Zee told to pay just part of the money due to Klassic Studios

In a relief to Zee Entertainment, the Bombay High Court passed an order asking it to pay just a part of the money due to Klassic Studios & Films and not the full amount as directed by an arbitration panel.

The single bench of Justice RD Dhanuka ruled that even though the contract between the two companies was terminated, the money paid by Zee Entertainment towards the artistes on behalf of the respondent is deductible from the actual dues.

Klassic Entertainment had entered into an agreement with Zee for the production of the television serial 'Maayka-Sath Zindagi Bhar Ka’.

Both the parties entered into an agreement for production of the serial for Rs 4.7 lakh per episode. However, a dispute arose between the respondent and the writer of the daily serial. By then, 93 episodes were produced by the respondent. According to a copy of the order, Klassic Studios asked Zee to increase the consideration to Rs 5.7 lakh per episode after the completion of 51 episodes.

But, the Subhash Chandra-founded company did not oblige and also terminated the contract with the studio. After the termination of the contract, both parties approached arbitrators where the studio claimed Rs 4.6 crore with interest. The arbitrator ruled in favour of the studio. Zee Entertainment then approached the Bombay High Court challenging the arbitration ruling.

In the High Court, Jitendra Jain, representing Zee Entertainment, argued that Rs 64 lakh was being paid by the channel to the artists after the termination of the agreement and that this was not considered.

Source: http://cablequest.org/news/legal-news/item/647-zee-told-to-pay-just-part-of-the-money-due-to-klassic-studios.html
Source: http://cablequest.org/news/legal-news/item/647-zee-told-to-pay-just-part-of-the-money-due-to-klassic-studios.html