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  • Section 69 (2) of the Indian Partnership Act
  • Section 69 of the Indian Partnership Act
  • Section 69 of the Indian Partnership Act, 1932
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citation codes
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Disposition
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  • Section 69 (2) of the Indian Partnership Act
  • Section 69 of the Indian Partnership Act
  • Section 69 of the Indian Partnership Act, 1932
Smart Summary

Factual and Procedural Background

The petitions arise from disputes between multiple Multi Service Operators (petitioners) and MSM Discovery Pvt. Ltd. (respondent), a broadcaster/content aggregator governed by relevant regulations. After prolonged negotiations, the parties executed a Subscription Agreement dated 14.9.2012 for the period 01.10.2012 to 31.12.2012. The petitioners paid an advance subscription amount for three months and received IRD boxes from the respondent (except in one petition). Despite payment and supply, the respondent did not activate the IRD boxes. The petitioners filed these petitions seeking directions for activation of the decoder boxes, provision of counter-signed agreements, and entering into fresh agreements on the same terms after expiry.

Interim relief was sought to activate the boxes pending final hearing. The respondent sought time to file a reply but did not do so, instead arguing the interim matter. The respondent contested the validity of the agreements, noting they were not signed by the respondent and raised issues regarding the petitioners’ postal registration certificates and partnership firm registrations.

Legal Issues Presented

  1. Whether the respondent is obligated to activate the IRD decoder boxes supplied to the petitioners despite the respondent not having signed the Subscription Agreement.
  2. Whether the petitioners are entitled to activation of IRD boxes in the absence of valid postal registration certificates and registered partnership firms as required under Section 69 of the Indian Partnership Act, 1932.
  3. Whether Section 69 of the Indian Partnership Act, 1932 applies to the supply of signals to cable operators/distributors in these cases.

Arguments of the Parties

Petitioners' Arguments

  • The Subscription Agreement dated 14.9.2012 was duly executed by the petitioners and specifies the subscription period and monthly payment amounts.
  • Payment of subscription amount for three months was made in advance by post-dated cheques.
  • IRD boxes were supplied on 25.9.2012 (except for one petition), and the petitioners have repeatedly requested activation and a counter-signed copy of the agreement.
  • Section 69 of the Indian Partnership Act is not applicable to these cases as the distributor includes individuals, groups, firms, or organizations, not limited by the Act’s registration requirement.
  • Petitioners are willing to provide postal registration certificates immediately where expired.
  • Prior judgments of this Tribunal hold that Section 69 does not apply to supply of signals to cable operators.

Respondent's Arguments

  • The Subscription Agreements have not been signed by the respondent, and thus are not binding.
  • Some petitioners lack valid postal registration certificates as required.
  • Several petitioners are partnership firms without registered partnership deeds, which is mandatory under Section 69 of the Indian Partnership Act, 1932.
  • The respondent will activate IRD boxes only for petitioners with valid postal registration certificates and registered partnership firms.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Judgment of this Tribunal dated 27.7.2011 in Petition No. 67 (C) of 2009 Section 69 of the Indian Partnership Act is not applicable for supply of signals to cable operators. Supported the view that Section 69 does not apply to distributors in these cases.
Judgments dated 14.8.2012 in Petition Nos. 50 (C) of 2012 and 51 (C) of 2012 Section 69 of the Indian Partnership Act is not applicable for supply of signals to cable operators. Reinforced the Tribunal’s earlier position excluding Section 69 applicability.

Court's Reasoning and Analysis

The Tribunal examined the facts that the petitioners had executed agreements and paid the subscription amount in advance. Although the respondent had not signed the agreements, the petitioner’s payments and supply of IRD boxes were acknowledged by the respondent’s distributor. The respondent raised objections based on the absence of valid postal registration certificates and unregistered partnership firms, invoking Section 69 of the Indian Partnership Act, 1932.

However, the Tribunal referred to its previous decisions holding that Section 69 does not apply to the supply of signals to cable operators or distributors. The Tribunal found prima facie that the objections based on Section 69 were not applicable in these cases. The court balanced the equities by ordering interim activation of the IRD boxes for petitioners with valid postal registration certificates, without prejudice to the parties’ rights and contentions.

Holding and Implications

The Tribunal directed the respondent to activate the IRD boxes supplied to the petitioners within three days from the date of the order, subject to the petitioners having valid postal registration certificates.

This interim order does not affect the substantive rights of the parties and is without prejudice to any further orders. The decision clarifies that Section 69 of the Indian Partnership Act, 1932, does not apply to the supply of signals to cable operators/distributors in this context. No new precedent beyond the reaffirmation of earlier Tribunal rulings was set.

    Sree Devi Digital Systems (Anakapalle) v. Msm Discovery Pvt. Ltd. .

    TELECOM DISPUTES SETTLEMENT & APPELLATE TRIBUNAL

    NEW DELHI

    Dated 3rd December, 2012 Petition No. 827 (C) of 2012

    Sree Devi Digital Systems (Anakapalle) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 828 (C) of 2012

    Sree Konark Digital Systems (Srikakulam) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 829 (C) of 2012

    Sree Devi Digital Systems (Tuni) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 830 (C) of 2012

    Sree Devi Digital Systems (Vizianagaram) …Petitioner

    Page 1 of 8

    Vs. MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 831 (C) of 2012

    Sree Devi Digital Systems (Rajahmundry) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 832 (C) of 2012

    Eswara Communications (Vijaywada) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 833 (C) of 2012

    Vijay Communications (Krishna) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Petition No. 834 (C) of 2012

    Sree Devi Enterprises (Kakinada) …Petitioner Vs.

    MSM Discovery Pvt. Ltd. …Respondent

    Page 2 of 8

    BEFORE:

    HON'BLE MR. P.K.RASTOGI, MEMBER

    For Petitioner : Mr. Jayant K. Mehta, Advocate Mr. Sharath Sampath, Advocate

    For Respondent : Mr. A.C. Mishra, Advocate Ms. Vidya Prabhakaran, Advocate

    ORDER

    Petitioners in these petitions are a Multi Service Operators and the Respondent is a Broadcaster/Content Aggregator as described under the Regulations.

    2. Petitioners claimed that after the long process of negotiations between the parties, the commercial terms of the Subscription Agreement were settled and the parties entered into a Subscription Agreement dated 14.9.2012 for the period 01.10.2012- 31.12.2012.

    3. On 25.9.2012, the IRD boxes were supplied to the Petitioner in all matters except in Petition No. 833 (c) of 2012 and the payment for IRD Boxes was also made to the Respondent on 11.10.2012. According to the

    Page 3 of 8

    Petitioner, an advance of Subscription Amount of three months for the months of October, 2012, November, 2012 and December, 2012 was paid on 14.9.2012 at the time of execution of the agreement but the Respondent has not yet activated the IRD boxes. Therefore, the Petitioner has filed these petitions inter-alia for the following reliefs:-

    (i) Direct the Respondent to activate the decoder boxes of its channels issued to the Petitioner;

    (ii) Direct the Respondent to provide counter signed copy of the Agreements.

    (iii) Direct the Respondent to enter into a fresh agreement with the Petitioner from the date of expiry of the period of three months on the same terms and conditions.

    4. In its interim prayer, the Petitioners requested to direct the Respondent to activate the decoder boxes of its channels pending final hearing in the matter.

    5. The Respondent asked time to seek final instructions and time to file a short reply. When the matter was called for hearing on the interim matter on 23.11.2012, the Respondent did not file the reply, however, he argued on the interim matter.

    Page 4 of 8

    6. Mr. Jayant Mehta, learned counsel appearing on behalf of the Petitioner brought to our notice the copy of the agreement signed on 14.9.2012. The agreement shows the document number as well as period of validity starting from 01.10.2012 to 31.12.2012. The validation form shows the monthly amount to be paid to the Respondent.

    7. However, Mr. A. C. Mishra, learned counsel appearing on behalf of the Respondent pointed out that these agreements have not been signed by the Respondent. It is noticed that these agreement have been signed only by the Petitioners. The counsel has shown the payment of subscription amount dated 14.9.2012 for three months by way of post-dated cheques of 31.10.2012, 30.11.2012 and 31.12.2012 for an amount of Rs.54,836/- in Petition No 827 (C) of 2012. This paper is at page 31 of the paperbook, which shows that the distributor of the Respondent has received the same. Similarly a document dated 25.9.2012 has been shown which shows that IRD boxes has been supplied to the Petitioner where the distributor of the Respondent as well as the Petitioners have signed.

    8. The Petitioner has reminded the Respondent on 5.11.2012 wherein the Respondent was requested to activate the IRD boxes as well as return the counter-signed copy of the agreement signed between the parties on

    14.9.2012.

    Page 5 of 8

    9. The Respondent was reminded again on 12.11.2012. The Respondent has produced a chart before us about these petitions. We may reproduce the letter dated 5.11.2012 as under:-

    S.No. Petition No. Nature of Firm Status of P&T Certificates
    1. 827 (C) of 2012 Sole Proprietary Expired on 31.7.2012
    2. 828 (C) of 2012 Partnership Expired on 13.6.2012
    3. 829 (C) of 2012 Sole Proprietary Expired on 15.7.2012
    4. 830 (C) of 2012 Sole Proprietary Valid till 2.3.2013
    5. 831 (C) of 2012 Sole Proprietary Valid till 16.3.2013
    6. 832 (C) of 2012 Partnership Expired on 27.10.2012
    7. 833 (C) of 2012 Partnership Valid till 18.6.2013
    8. 834 (C) of 2012 Partnership Expired on 09.10.2012

    10. Mr. A.C. Mishra, learned counsel contends that the subscription amount has not been signed by the Respondent, therefore, the agreement copy produced by the Petitioner is not binding on it. In Petition No. 827 (C) of 2012, No. 828 (C) of 2012, No. 829 (C) of 2012, No. 832 (C) of 2012 and Petition No. 834 (C) of 2012, there is no valid postal certificate as on date. Similarly, the Petitioners in Petition Nos. 828 (C) of 2012, 832 (C) of 2012, 833 (C) of 2012 and 834 (C) of 2012 are the partnership firms but registered partnership deal has not been filed. Therefore, the Petitioners are not entitled for the activation of the IRD boxes.

    Page 6 of 8

    11. Mr. Mehta, learned counsel has pointed out that although these petitions has been filed on 19.11.2012, the Respondent has chosen to send an e-mail to the Petitioner on 22.11.2012 after filing of these petitions. This e-mail does not mention anywhere that the agreement between the party has not been executed. The Respondent has raised an issue of Postal Registration Certificate for the first time. Mr. Mehta, submits that he is ready to submit the Postal Registration Certificate immediately to the Respondent wherever period of registration has expired.

    12. Mr. Mishra, learned counsel later agreed that the Respondent will activate the IRD boxes of the Petitioners in the petitions having valid Postal Registration Certificates. However, he has a strong objection for activation of those IRD boxes wherever the partnership firm has not been registered as according to him, it is necessary that partnership firm should be registered as required under Section 69 of the Indian Partnership Act, 1932.

    13. Mr. Mehta, has brought to our notice that Section 69 of the Indian Partnership Act, 1932 is not applicable in these cases, as the distributor of TV channel means any person including an individual and group of persons, public or body corporate firm or any organization.

    Page 7 of 8

    14. Mr. Mehta has also brought to our notice a judgment of this Tribunal dated 27.7.2011 in Petition No. 67 (C) of 2009 and in judgement dated 14.8.2012 in Petition No. 50 (C) of 2012 and 51 (C) of 2012 wherein it was held that Section 69 of the Indian Partnership Act is not applicable for supply of signals to the cable operators.

    15. In view of our clear findings in various judgements, prima-facie, I am of the view that Section 69 (2) of the Indian Partnership Act is not applicable in these cases, where the Petitioners seek signals of the Respondent.

    16. Therefore, in view of the aforementioned reasons by way of interim order, it is directed that Respondent will activate the IRD Boxes supplied to the Petitioner within a period of three days from the date. However these orders will be without prejudice to the rights and contentions of parties and is subject to any other or further orders.

    …..……….. (P.K. Rastogi) Member

    HKC/

    Page 8 of 8

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    Comments

    Sree Devi Digital Systems (Anakapalle) v. Msm Discovery Pvt. Ltd. .
    (Dec 3, 2012)