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ZEEL sought that the respondent be restrained from transferring its properties to any other third party during the pendency of the broadcasting petition, which was granted
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has taken a decisive step in the ongoing broadcasting dispute between Zee Entertainment Enterprises Ltd. (ZEEL) and Hyderabad Cable Digital Service (HCDS) Private Limited.
The TDSAT bench, consisting of Justice DN Patel and member Subodh Kumar Gupta, issued bailable warrants against two directors of HCDS and imposed restrictions on the company's ability to sell or transfer its business to a third party.
The legal move comes in response to a petition by ZEEL, represented by Advocate Upender Thakur and Yasheshvi Vashishtha, claiming that HCDS owes approximately Rs 2.02 crore in outstanding regular subscription dues until May 2023. This includes additional outstanding subscription dues discovered during an audit of HCDS's system by TRAI-empanelled auditor KPMG, excluding an 18% per annum interest payable as per agreements.
ZEEL, seeking protection of its interests, requested the TDSAT to restrain HCDS from transferring its properties to any third party during the pendency of the broadcasting petition, a request that the tribunal granted.
In response to the petition, the TDSAT bench directed HCDS to submit an affidavit detailing its properties as of the petition filing date, October 30, 2023. This affidavit is to be filed by one of HCDS's directors.
Subsequently, the TDSAT issued bailable warrants against the directors of HCDS, B.V. Rajeshwara Rao and B. Rajitha, residents of D.No. 15-55, near Kodandaram Nagar, near Community Hall Dilsuknagar, Hyderabad (500060).
Each director faces warrants of Rs 5 lakh. The Vanasthalipuram Police Station, within whose limits the directors reside, has been tasked with serving the notice. Additionally, a copy of the order has been forwarded to the Rangareddy District Magistrate in Telangana to ensure compliance with the directive restraining HCDS from selling or transferring its properties.
The TDSAT has scheduled the next hearing on this matter for February 21, 2024.
Case Title: Zee Entertainment Enterprise Ltd v. Hyderabad Cable Digital Services Pvt. Ltd.
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