“This is to inform you that the Arbitral Tribunal vide its Arbitral Award has rejected the said claims filed by the Company and Margo against Railtel,” according to a regulatory filing from Zee Entertainment.
Zee Entertainment Enterprises Ltd (ZEEL) and its subsidiary had initiated arbitration proceedings, opposing “wrongful termination of the Content on Demand Agreement” by Railtel, and claimed the amounts wrongfully forfeited by the public sector undertaking.
Further, the Arbitral Tribunal has also rejected the counterclaims made by Railtel, it added.
“The company is evaluating the option of filing an application/appeal before the appropriate Court for setting aside of the Arbitral Award,” it added.
Margo Networks, a subsidiary of ZEEL, had entered into a content-on-demand (COD) contract with RailTel Corporation of India for providing media content in all Wi-Fi-enabled railway stations. The contract, which was on a build-own-operate basis for 10 years, was terminated by RailTel, ZEEL had earlier informed in a regulatory filing in November 2021.
Following this, ZEEL initiated legal proceedings.
