SC declines stay order for Sun Direct to pay Rs 2.5 cr

The Supreme Court today declined to stay the interim order of the broadcast tribunal TDSAT directing DTH operator Sun Direct to pay Rs 2.5 crore to sports broadcaster ESPN for receiving Hi Definition Feed (HDF) for Fifa cup and Wimbledon in 2010.

A bench headed by the Chief Justice S H Kapadia declined to interfere in the order passed by the Telecom Disputes Settlement and Appellate Tribunal asking the south-based DTH operator to pay Rs 2.5 crore.

The court also did not agree with the submission of Sun Direct that the cost was not reasonable in comparison to the normal cable rates.

"Cost of HDF appears to be very high. This has to be different," the court said observing "TataSky has already paid and what was the problem with you".

However, the apex court agreed to hear Sun Direct's plea against 24 per cent interest imposed by the tribunal on it and issued notice to ESPN.

The court was hearing two petitions filed by South-based Sun TV group firm challenging the orders of TDSAT, which had on December 16 last year set aside the interim tariff fixed by Trai asked to give their HDF to the DTH operators.

TRAI had asked ESPN to charge 10 times the normal cable rates from the Direct-To-Home operators. However TDSAT had said it was bad in law and not done following procedures.

TDSAT had also directed SUN Direct TV to pay Rs 2.5 crore to ESPN for its HD Feed for Fifa cup and Wimbledon as per its interim order.

"We are of the opinion that while making the Interim Order absolute in the case of Tata Sky, we direct Sun Direct also to pay to the Broadcaster on the same basis," the tribunal said.

During the Fifa cup, the tribunal had directed ESPN to enter into an agreement with DTH operators TataSky and Sun Direct TV for HD feed by paying Rs 2.5 crore, as there was no guidelines from Trai on this.

TataSky had paid the amount, but Sun Direct had not. Following it, the tribunal had directed Sun Direct to pay the amount to ESPN along with 24 per cent interest.