Cable TV
Don’t compete with Den Enjoy, Delhi HC restrains two MSOs
NEW DELHI: The Delhi High Court has restrained Omeshwar Singh and UCS Broadband Company from “commencing any business which directly competes with the business” of M/s Den Enjoy Cable Networks Private Limited till the next date of hearing.
Justice Vibhu Bakhru also ‘directed’ Den Enjoy to “take the necessary steps to invoke the Arbitration Clause.”
While issuing notice to the respondents and listed the matter for 11 May 2017, the respondents were asked to file their reply within two weeks, and a rejoinder if any could be filed within a week thereafter.
The Court, in its order of 21 March 2017, also noted that “it appears that Omeshwar Singh is attempting to avoid his contractual obligations by using the corporate façade of UCS Broadband Company for improper purpose.”
However, the Court also said this was only “prima facie view at an ad interim stage, and would not preclude the respondent from raising all contentions which would be considered at a later stage.”
(Earlier, on 11 March 2017, the Court had “dismissed as withdrawn” a petition on this issue after Den Enjoy sought liberty to withdraw, and file a fresh petition.)
Den Enjoy had filed the case against Singh for engaging in competing business in complete disregard of the non-compete terms of the Share Subscription Agreement. It was alleged that Singh, through his company UCS Broadband, not only obtained / applied for Digital Access permission but also approached cable operators of Den Enjoy and broadcasters for content.
Omeshwar Singh is a founder shareholder, and had been Den’s agent from Lucknow. He presently holds 16.33 per cent shareholding in Den Enjoy.
Omeshwar Singh’s counsel Vineet Bhagat had made an appearance as a result of a caveat filed by him through his counsel apprehending such a petition. The Court noted his argument that Section 27 of the Contract Act was clear that pre-compete condition was void and against the law. Bhagat said enforcement of any no-competition clause would amount to creation of a monopoly. He also argued that the agreement between Den Enjoy and the respondents was only related to Lucknow.
Den Enjoy Cable Networks Pvt. Ltd. is a joint venture company (JVC) of Den Networks Ltd. The company is engaged in the business of providing cable television services in Lucknow.
Den Enjoy, in a press release issued later, also said the order had come after its counsel Arun Kathpalia submitted that Singh is a director and one of the major shareholders of the company, and drew attention of the court to the clause 24 (non-compete) of the Share Subscription Agreement reached between the company and shareholders of the company.
However, Singh told indiantelevision.com that he had resigned from UCS Broadband Company on 30 July last year and even sold his shareholding in October 2016.
Singh also claimed that UCS was not using his Lucknow residential premises as its office, though the judge had noted that respondent’s counsel had not disputed this fact in Court. He said that he been living at different premises since April 2012.
Meanwhile, a UCS Broadband official informed indiantelevision.com that it has already obtained a licence to operate in Tanda in District Ambedkar Nagar (Uttar Pradesh) which falls under DAS Phase IV.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
