PRASAR BHARATI Vs. B4U MULTIMIDIA INTERNATIONAL LIMITED

JUDGEMENT

(1.) THE Petitioners, the Broadcasting Corporation of India, a Statutory Corporation, incorporated under the Prasar Bharati Broadcasting Corporation of India, have challenged the Award passed by the sole Arbitrator dated 17th December 2008 by invoking section 34 of the Arbitration and Conciliation Act, 1996 (for short 'the Arbitration Act').

(2.) THE Petitioners entered into an agreement with the Respondents for supply of block buster Hindi Films or big star cast films for telecast on Doordarshan's National Network (DD1). As per agreement dated 14th September 2000 (the agreement), the revenue generated shall be shared in the ratio of 50 : 50. By a letter dated 25th September 2000, the Respondents proposed the rates and which were accepted by the Petitioners letter dated 26 th September 2000. The Respondents did not pay. The Petitioners by their letter dated 23rd January 2000 requested the Respondents to release the payment of Rs.1,14,91,813/. The Respondents made the part payment only, never provided the details and accounts as per clause. The letter from the Respondents to the Petitioners regarding the change in the name of the Company and revised MOU with Doordarshan proposing revenue sharing in the ratio of 60:40. This was not agreed by Ms. M. S. Rugmini DDG (Films) (letter dated 22 nd February 2001). In the month of April 2001, the Respondents disputed their liability to pay the dues. The Petitioners by letter dated 12 th June 2001 terminated the agreement called upon to pay the dues of Rs.3,15,56,439/ together with interest of Rs.20,39,139/ within a period of 30 days. The same was the counter claim of the Petitioner. The Respondents on the contrary claimed a sum of Rs. 8,40,00,000/ from the Petitioners. The same was the claim of the Respondent. By letter dated 21st June 2001, the Respondents invoked the arbitration clause for resolving the dispute. By consent, the Arbitral Tribunal constituted. The parties led evidence. The Arbitrator has passed the restricted award against the Petitioner (original Respondent) and rejected the counter claim.

(3.) THE relevant clauses of Agreement dated 14 th September 2000 as read and referred are as follows :