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2015 Supreme(Online)(TDSAT) 31
TELECOM DISPUTES SETTLEMENT AND APPELLATE TRIBUNAL
Aftab Alam, CJ, Kuldip Singh, J
Welcome Cable Network Pvt. Ltd. – Appellant
Versus
Taj Television India Pvt. Ltd. – Respondent
Petition No.103(C) of 2015
For the Appellants/Petitioners: Mr. Vikram Singh
For the Respondents: Mr. Upender Thakur
A party cannot avoid liabilities for contractual defaults based on common directorship when bound by a memorandum of understanding.
Headnote:The petitioner seeks renewal of a subscription agreement and a fresh agreement for general entertainment channels under the Interconnect Regulations, 2004, after previously entering into an agreement in 2013. The respondent claims the petitioner is a defaulter, asserting owes dues and is not entitled to signals as per the agreement. The Tribunal frames issues regarding the entitlement to renewal and validity of claims made by both parties. The primary questions include whether the petitioner is a defaulter and whether it can claim the signals as requested. The court’s reasoning emphasizes the significance of the memorandum of understanding binding the petitioner to pay its outstanding dues, reaffirming that mere commonality of directors does not absolve responsibility. The final judgment dismisses the petition, ordering litigation costs, indicating loss of entitlement based on the default established.
ORDER
The petitioner is seeking renewal of its subscription agreement with the respondent for the sports channels of the respondent and a fresh agreement for its General Entertainment Channels (GEC).
The petitioner is a MSO operating in the area of Greater Noida, UP. The respondent is a broadcaster.
It is the case of the petitioner that it had earlier entered into a subscription agreement with the respondent for its sports channels in the year 2013. On 13.10.2014, the petitioner wrote a letter to the respondent requesting for renewal of the said agreement as well as signals of GEC channels. The present petition was filed under clause 3.2 of the Interconnect Regulations, 2004 on 3.3.2015 as the petitioner was unable to get the signals of the respondent. As per the petitioner, it has supplied all the relevant documents and is eligible for renewal of its agreement for sports channels as well as a fresh agreement for the GEC channels of the respondent.
As per the respondent, the petitioner is a defaulter and therefore, not entitled to get the signals of the respondent in terms of Ist proviso of clause 3.2 of the Interconnect Regulations. As per the respondent, the petitioner alongwith its affiliated/associated networks namely, Neon News Pvt. Ltd., Vaishno Infocom Izynet, All in All Consultants Pvt. Ltd., Welcome Cable Network Pvt. Ltd. owes to it around Rs. 78,01,052/- as on 31.3.2015. The respondent refers to a Memorandum of Understanding (MOU) dated 31.10.2014 executed between the present petitioner and other entities having one common director namely, Mr. Kailash Gupta with Media Pro Enterprise India Pvt. Ltd., in terms of which the present petitioner has duly agreed and undertaken to clear the outstanding dues of approximately Rs. 39 lakhs upto 31.3.2014. It is further the case of the respondent that as per clause 4.15 of the duly executed agreement between the petitioner and Media Pro, the petitioner is required to clear the outstanding of its joint ventures/affiliated/associated/partner networks in different parts of cities/countries in DAS and non-DAS areas. As per respondent, in terms of this clause, the present petitioner is also liable to clear the total outstanding of its affiliated/associated networks, which has accumulated to the tune of Rs. 78,01,052/- as on 31.3.2015. In view of this outstanding, the present respondent has already issued disconnection notice under clause 4.1 of the Interconnect Regulations. The cheques issued by the present petitioner and its affiliates / associated network towards payment of outstanding subscription fees have also been dis-hounoured on presentation for encashment. The respondent also refers to letter dated 10.12.2014, sent by the petitioner, as per which it has transferred, sold, conveyed and assigned all their rights, title and interest in favour of one M/s Nova Digital & Broadband Pvt. Ltd. Vide Order dated 29.4.2015, the Tribunal framed the following issues :
(i) Whether the petitioner has made out a case for execution of subscription agreement with the respondent?
(ii) Whether the petitioner is entitled for the renewal of its subscription agreement in respect of the sports channels distributed by the respondent?
(iii) Whether the petitioner is entitled to get the signals of General Entertainment channels from the respondent? If yes, on what terms and conditions?
(iv) Whether the petitioner is a “defaulter” within the meaning of the interconnect regulations?
(v) Whether the petitioner through its director Mr. Kailash Gupta is in breach of the MOU dated 31.10.2014 executed with Media Pro?
(vi) Whether the petitioner through its director Mr. Kailash Gupta is under obligation to clear all outstanding dues in respect of its other approximate seven affiliated / associated networks/entities?
(vii) Whether the petitioner is guilty of suppression before this Hon’ble Tribunal?
Mr. Vikram Singh, counsel appearing for the petitioner submitted that there is no privity of contract between Media Pro E
