Connect with us

Headlines Of The Day

Delhi High Court directs MX Media to set aside millions for Sony from asset sales

The Delhi High Court on Monday directed MX Media & Entertainment Pte (Singapore) to reserve Rs 31.25 crore from asset sales, responding to a petition by Sony seeking to secure outstanding dues.

If the company sells any assets, this amount owed to Sony must be set aside, the court ordered. Sony will be informed through its legal representatives once the transaction is completed.

The legal battle between Sony and MX Media & Entertainment Pte, MXP Media India Ltd., and MX Media Co. (BVI) (United Kingdom) revolves around a distribution agreement dated Dec. 29, 2021.

This agreement granted MX Media non-exclusive rights to distribute content available on Sony’s SonyLIV application to users of MX Media’s platform.

The distribution agreement entered into force in 2021 and was valid until the end of March 2022, with an extension for an additional 12 months from April of the same year to March 2023.

According to the agreement, MX Media was granted specific rights, including the integration of the SonyLIV Service API and the provision of service thumbnails on the designated digital platform, subject to the terms and conditions outlined in the agreement. However, disputes arose between Sony and MX Media when MX Media failed to make timely payments to Sony, as per the terms of the distribution agreement.

Sony alleged non-payment of outstanding dues amounting to over Rs 31 crore by MX Media & Entertainment Pte and its affiliates, despite repeated reminders and communications acknowledging the debt.

Sony filed regular invoices for the services provided, but MX Media allegedly did not settle them.

MX Media’s financial troubles became apparent when DIVX LLC filed for winding up proceedings against MX Media in Singapore’s High Court. Although the winding-up order was initially granted, MX Media’s attempts to overturn it led to a temporary stay until June 20. This precarious financial situation prompted Sony to seek protective measures from the Delhi High Court.

Sony’s legal representation, led by Senior Advocate Gaurav Pachnanda from Karanjawala & Co., argued that MX Media & Entertainment Pte and its affiliates operate as a single economic entity. NDTV Profit

Copyright © 2023.Broadcast and Cablesat

error: Content is protected !!