TDSAT stays ₹128.42 cr demand against Tata Play, orders ₹40 cr interim deposit

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed Tata Play Limited to deposit ₹40 crore within two weeks, offering partial relief in its ongoing dispute with Culver Max Entertainment (formerly Sony Pictures Networks India). The directive comes as part of a stay on the execution of a ₹128.42 crore demand notice issued by the broadcaster

TDSAT bench comprising Chairperson Justice D.N. Patel and Member Subodh Kumar Gupta admitted Tata Play’s petition challenging the disconnection notice dated May 21 sent by SPNI, the matter is listed on July 23 for further hearing.

The tribunal, while hearing arguments from senior advocates Dr. Abhishek Manu Singhvi and Meet Malhotra on behalf of TATA Play, observed that there is a prima facie case in favour of this petitioner (TATA Play), balance of convenience is also in favour of this petitioner and if the stay, as prayed for, is not granted, it will cause irreparable loss to the petitioner.

According to TATA Play, despite a decade-long business relationship during which approximately ₹4,000 crore has been paid—including ₹700 crore annually in recent years— Sony Pictures Networks India's (Culver Max Entertainment) issued a sudden demand for ₹128.42 crore via a notice dated May 21, 2025. The petitioner argued that the amount was neither due nor payable and that significant payments had already been made following a prior communication from March 2025 seeking ₹300 crore.

Challenging the legality and basis of the notice, the petitioner’s counsel pointed out alleged discrepancies in calculations and claimed non-compliance with key regulatory provisions, including Regulations 17 and 35 of the 2017 Quality of Service and Consumer Protection Regulations under the Telecommunication Act.

In response, senior advocate Abhishek Malhotra, appearing for the Sony Pictures Networks India, suggested that the matter could be amicably resolved if the petitioner made a partial payment, and agreed to remove any static images or scrolling messages being broadcast in the interim.

Acting on this assurance, the tribunal directed the petitioner to deposit ₹40 crore within two weeks, clarifying that the payment would be without prejudice to the petitioner's legal position and not an admission of liability. Similarly, the receipt of the amount by the respondent will not be construed as acknowledgment of dues.

In a further relief to Tata Play, the tribunal stayed the implementation and execution of the contested notice and ordered the respondent to immediately cease running any static images or scrolls on the petitioner’s retransmitted television channels.

The interim stay will remain in effect until the next hearing scheduled for July 23, 2025. The tribunal also encouraged both parties to reconcile outstanding account-related disputes prior to the next session.