STRACON INDIA LIMITED Vs. UTV SOFTWARE COMMUNICATION LIMITED

JUDGEMENT

(1.) Through this application under Section 11 of the Arbitration Act the petitioner has sought the appointment of the Arbitrator on the basis of the agreement dated 25/3/98. Clause 18 of the said agreement provides as under :-

(2.) However subsequent to this agreement the parties also entered into other agreements which are dated 5/12/98, 6/2/99 and 12/3/99. The agreement dated 5/12/98 refers to the governance of the relationship of the parties as per the terms of the agreement dated 25/3/98. Clause 5 specifically provides that both the parties shall continue to be the members of the consortium and will actively participate in the consortium as per agreement dated 25/3/98 and will be governed by the provisions of the said agreement.

(3.) However, the respondent while resisting the application relied upon the last agreements dated 5/12/1998 and 6/2/1999 executed between the parties. The agreement dated 6/2/99 is more or less modification of some of the terms of the second agreement dated 5/12/98 with regard to the transfer of rights. The parties entered into this agreement for forfeiture of rights of UTV in Doordarshan Sports Consortium granted by agreement dated 24/3/98 and 25/3/98 for a period of 12 months starting from 1/1/1999. One of the conditions of such forfeiture was that UTV shall transfer the rights arising out of License Agreement dated 9/9/1998 and such transfer of rights was to be communicated to Doordarshan because UTV placed these rights as part of their commitment to Doordarshan arising out of the agreement dated 24/3/98. Clause 6 of the agreement dated 6/2/1999 is of considerable significance. It reads thus: "Upon signature of WT as "consenting party" to this Agreement, ST and UTV shall inform Doordarshan through a letter Jointly signed informing Doordarshan that UTV has transferred it's material obligations and rewards as per proviso of the Agreement of 24/3/1998 to ST, and upon payment is the sole owner of all rights covered under the Agreement of 9/9/1998 for the entire period of the said Agreement."