The Delhi high court has directed Star India Pvt Ltd against disconnecting its satellite signals to Asianet Satellite Communication till the dispute over the enhanced subscription rate was decided by the Telecom Disputes and Settlement Appellate Tribunal.
However, it has asked Asianet Satellite Communication to deposit Rs 3 lakh (Rs 3 million) with the TDSAT.
While disposing the petition filed by Star India, a division bench headed by justice M K Sharma directed ASC to deposit Rs 30 lakh (Rs 3 million) -- 50 per cent as security and balance in bonds -- before the TDSAT for getting its signals activated.
It has asked ASC to give an undertaking before the tribunal that it would pay the balance amount as decided by the tribunal.
The court ordered the tribunal to dispose of the matter within a month in accordance with the law.
Star India had filed a petition seeking recovery of its outstanding dues towards subscription charges from ASC, a multi-system operator engaged in the business of transmitting channels of various broadcasters.
It has sought quashing of the TDSAT order which had restrained it from deactivating signals to ASC as the latter had not paid the enhanced subscription fee of Rs 83.40 lakh (Rs 8.3 million) per month due between 2003 and 2005. Star had increased the subscription fee from Rs 55 lakh (Rs 5.5 million) to Rs 83.40 lakh (Rs 8.3 million) from December 31, 2003.
While contending that TDSAT had erred in passing the order, Star said that the order was inconsistent and contrary to its earlier order delivered on January 17, in the case of Star India Vs IndusInd Media, where it had upheld that the signing of a subscription agreement was a prerequisite for supply of signals.
Star said ASC was not entitled to receive signals in the absence of a concluded contract between the parties, which under the Interconnection Regulations by TRAI, was a mandatory prerequisite before obtaining signals.
The subject matter of these proceeding did not pertain to execution of a new subscription agreement for 2006, it said.
According to Star, there was no subscription deal and yet the TDSAT had granted an interim order of status quo, which was akin to a direction restraining it from deactivating signals.
The petitioner said a valid contract such as subscription agreement, required that all the terms and conditions embodied in the contract must be agreed and settled between the parties.
Earlier, Star had filed a petition against ASC seeking recovery of outstanding dues towards subscription charges based on an agreement signed between the parties. However, ASC had failed to comply with the TDSAT orders and had not made payments at the enhanced rate.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
