{"id":175379,"date":"2009-12-08T00:00:00","date_gmt":"2009-12-07T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-c-sat-cable-vision-vs-ms-asianet-satellite-on-8-december-2009"},"modified":"2016-06-07T02:10:39","modified_gmt":"2016-06-06T20:40:39","slug":"ms-c-sat-cable-vision-vs-ms-asianet-satellite-on-8-december-2009","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-c-sat-cable-vision-vs-ms-asianet-satellite-on-8-december-2009","title":{"rendered":"M\/S. C Sat Cable Vision vs M\/S. Asianet Satellite &#8230; on 8 December, 2009"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">M\/S. C Sat Cable Vision vs M\/S. Asianet Satellite &#8230; on 8 December, 2009<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nArb.A.No. 51 of 2009()\n\n\n1. M\/S. C SAT CABLE VISION,\n                      ...  Petitioner\n\n                        Vs\n\n\n\n1. M\/S. ASIANET SATELLITE COMMUNICATION\n                       ...       Respondent\n\n                For Petitioner  :SRI.DINESH R.SHENOY\n\n                For Respondent  :SRI.SAJI VARGHESE\n\nThe Hon'ble MR. Justice P.R.RAMAN\nThe Hon'ble MR. Justice P.R.RAMACHANDRA MENON\n\n Dated :08\/12\/2009\n\n O R D E R\n       P.R. RAMAN &amp; P.R. RAMACHANDRA MENON, JJ.\n              ...............................................................................\n           ARBITRATION APPEAL NO. 51 OF 2009\n              .........................................................................\n                    Dated this the 8th December, 2009\n\n                                   J U D G M E N T\n<\/pre>\n<p>P.R. Raman, J:\n<\/p>\n<p>      Appellant is aggrieved by the order passed by the District<\/p>\n<p>Court in O.P.(Arbitration )No.112 of 2009 filed by the respondent<\/p>\n<p>herein. The respondent herein approached the court below under<\/p>\n<p>Section 9 of the Arbitration and Conciliation Act 1996 claiming<\/p>\n<p>certain interim reliefs. According to them, they are in the field of<\/p>\n<p>distribution of Cable T.V. programmes and also providing cable<\/p>\n<p>network services in the State of Kerala. They have got their own<\/p>\n<p>established network and cable channels and                                               are providing<\/p>\n<p>superior quality signal and services. The appellant herein had<\/p>\n<p>approached them with a proposal for setting up of joint venture<\/p>\n<p>business in Cherai in Ernakulam district and some adjoining areas<\/p>\n<p>with the intention of providing the subscribers with better and<\/p>\n<p>quality telecast       of cable TV                 programmes.                       They reached a<\/p>\n<p>Memorandum Of Understanding                                 for entering into the joint<\/p>\n<p>venture.    The respondent paid a sum of Rs. Five lakhs as<\/p>\n<p>advance.     The appellant, on the other hand,                                                given an<\/p>\n<p>undertaking stating             the total number of active customers, the<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                2<\/span><\/p>\n<p>monthly revenue and monthly profits of his existing business. He<\/p>\n<p>also undertook that the network generates a monthly profit of<\/p>\n<p>Rs.4,31,000\/- and that the total value of the business owned by<\/p>\n<p>him at the time of execution of the agreement was Rs. 80 lakhs.<\/p>\n<p>60% of the value was agreed to be purchased by the respondent<\/p>\n<p>herein and they executed a joint agreement          and a further<\/p>\n<p>amount of Rs. 19 lakhs was paid by the respondent herein.<\/p>\n<p>Thus a total of Rs.24 lakhs had been paid by the respondent.<\/p>\n<p>There are other conditions also between the parties.       It was<\/p>\n<p>contended that though the income generated from the joint<\/p>\n<p>venture was agreed to be shared between the parties in the ratio<\/p>\n<p>of 60:40, no amount had been paid to the respondent herein.<\/p>\n<p>The rest of the contentions are not relevant at this stage.<\/p>\n<p>     2. The appellant herein admitted the joint agreement<\/p>\n<p>entered into between the parties, but contended that they had<\/p>\n<p>large business in   Ernakulam district, specified area in Cherai<\/p>\n<p>having 1485 direct connections and 12,000 link connections at<\/p>\n<p>the time of signing the Memorandum Of Understanding and<\/p>\n<p>joint venture agreement.      It was contended by the appellant<\/p>\n<p>herein that after the agreement, the respondent deliberately<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                 3<\/span><\/p>\n<p>with an intent to catch the entire business run by the appellant<\/p>\n<p>herein, given the connections at the specified area of the<\/p>\n<p>appellant. Contrary to the various conditions mentioned in the<\/p>\n<p>joint venture agreement, they also        gave thousands of link<\/p>\n<p>connections    in the specified area, as a result of which the<\/p>\n<p>appellant had to suffer loss of about Rs.3 lakhs till 14.11.2008 for<\/p>\n<p>non payment of subscription amount by the subscribers, since<\/p>\n<p>the respondent&#8217;s agents are collecting subscriptions by giving<\/p>\n<p>direct connections in the specified area of the appellant.   It was<\/p>\n<p>also stated that a notice was issued on 06.12.2008 stating that<\/p>\n<p>due to the breach of conditions of agreement by the respondent,<\/p>\n<p>the appellant had suffered a loss of Rs. 8 lakhs till 06.12.2008<\/p>\n<p>and that they are rescinding the agreement dated 29.09.2008.<\/p>\n<p>     3. The court below marked Exts. P1 to P4 and Exts. R1 to<\/p>\n<p>R5 for the limited purpose of disposal of the petition. The interim<\/p>\n<p>direction sought for was to direct the appellant to furnish<\/p>\n<p>security for Rs.34,34,400\/-.      Necessary issues were framed<\/p>\n<p>including whether the respondent was entitled to get an<\/p>\n<p>injunction order restraining the appellant herein from collecting<\/p>\n<p>the amount from the Cable T.V. subscribers of the joint venture.<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                 4<\/span><\/p>\n<p>The court below, after consideration of the plea raised between<\/p>\n<p>the parties    and also referring to the documents      produced,<\/p>\n<p>passed an interim order, by which the appellant was directed to<\/p>\n<p>furnish   bank guarantee for Rs.10 lakhs in the name of the<\/p>\n<p>District Court for a period of two years and also to deposit 25%<\/p>\n<p>of the gross total income of the business every month before the<\/p>\n<p>District Court towards share of the respondent herein without fail<\/p>\n<p>and appointed the appellant as the Receiver. The appellant was<\/p>\n<p>also directed to submit the monthly account before the District<\/p>\n<p>Court . It was also made clear that in case of failure to comply<\/p>\n<p>with the directions issued as aforesaid, the direction to appoint<\/p>\n<p>him as Receiver will be terminated and an official receiver will be<\/p>\n<p>appointed to manage the business.\n<\/p>\n<p>       4. Thus it can be seen that the Court, with a view to watch<\/p>\n<p>the conduct of the parties and having been prima facie satisfied,<\/p>\n<p>thought it fit to appoint the appellant herein as the Receiver with<\/p>\n<p>liability to account, directed the appellant to furnish bank<\/p>\n<p>guarantee for Rs. 10 lakhs and to deposit 25% of the gross<\/p>\n<p>total income of the business every month.\n<\/p>\n<p>       5. Adv. Mr. Dinesh R. Shenoy, the learned Counsel for the<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                5<\/span><\/p>\n<p>appellant submitted that the directions to furnish bank guarantee<\/p>\n<p>works out much hardship to him and that instead of furnishing<\/p>\n<p>bank guarantee for Rs.10 lakhs, he prayed that, it may be<\/p>\n<p>modified so as to enable him to furnish it by way of immovable<\/p>\n<p>property.   Incidentally, he has also requested that        some<\/p>\n<p>modification in respect of the direction to deposit 25% of the<\/p>\n<p>total income may also be made.\n<\/p>\n<p>      6.  The learned Counsel appearing for the respondent<\/p>\n<p>submitted that the appellant had disposed of more than 11 items<\/p>\n<p>of property and therefore substituting the security by way of<\/p>\n<p>immovable property will not instill any confidence.       He also<\/p>\n<p>prays that if he is appointed as the Receiver, he is prepared to<\/p>\n<p>comply with the above conditions.\n<\/p>\n<p>      7. We are not proposing to go into the rival claims made by<\/p>\n<p>the parties as they are matters for adjudication by appropriate<\/p>\n<p>forum in accordance with the arbitration clause contained in the<\/p>\n<p>agreement.    The limited question for consideration is as to<\/p>\n<p>whether   the   conditions  imposed     are   onerous   and  any<\/p>\n<p>modification  is necessary to reduce the hardship, if any, in<\/p>\n<p>enforcing the conditions. We find that the direction to furnish<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                 6<\/span><\/p>\n<p>security for Rs.10 lakhs by way of bank guarantee may cause<\/p>\n<p>undue hardship to the appellant. Rather, it will be sufficient, if<\/p>\n<p>the same is reduced to Rs. Five lakhs and for the balance amount<\/p>\n<p>of Rs. Five lakhs,    to furnish security by way of immovable<\/p>\n<p>property.    But we do not propose to make any variation<\/p>\n<p>regarding the deposit of 25% of the total income, at this stage.<\/p>\n<p>However, since the appellant is appointed as the Receiver, he is<\/p>\n<p>bound to account the income generated from the business. If the<\/p>\n<p>disputes are not    finally settled within another period of six<\/p>\n<p>months, it will be open to him to convince the Court that the<\/p>\n<p>direction to   deposit 25% of the total income in the factual<\/p>\n<p>situation  requires some modification. In that event, the court<\/p>\n<p>will consider such   request and pass appropriate orders, after<\/p>\n<p>hearing both the parties. With regard to the direction to the<\/p>\n<p>appellant to furnish bank guarantee for Rs.10 lakhs, we modify<\/p>\n<p>the same by directing to furnish Bank guarantee for an amount<\/p>\n<p>of Rs. Five lakhs  and to deposit the bank guarantee before the<\/p>\n<p>court below. The appellant shall furnish security for the balance<\/p>\n<p>amount by way of immovable property. For that purpose, a list<\/p>\n<p>of items of immovable property along with the title documents<\/p>\n<p>ARBITRATION APPEAL NO. 51 OF 2009<\/p>\n<p><span class=\"hidden_text\">                                 7<\/span><\/p>\n<p>be furnished before the court below          with notice to the<\/p>\n<p>respondent herein.    In such an event, the court below, after<\/p>\n<p>hearing the parties, will accept such of those properties as are<\/p>\n<p>found to be under the legal ownership of the appellant and are<\/p>\n<p>found to be sufficient    to discharge his liability of furnishing<\/p>\n<p>security to the satisfaction of Rs.5 lakhs. The order passed by<\/p>\n<p>the court below is modified to the above extent.<\/p>\n<p>      In view of pendency of the matter before this court, the<\/p>\n<p>time for compliance, as stipulated in the order of the court below,<\/p>\n<p>is extended by two weeks from today.\n<\/p>\n<\/p>\n<p>                                        P.R. RAMAN,<br \/>\n                                           JUDGE.\n<\/p>\n<p>                                 P.R. RAMACHANDRA MENON,<br \/>\n                                          JUDGE.\n<\/p>\n<p>lk<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court M\/S. C Sat Cable Vision vs M\/S. Asianet Satellite &#8230; on 8 December, 2009 IN THE HIGH COURT OF KERALA AT ERNAKULAM Arb.A.No. 51 of 2009() 1. M\/S. C SAT CABLE VISION, &#8230; Petitioner Vs 1. M\/S. ASIANET SATELLITE COMMUNICATION &#8230; Respondent For Petitioner :SRI.DINESH R.SHENOY For Respondent :SRI.SAJI VARGHESE The Hon&#8217;ble [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-175379","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S. C Sat Cable Vision vs M\/S. 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