clause for activation charges and insufficient evidence substantiating the claim, leaving the issue open for trial.

What did the court decide?

Direction to refund security deposit and activation charges denied due to insufficient evidence; issue left open for trial.

Hinduja Global Solutions Ltd. (Earlier Known as… — Contract and Commercial Disputes | TDSAT (2016)

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TELECOM DISPUTES SETTLEMENT & APPELLATE TRIBUNAL NEW DELHI

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Dated 20th January, 2016

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Broadcasting Petition No.444 (c) of 2015 (M.A. No. 457 of 2015)

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IndusInd Media & Communications Ltd.

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…Petitioner

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Vs.

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M/s RS Cable & Ors. … Respondents

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Broadcasting Petition No.445 (c) of 2015 (M.A. No. 458 of 2015)

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IndusInd Media & Communications Ltd.

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…Petitioner

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Vs.

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M/s OM Cable TV & Ors.

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… Respondents

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Broadcasting Petition No.555 (c) of 2015 (M.A. No. 459 of 2015)

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IndusInd Media & Communications Ltd. …Petitioner

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Vs.

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Mr. Vipin Sehrawat & Anr. … Respondent

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BEFORE:

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

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For Petitioner : Ms. Vandana D. Jaisingh, Advocate Ms. Kanupriya Gupta, Advocate for Mr. Devender Singh Thakur, AR For Respondents - R.S : Mr. Vineet Bhagat, Advocate Cable, Om Cable, Mr. Vipin Mr.Shubham Jain, Advocate Sehrawat & Anr.(Bunny Cable) and Applicants in the MAs. For Respondent –Siti Cable : Mr. Upender Thakur, Advocate Mr. V. S. Dhillon, Advocate Mr. Kunal Vats, Advocate For Respondent – Den : Mr.Gaurav Kaushik, Advocate Network

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ORDER

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These applications have been filed seeking a direction to the petitioner to

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refund to applicants/ respondents no. 1 an amount of Rs. 1100/- per Set Top Box (STB) (Rs. 500/- for each STB allegedly being the amount towards security deposit paid by respondents number 1 and another sum of Rs. 600/- per STB allegedly

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charged from the respondents no. 1/its customers as activation fee).

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The petitioner is a Multi System Operator having a pan India presence.

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Respondents No. 1 are Local Cable Operators (LCOs). The petitioner has come to

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the Tribunal challenging the migration of applicants/respondents to the network of respondent no. 3. In its interim prayer, it has, inter-alia, asked for a

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direction/order to the respondents to jointly and severally return the STBs provide by it to respondents no. 1 through respondent no.2.

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The tribunal vide its order dated 5^th November, 2015, directed the three respondents to return all the STBs to the petitioner. However, the question whether the petitioner might be liable to make any payment for the returned STBs to the respondents or to deposit an equal amount before the Tribunal, was left expressly open. The return of the STBs was to be overseen by an Advocate Commissioner that was appointed for the purpose.

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As per the report submitted by the advocate commissioner, the respondents have returned 2290 STBs.

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It is the case of the applicant/respondents that they have paid a sum of Rs.

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1100/- per STB (security deposit Rs. 500/- and Activation Charge Rs. 600/-) and

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for the STBs that have been returned by them, these charges must be refunded by the petitioner.

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As per the reply to the application filed by the petitioner, it had only

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received installation charges of Rs. 500/- per STB from the LCOs on which it has even paid the service tax and the same is not refundable. In support of its

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pleadings, the petitioner has annexed a statement titled “STB installation charge account” with its reply.

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The applicant/respondents have not provided any material to substantiate their claim except for a receipt of Rs. 100,000/- for 200 STBs in case of M/s Bunny Cable (respondent no. 1 in petition no. 555(C) of 2015). As per the petitioner, the receipt of Rs. 100,000/- in regard of Bunny Cable is also towards installation charges and already accounted for in the statement annexed by it.

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Mr. Bhagat argued that the agreement provides for a security deposit of Rs. 500/-per STB and the petitioner would not have supplied the STBs without taking this. As per clause 3.4 of the agreement between the petitioner and respondents No. 1 in all these petitions, respondent no.1 was to collect rent, installment and security deposit in respect of the Hardware/STBs from the subscribers and handover the same to the petitioner. Further in terms of the “Schedule A II. Standard Terms and Conditions”, the respondents were required to deposit at the discretion of the petitioner, an interest free and refundable security deposit of Rs. 500/- per STB. These clauses are as under:

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“3.4 The Affiliate will also collect rent, installment and security deposit for the Hardware/STB or any other amount as may be specified by the multi system operator (MSO) from the subscribers concerned from time to time and hand over the same to the multi system operator (MSO) without any deduction along with the CRF form duly filled.”

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“Schedule A

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II. STANDARD TERMS AND CONDITIONS:

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1. SECURITY DEPOSIT;

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As per the discretion of the MSO, the Affiliate shall deposit with the multi system operator (MSO) a sum of Rs.500/- (Rupees Five Hundred only) (per Set Top Box) interest free and refundable security deposit. This security deposit will only cover the cost of the set top boxes provided to him. At the time of expiration or termination of this Agreement, Affiliate shall be entitled to refund amount of the security deposit, subject to the adjustment of arrears of bills, and any other payments due from the Affiliate to the multi system operator (MSO)(emphasis supplied).

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This shall be settled within 30 days of the expiry / termination of the agreement.”

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We may note from the clause of the agreement relating to security deposit

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on which Mr. Bhagat relies, that the security deposit was at the discretion of the

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petitioner. Though the security deposit is refundable, as regards

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installation/activation charges, there is no clause for the refund of same. The only

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receipt produced by the applicant/respondents just mentions a payment of Rs. 100,000/- for 200 STBs. There is nothing to indicate that this payment was for security deposit. On the other hand the statement annexed by the petitioner in its reply to the applications indicates this to be otherwise. In view of the contrary

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stands taken by the parties on facts, we feel that evidences will be required in this regard. At this stage, in the absence of sufficient material to support the claim of

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the applicants/respondents, we do not find that a sufficient case is made for

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direction to refund any amount. We, however, leave this question open for

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determination at the time of the trial.

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The applications are accordingly disposed of.

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.……………….

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(Aftab Alam) Chairperson

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..………………. (Kuldip Singh) Member

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....………………. (B.B. Srivastava) Member

Hinduja Global Solutions Ltd. (Earlier Known as Nxt Digital Ltd.) v. Vipin Sehrawat and Anr.

Case brief

What is this about?

What did the court decide?

Hinduja Global Solutions Ltd. (Earlier Known as Nxt Digital Ltd.) v. Vipin Sehrawat and Anr.

Case brief

What is this about?

What did the court decide?

What the court decided

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