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Msm Discovery Pvt. Ltd v. Sumit Cable Network

Msm Discovery Pvt. Ltd v. Sumit Cable Network

(Telecom Disputes Settlement And Appellate Tribual, New Delhi)

Petition No. 12(C) Of 2014 | 24-12-2014

1. This is a recovery petition for an amount of Rs. 4,06,017/- allegedly payable by the respondent for availing the signals of the petitioner.

2. The petitioner is a company under the Indian Companies Act, 1956 and is a broadcaster in terms of the Telecommunication (Broadcasting and Cable Services) Interconnection Regulation, 2004 (as amended from time to time). The respondent is a MSO, who, as per the petitioner, was receiving its signals.

3. On 4.5.2012, a subscription agreement was entered into between the parties. The term of the agreement was from 1.1.2012 to 31.12.2012. (A copy of the agreement is available from pages 15 to 32 of the paper book).

4. As per the agreement, the respondent was to pay Rs. 43,692/-(exclusive of taxes) per month as subscription fees to the petitioner.

5. Though the agreement between the parties came to an end on 31.12.2012, it is the contention of the petitioner that it was providing signals to the respondent till 25.9.2013 and the respondent was retransmitting the same to its associated LCOs and also to the ultimate subscribers. The pleadings of the petitioner in this respect are as under :

"4...... Prior to deactivation, the respondent retransmit the signals of the petitioner to its associated local cable operators (LCOs) and also to the ultimate subscribers after receiving them from the petitioner. For the same, the respondent is bound by the provisions of the Interconnect Regulations and the express provisions of the subscription agreement entered into between the parties alongwith all other relevant and applicable laws and regulations in India."

6. As per the petitioner, it was raising invoices on the respondent diligently and timely per month. However, the respondent continuously defaulted in paying the due subscription fees. The petitioner has made several requests to the respondent to clear its outstanding dues but to no avail. Left with no other option, the petitioner served a notice dated 1.9.2013 under clause 4.1 of the Interconnect Regulations and also a public notice of disconnection in the newspapers on 30.08.2013, in terms of the clause 4.3 of the Interconnect Regulations. The petitioner was constrained to finally deactivate its signals to the respondent on 25.9.2013.

7. The petitioner has attached the Statement of Accounts (SOA) as Annexure P-6(pages 56-57 of the paper book) with the petition. It is seen from the SOA that there is an outstanding of Rs. 4,06,017/- as on 25.9.2013. It is also seen from the SOA that the respondent was making payments to the petitioner even after the expiry of the agreement and the last payment was made on 28.5.2013 vide cheque dated 21.5.2013, which, subsequently, was not honoured.

8. In support of his case, the petitioner adduced evidence by way of an Affidavit of Mr. Ashish Udey. The witness exhibited a copy of the agreement as Exhibit P-1(at pages 15-32 of the paper book), copies of the invoices raised by the petitioner as Exhibit P-2(at pages 33 to 50 of the paper book), copy of the public notice dated 30.8.2013 under clause 4.3 of the regulation as Exhibit P-3 (at pages 51-53 of the paper book) and notice under clause 4.1 of the regulation as Exhibit P-4 (at pages 54-55 of the paper book). The witness further stated as under :

"8. I say that the petitioner finally deactivated the signals of the respondent on 25.9.2013 as the respondent failed to make the requisite payment.

9. I say that the outstanding balance of the respondent to the petitioner as on 25.9.2013 is Rs. 4,06,017/-. The respondent has failed to disburse the subscription fees which is an admitted debt and has been duly intimated to and acknowledged by the respondent. A copy of the system generated statement of account maintained by the petitioner qua the respondent is exhibited herewith and marked as Exhibit P-5.

10. I say that since the respondent failed to make the requisite payment, the petitioner, through its advocate, sent a legal notice dated 14.10.2013 to the respondent which was duly received by the respondent. A copy of the legal notice dated 14.10.2013 alongwith its postal receipt is exhibited herein and marked as Exhibit P-6(at pages 58 to 61 of the paper book).

11. I say that the petitioner had been supplying continuous and uninterrupted signals of its channels to the respondent prior to 25.09.2013."

9. No one appeared for the respondent despite service of notice nor was any reply filed on behalf of the respondent to controvert the statements and allegations made in the petition. The petition, therefore, proceeded ex-parte.

10. The petitioner is also claiming interest @ 18% per annum. In this regard, clause 2.5 of the Schedule "B" of the agreement provides as under :

"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."

11. In the aforesaid facts and circumstances of the case, the petition is allowed for an amount of Rs. 4,06,017/- alongwith interest @ 18% from 25.9.2013 till the date of filing of the petition i.e. 16.01.2014 and further @ 9% till the realization of the amount.

12. The Registry is directed to make a decree accordingly.

13. Since the petition was proceeded ex-parte, there shall be no order as to costs.

Advocate List
  • For Petitioner : Azmat H. Amanullah, Advocate
Bench
  • AFTAB ALAM, CHAIRPERSON
  • KULDIP SINGH, MEMBER
Eq Citations
  • LQ/TDSAT/2014/71
Head Note