Informist, Wednesday, Sep 18, 2024

--Zee Ent: Star India seeks to declare alliance pact validly terminated

MUMBAI – Star India Pvt Ltd on Monday filed a statement before the London Court of International Arbitration, seeking to declare the alliance agreement with Zee Entertainment Enterprises Ltd as "validly terminated" by the company, according to an exchange filing by Zee Entertainment.

The Walt Disney Co-owned Star India has also sought damages to be determined as of the date of the tribunal's award along with costs, expenses and applicable interest until full payment. The damages quantified as of Aug 31, the proxy date of the award, were $940 mln, or around 78.69 bln rupees.

Zee Entertainment has refuted all claims and assertions made by Star India including its claims for damages. "The arbitration is at its initial stage and the LCIA Arbitral Tribunal is yet to determine if the company is liable in any manner. The company will, on merits, strongly contest all unfounded claims by Star and reserves all its rights," Zee Entertainment said.

In March, Star India initiated arbitration proceedings in London court against Zee Entertainment alleging non-compliance of terms of the sub-licencing agreement for television rights of International Cricket Council's men's events. It had earlier sent a letter to Zee Entertainment, through its legal counsel, alleging breach of the agreement for failing to pay the first instalment of $203.56 mln, or around 17.04 bln rupees, for the ICC rights.

Zee Entertainment and Disney Star had entered into a strategic licencing agreement in August 2022, through which Disney Star was to sub-licence the television streaming rights of ICC's flagship tournaments for four years to Zee Entertainment.

In April this year, Zee Entertainment had alleged that the sub-licencing agreement was repudiated because Star India breached the agreement. The Punit Goenka-led media company also sought a refund of 685.4 mln rupees that it claimed to have paid to Star India as part of the agreement.

At 1322 IST, shares of Zee Entertainment were down 1.1% at 131.55 rupees on the National Stock Exchange. End

US$1 = 83.76 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Darshan Nakhwa

Edited by Ashish Shirke

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