TDSAT directs Multicity Digital Consortium to pay Sony Rs 47.39 lakh

MUMBAI: When subscription bills go unanswered, the signals can eventually go silent and the legal meter keeps running. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has directed multi-system operator (MSO) Multicity Digital Consortium Pvt Ltd to deposit Rs 47.39 lakh in outstanding subscription dues payable to Culver Max Entertainment Pvt Ltd, which operates Sony Pictures Networks India, along with simple interest at 9 per cent per annum.

In its 12 October 2026 judgment, the tribunal ordered the company, through its directors, to deposit the amount within two months. Interest will be calculated from the date the petition was filed until the dues are paid. Should the company fail to comply, the amount can be recovered through execution proceedings.

The order was delivered by TDSAT member Justice Ram Krishna Gautam in Broadcasting Petition No. 462 of 2021. The case was originally filed by Sony Pictures Networks India Pvt Ltd, with Culver Max Entertainment subsequently substituted as the petitioner following a change in the company’s name.

At the heart of the dispute were unpaid subscription charges for Sony’s television channels distributed by Multicity Digital Consortium across Tamil Nadu and Karnataka. The broadcaster sought recovery of the outstanding amount, initially demanding interest at 18 per cent per annum. The tribunal, however, awarded interest at 9 per cent.

According to the judgment, the two companies entered into a subscription agreement on 25 February 2019, under which Sony Pictures Networks India authorised Multicity Digital Consortium to retransmit its television channels in designated areas of Tamil Nadu. The agreement was subsequently renewed, and the authorised territory expanded to Karnataka in June 2020.

Sony told the tribunal that it continued supplying its channels to the MSO and regularly raised invoices for monthly subscription charges. Despite repeated requests, the broadcaster alleged, the dues remained unpaid.

The outstanding amount comprised Rs 41.72 lakh for Tamil Nadu and Rs 5.67 lakh for Karnataka, taking the total to Rs 47,39,820.

Sony issued a disconnection notice on 26 February 2021 under the Telecommunications (Broadcasting and Cable) Services Interconnection (Addressable System) Regulations, 2017. With the dues still unsettled, it disconnected the supply of its signals to Multicity Digital Consortium on 3 April 2021. A further notice, dated 6 May 2021, sought payment of the outstanding amount.

The broadcaster subsequently approached TDSAT seeking recovery of the dues with interest. It also sought directions to prevent the MSO from retransmitting its channels without authorisation following disconnection.

But the dispute was not limited to unpaid bills. Multicity Digital Consortium challenged the broadcaster’s commercial practices, alleging that Sony had failed to provide signals on a non-discriminatory basis, as required under the applicable interconnection regulations.

The MSO claimed that Sony had entered into fixed-fee arrangements with competing operators, including Siti Cable Networks Ltd and GTPL, rather than charging them on a subscriber basis. According to Multicity Digital Consortium, these arrangements enabled rival networks to offer cable television services to local cable operators (LCOs) at substantially lower rates.

It alleged that some LCOs associated with its network consequently migrated to competing operators without clearing their outstanding dues. The respondent argued that the alleged pricing disparity placed it at a competitive disadvantage and contributed to financial losses.

As part of its defence, Multicity Digital Consortium also sought the production of interconnection agreements, subscriber reports, bank statements and other documents relating to Sony’s arrangements with rival MSOs.

The MSO raised a separate objection over Sony’s streaming business, contending that the broadcaster was offering its channels through its over-the-top platform SonyLIV at prices it claimed were lower than those charged to the respondent. It alleged that subscribers had shifted from its cable network to the streaming platform as a result.

In another contention, Multicity Digital Consortium alleged that the petitioner was involved in the unauthorised distribution of live-streaming channels without permission from the Ministry of Information and Broadcasting to distribute signals to end subscribers.

The respondent argued that the alleged distribution practices, combined with the fixed-fee arrangements with rival MSOs, had created an uneven competitive environment and contributed to financial hardship. It referred to approximately Rs 24 crore in unpaid amounts, which it attributed to the impact of these arrangements and the resulting disruption in payments by LCOs.

These claims formed part of the respondent’s defence and should not be read as findings established by the tribunal. The operative order directs payment of the specific subscription dues of Rs 47.39 lakh, together with 9 per cent annual simple interest.

For Multicity Digital Consortium, the immediate task is therefore to clear the amount within the two-month deadline or face recovery proceedings. For Sony, the ruling provides a route to recover the outstanding subscription charges, with interest continuing to accrue until payment.