Entitlement to incentives based on the contractual obligation to maintain Logical Channel Number (LCN) ranks was upheld, confirming that new channel insertions do not automatically displace existing ranks if obligations under the SLA are fulfilled.

JUDGEMENT

Per Justice D.N. PATEL, Chairperson.

SUMMARIUM

The present petition revolves around the interpretation of the existing legal framework governing the Logical Channel Number (LCN) and Rank. The substrata of the present dispute concerns impugning of the disconnection notice dated 02/09/2021 issued by Respondent. Furthermore, an issue pertaining to payment of incentive & other allied dues as per the terms of Subscription License Agreement (SLA) & First Addendum, is the economic crux of the present dispute.

Through the institution of the present petition the petitioner contends that it is entitled to receive incentive payments and other associated dues, as per the terms agreed upon in the Subscription License Agreement (SLA), owing to its diligent maintenance of the Logical Channel Number (LCN) and Rank of the Respondent's channels.

The Respondent, on the other hand, has completely repudiated the petitioner's assertions, alleging that not only has the petitioner violated the terms of the Subscription License

Agreement (SLA), but it has also contravened Clause 18(2) of the Interconnection Regulation, 2017. This deviation from the provisions of the SLA and the statutory regulations has consequently stripped the petitioner of the eligibility to claim incentive bonuses and other related dues.

We have taken considered view of the pleadings & oral submissions advanced in the present proceedings. This judgment has been rendered in an endeavour to provide clarity and resolution on the issues raised herein.

STATUES, RULES, REGULATIONS, LEGAL AREEGMENTS & ABBREVIATION INVOLDED

ISSUES INVOLVED

The Following Issues are involved in the Present Petitions which needs due consideration of this Hon’ble Tribunal: -

I. Whether the Petitioner is entitled to incentives from February,2021 to till date or they have failed to maintain LCN Ranks as agreed between the Parties as per Subscription License Agreement?

II. Whether the Petitioner has displaced the LCN Rank of the Channels of the respective Respondents in respective Petitions?

III. What is the Scope & Ambit of Clause 18 of Interconnection Rules of 2017?

IV. Whether the Petitioner has violated Clause 18 (2) of the Interconnection Regulations, 2017?

V. Whether Re-transmission on Blank/Vacant/Unassigned LCN would Displace the LCN Ranks of the Respondent’s Channels?

VI. Whether the petitioner has placed the TV Channels of the same genre & language consecutively as per the Telecommunication ( Broadcasting & Cable) Service Standards of Quality of Service & Consumer Protection (Addressable System) Regulations, 2017 or any other Regulations as applicable?

VII. Whether the Petitioner is entitled to marketing fee in terms of advertising and promotion agreement?

VIII. Whether the Petitioner is entitled to ‘Set-Off’ its dues against the final amount as raised by the respondent in its disconnection notices?

FACTUAL MATRIX

• On 24-02-2019, the Petitioner & Respondent in B.P. 574 of 2021 (the Parties), executed a Subscription License Agreement (SLA) (Annexure P-4) to re-transmit the signals of the Respondent’s Channels on the distribution platform of the Petitioner. The SLA was effective from 01-02-2019 for period of one year i.e. upto 31-01-2020.

• Thereafter on 01-06-2019 , the Parties executed a First Addendum to the SLA, by way of which, the parties amended the list of subscribed channels/subscribed Bouquet as defined in the SLA and revised the terms of incentive payable by Respondent as per the terms of SLA. The Addendum Agreement (Annexure P-5) came into effect from 01-06-2019 & was co-terminus with SLA.

• Petitioner in B.P. No. 574 of 2021 has laid a challenge to the ‘Disconnection Notice Dt. 02-09-2021’, (Annexure P-1). Which was issued by the Respond