JioStar moved the court under Section 9 of the Arbitration and Conciliation Act seeking interim relief in a dispute related to media and commercial rights for the Legends League Cricket Masters T20 tournament.
The broadcaster sought orders restraining Absolute Legends Sports and Blue God Entertainment from creating third party rights or transferring or assigning media and commercial rights linked to the league.
During the hearing, senior counsel Abhimanyu Bhandari, appearing for Absolute Legends Sports, told the court that the company would file an affidavit disclosing all commercial transactions currently being undertaken, including agreements entered into with Blue God Entertainment.
The affidavit will be filed by all directors of the company and will disclose receivables arising from any commercial arrangements entered into by the firm.
Last month, Blue God Entertainment, formerly Indra Industries, acquired long term licensing rights for Legends League Cricket from Absolute Legends Sports for Rs 49 crore. The mix of a share swap and cash deal will see current promoters Raman Raheja and Vivek Khushalani become majority shareholders in Blue God Entertainment.
Under the agreement, Blue God Entertainment will hold long term commercial rights across media, sponsorship, franchise development and global content distribution for the league.Absolute Legends Sports further undertook that any amounts received from such commercial arrangements would first be deposited with the court in an account to be opened by the Registrar General towards satisfaction of admitted liabilities.
However, the company sought clarification that depositing receivables should not prevent it from meeting operational expenses required for its ongoing commercial activities.
Justice Harish Vaidyanathan Shankar noted that both parties were agreeable to exploring mediation and referred the matter to the Delhi High Court Mediation and Conciliation Centre. The court has listed the matter for further hearing on March 17.
Separately, JioStar India has also filed an insolvency petition against Absolute Legends Sports before the National Company Law Tribunal seeking initiation of corporate insolvency resolution proceedings under Section 9 of the Insolvency and Bankruptcy Code.
JioStar said the dispute relates to media rights and airtime sale agreements signed in September 2024 linked to Legends League Cricket. The broadcaster has claimed unpaid operational dues of about Rs 3.59 crore arising from invoices raised in September 2024.
It alleged that Absolute Legends Sports acknowledged the liability but failed to clear the dues despite reminders and a statutory demand notice issued in December 2024.
The NCLT had directed JioStar to file an affidavit on maintainability regarding how the present petition is not a recovery proceeding but an effort towards insolvency resolution. The applicant has also been directed to file a Record of Default Certificate from NeSL. The NCLT will hear the matter on March 16.
