Zee Tv Files Closure Suit Against Philips
The Subhash Chandra-promoted Zee TV has filed a winding up petition through two associate companies against leading consumer electronics multinational Philips India for non-payment of dues. The petitions have been filed in the Calcutta High Court.
The petition has been filed by Asia Today Ltd (ATL), which owns the Zee bouquet of channels, and Ambience Space Sellers Ltd (ASSL). Ambience is the wholly owned subsidiary of Zee Telefilms (ZTL), which supplies software to ATL.
The Philips spokesperson did not comment on the issue when contacted.
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"Zee TV has tightened screws over the clients with long due outstandings. One such client is the electronics major Philips India Ltd, who has not made payments. Despite several reminders by Zee to clear the dues, Philips did not respond and Zee was constrained to move the court in the matter," according to a press release issued by Zee.
The Calcutta High Court has directed Philips to file its affidavit in reply by May 12, 1998.
The bone of contention is about Rs one crore to be paid by Philips, according to sources close to Zee. Philips, which used to sponsor the 'Philips Top 10' programme on Zee TV had entered into a contract for bringing in a certain amount of advertising revenue to Zee TV during the period of sponsorship.
However, it later said that it could not bring in the entire amount and sought an extension. Despite an extension, the multinational failed to bring in the money, sources added. This has led to the current litigation.
The two petitions filed by ATL and ASSL have been in the Calcutta High Court has been registered as Company Petition No 165 and 166, respectively, of 1998.
Philips India has been served with winding up petitions in both cases. The case was heard by Justice S K Sinha.