Hathway was receiving the General Entertainment Channels (GECs) of the Zee group on the basis of interconnect agreements that it entered into with M/s Media Pro Enterprise India Pvt. Ltd. which earlier controlled and managed the channels in question.
The agreements for Kolkata and DAS-II areas came to end 31.3.2014 and for Delhi and Mumbai on 30.4.2014. In view of the Regulations issued by TRAI around the time the earlier agreements came to end, M/s Media Pro Enterprise India Pvt. Ltd. was no longer in a position to enter into any fresh agreements and the Zee group of channels came to be handled by the Taj Television.
The negotiations between the two sides for renewal/execution of fresh agreements failed to yield any result and on 26.6.2014 Taj Television wrote to Hathway stating that the negotiations had failed and forwarded to it the RIO based agreement executed from its side. There was delay on the part of Hathway in executing the RIO based agreement and in the meanwhile Taj Television issued the disconnection notice on 8.7.2014.
On 28.07.2014, Hathway counter-signed the RIO based agreement and sent it back to Taj Television. On the same day, Hathway also sent a cheque dated 31.07.2014 for Rs.16.8 crores. According to it, this amount was in full payment of the arrears of the monthly subscription fees for the period 01.04.2014 to 31.07.2014, calculated at the rate specified under the fixed fee agreements with Media Pro that had expired on 30.03.2014 and 30.04.2014, as noted above.
Taj Television did not accept the cheque and returned it back and acting upon the disconnection notices, last evening deactivated the signals of its channels to Hathway’s network.