Sony moves Bombay HC to challenge TDSAT stay on Tata Play disconnection

Time of India

a day ago

Sony Pictures Networks India
(SPNI) has moved the
Bombay High Court
to challenge a recent Telecom Disputes Settlement and Appellate Tribunal (TDSAT) order restraining SPNI from proceeding with a disconnection notice issued to direct-to-home (DTH) operator
Tata Play
.
A division bench of the court comprising Justices Revati Mohite Dere and Neela Gokhale on Tuesday issued notices to TDSAT and
Tata
Play, directing them to file their responses. The matter has been posted for further hearing on Monday, June 16.
SPNI, a Sony Group Corp-owned entity operating under the legal name Culver Max Entertainment, runs 27 television channels. It issued a disconnection notice to Tata Play, the country's largest DTH operator with 18 million subscribers, after the latter decided to remove its channels from consumer packs following disagreements over the renewal of their annual subscription deal.
While staying SPNI's disconnection notice on May 27, TDSAT had directed Tata Play to pay Rs 40 crore to the broadcaster within two weeks as part-payment against SPNI's claimed dues of Rs 128 crore. The tribunal said this amount would be adjusted against the final liability determined during the final hearing.
People familiar with the dispute between the two said SPNI is seeking a fee hike, which Tata Play has resisted citing declining viewership of its channels.
TDSAT in its order noted that not granting the stay could result in irreparable harm to Tata Play. It directed both parties to reconcile their differences, including at the account level.
In the High Court, senior counsel Janak Dwarkadas, along with Sneha Jaisingh of Bharucha & Partners, appeared for SPNI to challenge the TDSAT order. Senior counsel Ravi Kadam is representing Tata Play.
In the TDSAT, Tata Play's counsel argued that the broadcaster's demand was unjustified, claiming the company had already paid about Rs 4,000 crore over the past decade, including Rs 700 crore annually.
They further contended that substantial payments had been made since SPNI's initial communication in March 2025, which had sought dues of Rs 300 crore.
Tata Play, jointly owned by
Tata Sons
(70%) and Walt Disney (30%), reported a consolidated net loss of Rs 510 crore for FY25, up 44% from Rs 354 crore the previous year. Revenue declined 5.46% to Rs 4,082 crore, driven by subscriber losses amid increased competition from DD Free Dish and the rising popularity of OTT platforms.
SPNI reported a 19% year-on-year decline in consolidated net profit to Rs 839 crore for the fiscal year ended March 31, 2024. Revenue from operations fell 3% to Rs 6,510 crore, with advertising revenue declining 11% to Rs 2,912 crore, while subscription revenue rose 7% to Rs 3,346 crore.
According to Ashish Pyasi, partner at law firm Aendri Legal, the TDSAT resolves conflicts between telecom and broadcast companies. Its rulings can only be challenged in the Supreme Court. There is no provision for challenging the interim orders to the Supreme Court. 'However, if someone files a writ petition in the High Court against a temporary TDSAT order, they are asking the High Court to use its special powers, which is only allowed in rare cases,' adds Pyasi.