PRASAR BHARTI Vs. STRACON INDIA LIMITED

JUDGEMENT

(1.) Petitioner Prasar-Bharti has filed this petition under section 9 of the Arbitration and Conciliation Act, 1996 (for short the 'Act') for interim directions, restraining respondents, Stracon (India) Ltd. and TransWorld International (for short 'TWI'), from marketing in India, either themselves or through their agent or assignee, clippings and highlights of BCCI cricket matches (India Vs. West Indies Series from 9th Oct., 2002 to 24th Nov., 2002). The controversy is focused around the construction and interpretation of agreement dated 19.2.2000 between the Prasar Bharti and BCCI (hereinafter referred to as "the Agreement").

(2.) It may be noted here, that Modi Entertainment Limited (hereinafter referred to MEL) had also filed a suit No.1687/2002 against the respondents, ESPN Software (India) Ltd., Star Television Network and the petitioner, for similar relief, along with I.A.No.9615/2002, for interim relief. While issuing notice by order 11.10.2002, contesting defendants were restrained from telecasting the highlights of said cricketing events, till the next date of hearing. However, the Division Bench of this Court, by order dated 17.10.2002 in FAO.(OS).329/2002, stayed the operation of that order, observing that there was serious challenge to the locus standi of MEL to file the suit. The respondents were directed to execute a bank guarantee of a nationalized bank, equivalent to 50 per cent of the amount generated by telecast of highlights during that period. The appeal was disposed of by order dated 21.10.2002, directing final disposal of the I.A.No.9615/ 2002 irrespective of any observation made by Division Bench in their order dated 17.10.2002. The present petition was filed by Prasar Bharti after the disposal of the appeal.

(3.) Facts in brief are, that by a broadcasting licence agreement dated 25.9.1999 the Board of Control for Cricket in India (for short 'BCCI') granted to Prasar Bharti the petitioner, exclusive and full rights for production and broadcasting of the Cricketing Events to be conducted by BCCI in the territory of Union of India, from 1st January, 2000 to 30th September, 2004. After acquiring these rights the petitioner invited bids (hereinafter referred to as "the Bid") for marketing of airtime in India and abroad of the Cricketing Events. In response to the same, respondent TWI-Stracon submitted its Bid Offer (hereinafter, referred to as "the Bid Offer) for exclusive global marketing rights of such Cricketing Events. Petitioner-Prasar Bharti accepted their Bid Offer for marketing rights in terms of acceptance letter dated 4th February, 2000 (with exception of radio rights within the United Kingdom) for outside Union of India. In pursuance of the letter of acceptance, respondent TWI. Stracon submitted the bank guarantee and on 19.2.2000 executed the agreement in dispute. Thereafter, petitioner through the distribution agreement appointed Modi Entertainment Limited as its distributor of two digital satellite encrypted channels, namely DD Sports and DD News, including BCCI cricket events.