# In the matter of Ortel Communications Ltd. C.P. No. IB-761-(ND)-2018

> NCLT judgment dated 2018-11-27. Citation: TCN-2018-NCLT-00284. Sony Pictures Networks India Pvt. Ltd. filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 27 Nov 2018
- **Citation:** TCN-2018-NCLT-00284
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ortel-communications-ltd-cp-no-ib-761-nd-2018-b025b116

## Summary

### Background

Sony Pictures Networks India Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Ortel Communications Ltd. The application was based on unpaid subscription fees for TV channels supplied by Sony Pictures to Ortel Communications, a Multi System Operator (MSO). Multiple subscription agreements were in place for different areas and time periods. Sony Pictures issued disconnection notices to Ortel Communications in 2017 and 2018 due to non-payment.

## Facts

Sony Pictures Networks India Pvt. Ltd. (the Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Ortel Communications Ltd. (the Respondent), a Multi System Operator (MSO). The dispute arose from unpaid subscription fees for TV channels supplied by the Applicant to the Respondent. The parties had entered into multiple subscription agreements for various areas and time periods, specifically from 01.04.2017 to 31.03.2018 and 01.07.2017 to 31.03.2018. The Applicant issued disconnection notices to the Respondent in 2017 and 2018 under Regulation 6(1) and 6(5) of the Telecommunication (Broadcasting & Cable Services) Interconnection (Digital Addressable Cable Systems) Regulations, 2012, due to non-payment. In March

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## Issues and analysis

### Issue 1: Whether pay channels, conditional access systems, video links, and internet bandwidth and its links …

**Ratio:** The ratio is based on the interpretation of Section 14(2) of the Insolvency and

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**Reasoning:** The Tribunal reasoned that essential goods and services referred to in Section 14(2) of

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**Interpretation:** The interpretation of 'essential services' under Section 14(2) and Regulation

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**Application:** Applying the ratio and reasoning to the facts, the Tribunal concluded that the

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** Sony Pictures…
- **Respondents:** Ortel Communicatio…

## Timeline

- **2017-01-01 — Disconnection Notices…**: The Applicant issued a number of disconnection notices to the Respondent in 2017 as well…
- **2017-04-01 — Subscription A…**: Multiple Subscription Agreements for various areas for different time periods -…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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