TDSAT grants interim relief to Tata Play in Rs 128 crore dispute with Sony

New Delhi: The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday stayed the operation of a Rs 128.42 crore demand notice issued by Culver Max Entertainment (formerly Sony Pictures Networks India) to Tata Play, while directing the direct-to-home (DTH) operator to make an interim payment of Rs 40 crore within two weeks.

The matter relates to a long-standing commercial relationship between Tata Play Ltd. and Culver Max. 

According to Tata Play, it has already paid approximately Rs 4,000 crore over the last ten years and continues to pay Rs 700 crore annually. 

The tribunal was informed that even after a communication from Culver Max in March 2025 requesting Rs 300 crore, a sizable amount had already been paid by Tata Play. Yet, a fresh notice dated May 21, 2025, demanded an additional Rs 128.42 crore, which Tata Play challenged before the tribunal.

Senior advocates Abhishek Manu Singhvi and Meet Malhotra, appearing for Tata Play, argued that the claimed amount was neither due nor payable at the time the demand notice was served. 

They contended that Culver Max had not appropriately accounted for the set-off amounts and that the calculation of dues was flawed. 

Further, they submitted that there was a breach of Regulation 17 read with Regulation 35 of the Telecommunication (Broadcasting and Cable) Services Standards of Quality of Service and Consumer Protection (Addressable Systems) Regulations, 2017.

The tribunal, after reviewing several annexures presented by Tata Play, including agreements and amendments thereto, found a prima facie case in favour of the petitioner. It noted that the balance of convenience lay with Tata Play and that denying interim relief could result in irreparable loss.

Culver Max, represented by senior advocate Abhishek Malhotra, indicated a willingness to remove a static image or scroll being displayed on channels offered for retransmission to Tata Play, should an interim payment be made. 

The counsel further requested the tribunal not to pass a detailed order at this stage and assured that a reply with all annexures would be filed.

Taking note of this, the tribunal directed Tata Play to pay Rs 40 crore within two weeks. However, it made it clear that this payment would be without prejudice to either party’s claims or defences. Specifically, the order states:

“The payment of the aforesaid amount will be subject to the outcome of this Broadcasting Petition. The payment shall not be treated as admission of any facts by the petitioner nor shall the receipt of the said amount by the respondent be treated as such. This amount will be adjusted towards the final liability, if any, at the time of final hearing.”

In addition to staying the Rs 128 crore demand notice dated May 21, 2025, TDSAT also restrained Culver Max from running any static image or scroll on television channels retransmitted by Tata Play.

The tribunal explicitly directed Tata Play to immediately and forthwith stop running any static image or scroll on the television channel offered by the respondent for retransmission.

The stay will remain in force until the next date of hearing, which has been scheduled for July 23, 2025. The tribunal also encouraged both parties to reconcile their accounts and other issues before that date.

The matter is listed under the heading "For Directions" for the next hearing.

This interim order gives Tata Play a temporary reprieve and paves the way for a detailed legal examination of contractual obligations, dues, and regulatory compliance between two of India’s most prominent media and broadcasting entities.