TDSAT directs IMCL to clear dues of ZEEL, IndiaCast to continue receiving signals

In a major relief for multi system operator (MSO) IndusInd Media and Communications Ltd (IMCL), the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed ZEEL not to disconnect signals to the MSO provided the latter clears the outstanding dues.

Posting the matter under the head “for directions” on 31 August, the tribunal directed ZEEL to not give effect to the impugned notices for disconnection if the MSO clears the dues for the period upto June’2018.

It also directed the parties to sit together for a reconciliation of accounts within one week. It further stated that the dues upto the month of June 2018 must be cleared by the MSO within 15 days from 30 July.

It also made it clear that the parties should enter into a written interconnect agreement either on mutually agreed terms or on RIO basis within three weeks.

The written inter-connect agreement had expired by efflux of time on 31 March. The tribunal noted that the broadcaster had the earlier agreement till 31 March and had been negotiating for a new agreement but without any result.

ZEEL had issued disconnection notices due to non-renewal of agreement and had also demanded dues of Rs. 8.42 crore for the period ending on 31 July.

IMCL counsel told the tribunal that the MSO has taken a clear stand that it will pay the outstanding dues upto June within 15 days and for the dues of July, it will seek accommodation from the broadcaster as per the past practice.

According to ZEEL, even if the amount for July is excluded, the dues would come to approximately to Rs. 5.86 crores. Learned counsel for INCL submitted that this amount needs to be verified because it has failed to take note of TDS which petitioner is entitled to deduct and also the amount of GST.

Meanwhile, the tribunal has directed IndiaCast Media Distribution to not give effect to the disconnection notice in case IMCL pays Rs. 35 lakhs on account, within four weeks from 30 July.

It also stated that there should be an agreement between the parties either on the basis of negotiations or on RIO basis within one month from today. It also asked the MSO to pay for the month of July by the end of August.

The tribunal noted that the MSO has enjoying signals of Turner channels even after March 2017 without having any written agreement. These channels were earlier being handled by Zee as authorised representative and since April IndiaCast is dealing for these channels.

There is some dispute as to whether the monthly fee for the interconnect facility should be Rs. 10 lakhs plus taxes or Rs. 12.5 lakhs with taxes. “We expect the parties to resolve this issue amicably and also terms of an interconnect agreement before the next date,” the tribunal said in an interim order.

The matter has been posted under the same head “for directions” on 31 August.

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