The Arbitral Tribunal has rejected the claims filed by Zee Entertainment Enterprises (ZEEL) and Margo Networks, its subsidiary, against RailTel Corporation of India.
ZEEL and Margo Networks have initiated arbitration proceedings, alleging wrongful termination of its Content on Demand Agreement and the forfeiture of amounts by RailTel.
Furthermore, the tribunal has also rejected the counterclaims made by RailTel.
As per reports, the company had signed a Content on Demand Agreement with RailTel to provide media content at Wi-Fi-enabled railway stations. However, RailTel terminated the contract in November 2021.
In a regulatory filing ZEEL said, “The Company and Margo Networks (‘Margo’) a subsidiary of the Company, have initiated arbitration proceedings against wrongful termination of the Content on Demand Agreement by the RailTel Corporation of India (‘RailTel’) and claimed the amounts wrongfully forfeited by RailTel along with cost/damages.”
It added, “The Arbitral Tribunal vide its Arbitral Award has rejected the said claims filed by the Company and Margo against RailTel.”
The company also said that it is evaluating the option of applying or appealing before the appropriate Court for setting aside the Arbitral Award.
