Bombay High Court Refuses To Enforce Producers Association Award Directing ALTT To Pay Rs 1.57 Crores To Makers Of 'Mentalhood' Web Series

The Bombay High Court recently refused to enforce an award of the Western India Film Producers’ Association (WIFPA) directing Balaji Telefilms' OTT unit ALTT to pay Rs. 1,57,00,000/- to makers of the web series “Mentalhood”.

Justice SM Modak held that the decision of the Disputes Settlement Committee of WIFPA cannot be enforced as an arbitral award in the absence of an arbitration agreement between parties of the dispute, if one of the parties is not a member of WIFPA.

“there is neither arbitration clause nor there is arbitration agreement. I do not think that merely because the Respondent has participated before the Dispute Settlement Committee, he is estopped from making grievance. Mere participation in a proceeding before DSC does not upgrade the proceeding as arbitration proceeding. The Committee can get jurisdiction only when there is an agreement”, the court held.

Film Farm India Pvt Ltd and ALT Digital Media Entertainment Ltd. entered into a production agreement to web series ‘Mentalhood’. A dispute arose and Film Farm India referred it to the Dispute Settlement Committee of WIFPA with a claim of Rs.1,79,50,000/-. An Award dated March 5, 2021, was passed directing ALT Digital Media to pay Rs.1,57,00,000/- to Film Farm, the producer. Film Farm India filed the present commercial execution application to enforce the award.

Film Farm filed an interim application seeking to restrain ALT Digital Media from creating third party rights in "Mentalhood" web series, and ALT Digital filed another interim application seeking rejection of the Commercial Execution Application.

The question before the court was whether the WIFPA's decision could be classified as an award under the Arbitration and Conciliation Act, 1996.

Advocate PM Havnur for Film Farm India Pvt. Ltd. contended that the WIFPA decision was enforceable as an arbitral award. He pointed out that the Articles of Association of WIFPA contain provisions for the resolution of disputes through the Dispute Settlement Committee. The proceedings before the Committee follow a similar procedure as arbitration and the decision of the committee has to be treated as an award, he argued.

Advocate Rashmin Khandekar for ALT Digital Media Entertainment Ltd. argued that it is not a member of WIFPA and thus, without an arbitration agreement its decision cannot be considered an arbitral award. Participation in the Dispute Settlement Committee did not automatically qualify the proceedings as arbitration and that the jurisdiction of the Courts of Mumbai was indicated in the production agreement, he said. He contended that the proceedings before the Disputes Settlement Committee could at most considered to be conciliation.

The court noted that there was no explicit arbitration clause or agreement between the parties and ALT Digital Media is not a WIFPA member. The court observed that the provisions of the production agreement designated the jurisdiction of the courts, highlighting the parties' intention to seek legal redress through the court system. The court held that mere participation in the proceeding before the Committee did not convert the proceedings into arbitration.

The court concluded that the absence of an arbitration clause in the production agreement, as well as the non-membership of ALT Digital Media in the WIFPA, rendered the decision not enforceable as an arbitral award under the Arbitration and Conciliation Act. The decision of the Disputes Settlement Committee can only be considered a private tribunal's decision, the court observed.

In light of this, the Execution Application itself did not survive, the court held. Consequently, the court dismissed the interim application filed by Film Farm India Private Limited and allowed the application filed by ALT Digital Media Entertainment Limited.

Advocates PM Havnur, Sanjay Kharat, and Prajakta Jagtap represented Film Farm India Pvt. Ltd.

Advocates Rashmin Khandekar, Hemangi Abhyankar, and Ruddhi Bhalekar i/b. ANM Global represented ALT Digital Media Entertainment Ltd.

Case no. – Comm. Execution Application (L) No. 19641 of 2022

Case Title – Film Farm India Pvt Ltd v. ALT Digital Media Entertainment Ltd.

Click Here To Read/Download Order