TDSAT raps Sahara for defective defence, told to pay over ₹1.10 crore to two MSOs

In a significant setback for Sahara India TV Network, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed the broadcaster and its distributor, ABS Media Services Pvt. Ltd., to jointly and severally pay more than ₹1.10 crore in outstanding placement fees to two Multi System Operators (MSOs).

The tribunal passed two separate but similarly reasoned judgments, highlighting procedural lapses, lack of evidence from the broadcaster, and established liability under prior contractual arrangements. Both orders were delivered by Justice Ram Krishna Gautam, Member, TDSAT.

The petitioners — Konark IP Dossiers Pvt. Ltd. and Den New Broad Communication Pvt. Ltd. — had approached the tribunal under Sections 14 and 14A of the TRAI Act, seeking recovery of outstanding placement charges for Sahara’s TV channels Sahara One and Filmy.

The MSOs contended that the broadcaster had continued to avail placement services on the basis of a 2011 agreement, followed by a fresh agreement dated March 20, 2013, executed through Sahara’s distributor ABS Media Services.

In both petitions, Sahara India TV Network denied signing the 2013 agreement and argued that the MSOs had unilaterally raised arbitrary invoices. The broadcaster also contested receiving demand notices and claimed no outstanding dues existed.

However, the tribunal found Sahara’s reply procedurally defective:

Key Procedural Irregularities Noted

1) The reply was filed through a law firm, not an authorised representative of Sahara.

2) Verification clauses were unsigned, violating Order VI Rule 15 of the Civil Procedure Code.

3) An affidavit supporting the reply was filed by an individual authorised by a different company (Trilogic Digital Media Ltd.), which had no connection to Sahara India TV Network.

4) Sahara’s sole witness never appeared for cross-examination, leaving “literally no evidence” in its defence.

Justice Gautam observed that these deficiencies rendered the broadcaster’s reply legally untenable. The tribunal held that in civil proceedings, the preponderance of probabilities and proper documentation weigh heavily, and Sahara had failed to meet even the basic procedural requirements.

In its two separate orders, the TDSAT directed Sahara India TV Network and ABS Media Services Pvt. Ltd. to pay ₹66,18,940 with 9% simple interest to Konark IP Dossiers Pvt. Ltd. in Broadcasting Petition No. 488 of 2014, and ₹44,12,627 with 9% simple interest to Den New Broad Communication Pvt. Ltd. in Broadcasting Petition No. 487 of 2014.

Contracts, Communications Supported MSOs’ Claims

The tribunal accepted both the 2011 and 2013 agreements as binding. Although Sahara argued the 2013 contract lacked its signature, the tribunal noted:

The agreement was executed by ABS Media Services — Sahara’s distributor — which had been acting on the broadcaster’s behalf in previous years as well.

Emails exchanged with Sahara’s representatives, including assurances regarding payment of dues, established the working relationship.

Respondent No. 2 (ABS Media Services) did not contest either petition and remained ex parte.

The MSOs produced ledgers, invoices, authorisation documents, and Section 65B certificates demonstrating the outstanding placement fees. With Sahara failing to furnish rebuttal evidence, the tribunal held the MSOs’ claims as proved.

While both petitioners sought 18% interest, the tribunal awarded 9% simple interest, citing earlier precedents and current economic conditions.

Justice Gautam noted that 9% had been consistently applied in similar disputes to maintain fairness in “the fiscal scenario of the business atmosphere.”

TDSAT has directed Sahara India TV Network and ABS Media Services to deposit the full amounts within two months. Failing this, the petitioners may proceed with recovery through due legal processes.

Both judgments reinforce the tribunal’s stance on maintaining contractual discipline in the broadcasting distribution ecosystem, especially at a time when the sector continues to undergo regulatory and commercial restructuring.