Sony sues MX Player for non-payment of dues; Court tells MX Player to set aside Rs 31 cr from asset sale

New Delhi: The Delhi High Court has directed MX Media to allocate Rs 31.25 crore from its asset sale towards the amount owed to Sony.

This order was issued during the hearing of a petition filed by Sony under Section 9 of the Arbitration and Conciliation Act, 1996. Sony sought interim measures for the preservation of the outstanding amount owed by MX Media & Entertainment Pte Ltd (Singapore) and its affiliated entities.

Culver Max Entertainment (previously known as Sony Pictures) lodged a plea with the Delhi High Court against MX Media & Entertainment Pte Ltd. (Singapore), MXP Media India., and MX Media Co. (BVI) (United Kingdom) over unpaid dues amounting to Rs 31 crore from a 2021 agreement.

The agreement, which ran for two terms until March 2023, granted MX Player access to certain Sony content and functionalities. However, MX Player terminated the agreement in March 2022, leaving behind the unpaid dues.

It's important to note that MX Media & Entertainment. (Singapore) is currently undergoing compulsory liquidation in Singapore. However, a winding-up order issued by the Singapore High Court has been temporarily stayed until June 20, 2024, following an application by MX Player's affiliates seeking to terminate the liquidation process.

Culver Max's legal team, Karanjawala and Co.secured a court order on May 27, 2024. 

This order mandates that if MX Media & Entertainment Pte Ltd. (Singapore) undergoes any asset sales, an amount of Rs 31.25 crore must be set aside from the proceeds to settle the outstanding dues owed to Culver Max. Additionally, the court has directed that Culver Max be informed through their lawyers upon the conclusion of any such asset sale.