Arbitral tribunal rejects ZEEL subsidiary's claims against RailTel

New Delhi: The Arbitral Tribunal has rejected the claims made by Zee Entertainment Enterprises (ZEEL) and its subsidiary, Margo Networks, against RailTel Corporation of India. 

The dispute centered around the termination of a Content on Demand (COD) agreement, where Margo Networks was contracted to provide media content across Wi-Fi-enabled railway stations and trains. 

It updated on BSE, “It was informed that the Company and Margo Networks Private ('Margo'), a subsidiary of the Company, have initiated arbitration proceedings against wrongful termination of the Content on Demand Agreement by the Railtel

Corporation of India (‘Railtel’) and claimed the amounts wrongfully forfeited by Railtel along with cost/damages.” 

The tribunal not only dismissed the claims filed by ZEEL and Margo Networks but also rejected the counterclaims put forth by RailTel. 

According to a regulatory filing from Zee Entertainment, the company is now considering the option of appealing the tribunal's decision in an appropriate court to challenge the arbitral award.