Bombay High Court Upholds Arbitral Award In Polimer-Ultra Media 'Jai Hanuman' License Fee Dispute

The Bombay High Court on 5 March upheld an arbitral award directing Polimer Media Pvt Ltd to pay Rs. 30.45 lakh to Ultra Media and Entertainment Pvt Ltd in a dispute arising from a broadcasting license agreement for the television serial “Jai Hanuman.”

A Bench of Justice Gauri Godse held that the arbitral award did not warrant interference under Section 34 of the Arbitration and Conciliation Act.

The Court observed:

“Hence, in my view, by applying the standards as set out in the various decisions as discussed above, the arbitral award cannot be interfered with under Section 34 of the Arbitration Act. The petition is therefore dismissed.”

The dispute arose from a license agreement dated 5 December 2019, under which Ultra Media granted Polimer Media the right to broadcast 350 episodes of the serial “Jai Hanuman” on Polimer TV. The agreement fixed the license fee at Rs. 10,500 per episode, amounting to Rs. 36.75 lakh for the entire series, with broadcasts to continue until 30 November 2021 or until completion of all episodes.

Polimer Media telecast the first 60 episodes and paid the corresponding fees but ceased airing further episodes, citing poor audience response and declining TRP ratings. Ultra Media alleged breach of the agreement and issued a legal notice demanding Rs. 30.45 lakh for the remaining episodes.

Following arbitration proceedings, the sole arbitrator held that Ultra Media had been ready and willing to deliver the remaining episodes and that the contract obligated payment for the entire series. The arbitrator therefore directed Polimer Media to pay Rs. 30.45 lakh with interest and costs.

Polimer Media challenged the award under Section 34, contending that payment was due only for episodes actually broadcast and that the arbitrator had misconstrued the agreement.

Rejecting these arguments, the Court held that the arbitrator's view was reasonable and based on a “holistic reading of the contract.” Concluding its analysis, the Court said it cannot re-evaluate evidence or reinterpret contractual terms merely because another interpretation is possible.

Accordingly, the Court upheld the arbitral award in favour of Ultra Media.

For Petitioner: Advocates Akshay Doctor, Priyanka Dadpe, Aagam Doshi

For Respondent: Advocates Rashmin Khandekar, Pranav Nair, Jyoti Ghag, Shailesh Prajapati, Ankit Singhal i/b. Dua Associates