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2025 Supreme(Online)(TDSAT) 27

TELECOM DISPUTES SETTLEMENT AND APPELLATE TRIBUNAL
Ram Krishna Gautam, Member
Royal Digital Cable & Communication Pvt. Ltd. – Appellant
Versus
Zee Entertainment Enterprises Ltd. – Respondent
Broadcasting Petition No. 284 of 2019



Advocates:
For the Appellants/Petitioners: Mr.Himanshu Dhawan, Mr. Abhay Dev Sharma
For the Respondents: Ms. Aanchal Tandon, Ms. Niharika Sharma

In civil proceedings, petitioner bears onus to prove case by preponderance of probabilities; failure to provide valid evidence upholds respondent's audit-based demand.

Headnote:Under Sections 14 and 14A of the Telecom Regulatory Authority of India Act, 1997, the petitioner MSO challenged a demand of Rs. 70,20,143/- raised by the broadcaster based on an audit report alleging excess subscribers and unauthorized signal transmission beyond the interconnection agreement territory. Essential facts include execution of an RIO-based agreement on 24.01.2019 for Madhya Pradesh areas, petitioner's unauthorized activation in Bhikangaon, disputed audit by Deloitte on 27.08.2019, contrasting audit by Star India, and failed requests for area expansion. The Tribunal found the audit report valid, petitioner's evidence deficient, upholding the demand on preponderance of probabilities. Key issue: Whether the Rs. 70,20,143/- demand is liable to be set aside for faulty audit calculations. Ratio: Petitioner failed to discharge onus of proof; prior interim order upheld audit validity and respondent's calculations; petitioner's affidavit improperly verified, lacking signatures; unauthorized operations admitted; civil proceedings require preponderance of probabilities, not shifting burden (citing Anil Rishi v. Gurbaksh Singh, AIR 2006 SC 1971). Petition dismissed with costs; interim orders vacated.

Table of Content
1. petition challenges broadcaster's demand based on disputed audit alleging excess subscribers and unauthorized signals. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. procedural history includes interim orders, clubbing, and framing issues on demand validity. (Para 10 , 11 , 12 , 13 , 14)
3. evidence and submissions reviewed; no proper petitioner affidavit. (Para 15 , 16 , 17)
4. preponderance of probabilities governs; petitioner fails onus, audit upheld. (Para 18 , 19 , 20 , 21 , 22)
5. petition dismissed with costs; interim orders vacated. (Para 23 , 24)

JUDGMENT

1. This Petition, under Section 14, read with Section 14A, of the Telecom Regulatory Authority of India Act, 1997 (hereinafter said to be ‘the Act’) has been filed by Petitioner-Royal Digital Cable & Communication Pvt. Ltd., Vs Zee Entertainment Enterprises Ltd., with a prayer to set aside the demand to the tune of Rs. 70,20,143/- (Rupees Seventy Lakhs Twenty Thousand One Hundred Forty-Three Only) made by Respondent, in its letter dated 01.10.2019 and 10.10.2019, with a further prayer for any other order, as deem fit, in favour of Petitioner, in the interest of justice.

2. In brief, the Petition contends that Petitioner is a new & small Multi-System Operator (MSO), having its office at Block No. 33, Plot No.09, Shanwara, New Bus Stand, Burhanpur, Madhya Pradesh – 450331, having registration, by Ministry of Information and Broadcasting, on 15.07.2016, and is engaged in the business of providing cable television services, by way of supplying signals of Free-to-Air, as well as pay channels, including supply of programmes, packages etc., to the Cable Operators. Hence, by way of this Petition, original jurisdiction of this Tribunal, vested under Section 14, and 14A, of TRAI Act, 1997, has been invoked. The present Petition, has been filed by one of the Director of Petitioner Company, namely, Mr Deepak Patidar, who is also the authorized Signatory of the Petitioner. The certificate of registration, issued by Ministry of Information and Broadcasting, dated 15.07.2016, is Annexure P/1 to the Petition.

3. The Respondent is a Company, registered under the provisions of Companies Act, 1956, and is the Broadcaster, telecasting the pay channels, in the name and style of Zee Entertainment Enterprises Ltd. The Petitioner had executed one Interconnection Agreement, dated 24.01.2019, with the Respondent, on RIO basis. This is Annexure P/2 to Petition. This agreement defines certain area of Madhya Pradesh, as the Territory of the Agreement. Since this Agreement, Petitioner has been validly carrying on its business in the said areas of Madhya Pradesh. The Interconnection Agreement, dated 24.01.2019, is Annexure P/2 to Petition. Since the Petitioner wanted to expand its area of operation, it followed up the representatives of the Respondent since February, 2019, with a request to execute Interconnect Agreement, for certain areas of Maharashtra and Madhya Pradesh. But Respondent started pressurizing Petitioner, for execution of a fixed fee Agreement, with unreasonable conditions, and ultimately, was denying the legitimate request of Petitioner of area expansion. Petitioner, merely for testing purposes, had activated test signals in the city of Bhikangaon, on 27.03.2019, and had written an email dated 28.03.2019, with a request to Respondent to execute Interconnection Agreement for that additional territories. This email dated 28.03.2019, is Annexure P/3 to Petition. This was not conceded by Respondent. Petitioner had received one email, dated 10.07.2019, having the false and frivolous allegations, pertaining to unauthorised transmission of signals of the Respondent. This email is Annexure P/4 to Petition. Since, the Respondent was not giving any heed to the legitimate request of Petitioner, Petitioner was again constrained to write one email, dated 22.07.2019, wherein Petitioner again expressed its willingness to start its business in certain areas of Maharashtra. Hence, request

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