Set Hopes To Evade Legal Wrangle With Worldtel

Sony Entertainment Television (SET) may manage to avert a legal battle with Mark Mascarenhas' WorldTel, which has threatened to sue SET over non-payment of advances totalling $0.75 million for coverage of cricket matches in Bangladesh.

According to the $17 million deal with SET, WorldTel was to produce and license to SET televison coverage of certain Bangladesh Cricket Board cricket tours. Sony is now rethinking future plans and has refused to pay up the advance for the upcoming series against Zimbabwe.

Kunal Dasgupta, CEO of SET India, said: "We are negotiating with WorldTel over the issue and are confident of settling the matter amicably. We do not believe that the matter would result in a litigation."

Earlier this month, Drew and Napier LLC, legal representatives of WorldTel, had served a notice to SET Satellite (Singapore ) to pay all amounts due under an agreement as well as to confirm the performance of certain obligations. The notice also threatened to sue SET in the absence of such payment and confirmation.

The agreement was signed on November 9, 2000, and specified 13 cricket tours that WorldTel would cover for SET, the territorial rights that SET would acquire, the fee that SET would pay and the schedule of payment. The comprehensive agreement was to be drawn later.

As per the agreement, according to the legal notice, WorldTel produced and delivered to SET, which accepted and telecast the inaugural test between India and Bangladesh which was held in November last year.

However, after WorldTel invoiced SET for a fee of $500,000, SET did not pay the amount and wanted the comprehensive agreement to be in place before payment. SET also claimed in a letter to WorldTel that there was no legal binding agreement between the two parties. However SET has subsequently paid the amount on October 9, company officials confirmed.

WorldTel has an agreement with the Bangladesh Cricket Board according to which it has to cover each tour set out in the agreement.

The current tussle comes in the wake of the impending tour by Zimbabwe to Bangladesh scheduled to commence on November 8, 2001. The first instalment of $750,000 under the agreement was due on September 24 , which is 45 days before the event and which SET has refused to pay in the absence of any formal agreement on the matter.