INX News Pvt. Ltd. directed to pay outstanding dues of Rs 95.76 lakh to Manthan Broadband Services Pvt. Ltd.

Telecom Disputes Settlement and Appellate Tribunal (TDSAT): While allowing a petition filed by Multi System Operator/ Cable Operator Manthan Broadband Services Pvt. Ltd., TDSAT directed INX News Pvt. Ltd. to pay to Manthan Broadband Services Pvt. Ltd. outstanding dues of Rs 95.76 lakh. Earlier, Manthan Broadband Services Pvt. Ltd. had filed a petition before the TDSAT seeking recovery of placement charges amounting to Rs. 95,76,798/-along with interest at the rate of 24% per annum from the INX News Pvt. Ltd. for the placement of its channel namely “INX News” across the areas covered by the headend of the petitioner. Manthan Broadband Services Pvt. Ltd. had alleged in the petition that Fifth Avenue Media of Mumbai acting on behalf of INX News had agreed to pay a sum of Rs 1.15 crore for the placement of the channel for the period 01.06.2011 to 31.05.2012. It was further alleged that though the channel was placed as per the agreement, INX News made a payment of Rs 31.07 lakh only and has not made any further payment to Manthan Broadband Services Pvt. Ltd. After perusal of relevant documents and hearing both the parties, TDSAT observed, “we are convinced that Respondent No. 2 (Fifth Avenue Media) was acting on behalf of Respondent No.1 (INX News Pvt. Ltd.) and there was an agreement between the parties for placement of the channel of Respondent No. 1 on the network of the petitioner.”  The Tribunal further noted that INX News Pvt. Ltd. had to pay a sum of Rs. 1.15 crores for the placement of the channel for the period 01.06.2011 to 31.05.2012, but it made a payment of Rs. 31,07,702/- only and has not made any further payment to Manthan Broadband Services Pvt. Ltd. While allowing the petition TDSAT directed INX News Pvt. Ltd. to pay outstanding dues to Manthan Broadband Services Pvt. Ltd. after deducting TDS, if any, deposited by it with the income tax authorities for which it will provide the TDS certificates. [Manthan Broadband Services Pvt. Ltd. v. INX News Pvt. Ltd., 2015 SCC OnLine TDSAT 1357, decided on September 9, 2015]