ALT Digital Media Entertainment Limited (“Petitioner”), a media and entertainment company operating the over the top ("OTT") platform “ALTT” filed a Petition against MX Media and Entertainment PTE Ltd (“Respondent”), the owner of OTT platform “MX Player” before the Delhi High Court for non-payment of Petitioner’s outstanding dues. The outstanding dues are payable to the Petitioner under a Term Sheet dated 23rd February 2022, wherein the Petitioner with its expenses, bonafide produced the Audio-Visual non-fiction reality show titled “Lock Upp” (“Show”) and Respondent was granted, exclusive rights to distribute the said Show on MX Player on a video on demand basis. Whilst Respondent was obligated to pay 75 per cent of the production costs for the Show, the Respondent partially complied with payment terms under the Term Sheet and enriched itself by streaming the Show on MX Player. Despite without prejudice settlement discussions, no settlement was arrived at between the parties.
The Respondent, being an entity registered in Singapore is presently undergoing liquidation proceedings under the laws of Singapore. The liquidation proceedings are presently stayed by the Court in Singapore till 20th June 2024, to enable the Respondent to enter into an agreement for sale of its assets and business to a third-party. As per news reports, Respondent has agreed to sell its key assets to Amazon at an amount of USD 100 million. The Delhi High Court upon considering the said fact and hearing the parties at length on 10th June 2024, passed an interim order dated 10th June 2024 (“Order”), whereby the Respondent is inter alia directed to retain a sum of Rs. 5,00,00,000/- (Rupees Five Crores Only) towards the claims of the petitioner from the sale of assets if any till next date.
The said Order and directions by the Delhi High Court secure the monetary interest of the Petitioner, and also substantially protects the rights of the Petitioner under the Term Sheet to recover its dues.
ALT Digital Media Entertainment Limited was represented by Senior Advocate Mr. Sandeep Sethi and Advocate Mr. Harsh Kaushik instructed by ANM Global, Advocates and Legal Consultants team comprising of Mr. Purazar Fouzdar, Mr. Kuber Wagle, Mr. Gaurav Suryavanshi, Ms. Ruddhi Bhalekar and Mr. Deepank Singal.
