Delhi HC Grants Interim Relief To Culver Max Entertainment Against MX Media Over Preservation Of Outstanding Dues

The Court directed MX Media to ensure a minimum amount of Rs. 31.25 Crores in their bank accounts if any sale of assets of their company takes place, till further orders of the Court.

The Court was hearing a petition seeking interim measures of protection under Section 9 of the Arbitration and Conciliation Act, 1996, for the preservation of the outstanding amount owed by the Respondent.

The bench of Justice Prathiba M. Singh observed, “…considering that there is a distinct possibility of a transaction being executed by the Respondent No. 1 and a third party, according to which, the assets of the Respondents are to be taken over by a third party entity it is directed that if any sale of assets of Respondent No.1 company takes place, it shall be ensured that a minimum amount of Rs. 31.25 Crores is retained by the Respondent No.1/2 companies in their bank accounts, till further orders of this Court.”

Brief Facts-

The present petition arises from a distribution agreement between Sony Pictures Networks India Private Limited (now Culver Max Entertainment Private Limited) and MX Media & Entertainment Pte. Ltd. (MX). The agreement required the copyrighted content of the Petitioner to be distributed on the MX player platform for a fee. Despite making the content available and raising invoices, the Petitioner claims that over Rs. 31 Crores remains unpaid by the Respondent.

The petition also mentions that a creditor of the Respondent filed for the company’s winding up in the High Court of the Republic of Singapore. Although an order for winding up was initially passed, it was later stayed to allow Respondent to explore the sale of its business.

While noting the submission of the responder that a reconciliation of the statement of account may be necessary, as the amount due according to them is slightly less than what is claimed in the Petition. The Court said, that if so, the party should place the reconciled statement of account on record along with their reply.

Additionally, the Court said if required, after the transaction between Respondent and the third party is completed, officials from both parties are free to hold a reconciliation meeting.

The Court listed the matter for further hearing.

Cause Title: Culver Max Entertainment Pvt. Ltd. Formerly Known As Sony Pictures Networks India Pvt. Ltd. v. MX Media and Entertainment Pte. Ltd.

Appearance:

Appellant: Sr. Adv. Gaurav Pachnanda, Adv. Ruby Singh Ahuja, Adv. Vishal Gehrana, Adv. Ishan Gaur, Adv. Simranjeet, Adv. Megha Dugar & Adv. Threcy Joboy Lawrence

Respondent: Sr. Adv. Rajiv Nayyar, Sr. Adv. Jayant Mehta and Adv. Govind Singh Grewal

Click here to read/download Judgment