The Delhi High Court order secures Endemol's outstanding dues of Rs. 2,65,70,786/- from the proceeds of MX Media and Entertainment's asset sale.
Endemol Shine India Limited (“Endemol”), the Production house popularly known for its reality television shows such as ‘MasterChef’ and the ‘Bigg Boss’ franchise, has joined the bandwagon of claims against MX Media and Entertainment PTE Ltd (“MX”), the owner of OTT platform known as “MX Player”. Endemol initiated proceedings against MX by filing a Petition under Section 9 of the Arbitration & Conciliation Act, 1996 before the Delhi High Court for non-payment of Endemol’s outstanding dues. The parties along with One Way Films Private Limited, the Licensor of the program, had entered into a Line Production Facilitation Agreement dated 23rd June 2022, wherein the Endemol was to carry out the entire line production work of the 6 episodes of Audio-Visual non-fiction reality show titled ‘Kumite 1 Warrior Hunt’ (“Program”) and MX would repay the entire expenses and the production fees to them. Endemol carried out the work as required and produced the Program and handed it over to MX for streaming. MX has thereafter distributed and monetized the Program on a video on demand basis and enriched itself by streaming the Program online on MX Player. After Endemol invoked arbitration against MX, several without prejudice offers to release the monies due to Endemol were made and discussions took place between the parties, however, no conclusive settlement whatsoever was arrived at between the parties.
MX, being an entity registered in Singapore is already undergoing liquidation proceedings under the laws of Singapore. The liquidation proceedings were briefly stayed by the Court in Singapore, to enable MX to enter into an agreement for sale of its assets, particularly MX Player, and its business to a third-party. As per several news reports, MX had agreed to sell its key assets to Amazon. On the basis of the admissions made by to the above by the Counsel appearing for MX, the Delhi High Court has considered the ongoing sale and passed orders in favour of Sony and Alt Digital protecting similar claims for non-payment of dues against MX.
Considering the admitted claim of Endemol, the admissions with regards to the sale of assets made by MX and the orders passed by co-ordinate benches of the Delhi High Court, the Court was pleased to direct MX to retain a sum of Rs. 2,65,70,786/- (Rupees Two Crores Sixty Five Lakhs Seventy Thousand Seven Hundred and Eighty Six Only) being the principal amount owed to Endemol, out of the proceeds of the sale of the assets of MX that was ongoing.
The Order and directions granted by the Delhi High Court today fairly secure the monetary interest of the Endemol, and also substantially protects the rights of Endemol under the Line Production Agreement to recover its dues.
Endemol Shine India Limited was represented by Senior Advocate Dayan Krishnan and Advocate Harsh Kaushik instructed by ANM Global, Advocates and Legal Consultants team comprising of Purazar Fouzdar, Nidhish Mehrotra, Declan Fernandez, Deepank Singal and Mohit Bangwal.
