Entertainment Network (India) Limited (ENIL), the company behind Radio Mirchi, has received a favorable interim ruling in its ongoing legal battle with The South Indian Music Companies Association (SIMCA). The division bench of the Madras High Court has granted a stay on a previous single judge order, marking a significant development in the case.

Key Developments

• The Madras High Court division bench has stayed the order of a single judge in the ENIL vs SIMCA case.
• ENIL's appeal has been tagged to be heard alongside a related appeal involving Phonographic Performance Limited (PPL).
• The interim stay will remain in effect until the next hearing, for which a date is yet to be scheduled.

Background of the Litigation

The litigation was initiated by SIMCA against Entertainment Network (India) Limited in the Madras High Court. While the specifics of the original case are not detailed in the available information, it appears to be related to the music industry, possibly concerning licensing or royalty issues.

Company's Disclosure

In compliance with the Securities and Exchange Board of India (SEBI) regulations, ENIL has made a formal disclosure regarding this legal development. The company stated in its filing:

"The order was appealed before the division bench of Hon'ble Madras High Court. The bench was pleased to stay the order of single judge and tagged the appeal to be heard along with appeal against the order in the matter of Phonographic Performance Limited ('PPL'). Both will be heard together and until then the interim stay will continue."

Implications and Next Steps

This stay order provides temporary relief for Entertainment Network (India) Limited as it pursues its appeal. The decision to hear ENIL's appeal alongside the PPL case suggests that there may be similar legal issues at stake in both matters.

The company has assured stakeholders that it will provide updates on any material developments in this ongoing legal proceeding. As of now, the next hearing date has not been fixed, leaving the interim stay in place for the foreseeable future.

It's worth noting that according to the company's disclosure, there have been no changes in the status of any litigation against key management personnel, promoters, or the ultimate person in control of ENIL.

This legal development is significant for Entertainment Network (India) Limited and may have implications for the broader music and radio broadcasting industry in India. Stakeholders and industry observers will be keenly watching for the final outcome of this case and its potential impact on the relationship between broadcasters and music rights holders.

Entertainment Network (India) Limited , a prominent player in the Indian media and entertainment industry, has been directed by the Madras High Court to produce music logs and compute royalties for members of the South Indian Music Companies Association (SIMCA). This development comes as part of an ongoing legal dispute between the company and SIMCA.

Court Order Details

The Madras High Court, in its order dated August 26, 2025, has instructed Entertainment Network (India) Limited to:

1. Produce music logs for SIMCA members covering the period from August 2010 to December 2020.
2. Compute royalties payable at the needle-per-hour rate according to individual agreements with SIMCA members.
3. Furnish the computed royalties to the court within four weeks.

It's important to note that the court order does not require the company to make any immediate payments either to the petitioner or to the court.

Company's Response

Entertainment Network (India) Limited has announced its intention to appeal the order. The company stated in its regulatory filing that it is currently seeking legal advice to assess the potential impact and implications of the court's decision.

Compliance and Next Steps

The matter is scheduled for a compliance reporting on September 26, 2025. This gives the company approximately one month to prepare and submit the required information to the court.

Potential Financial Implications

While the exact financial implications of this order are yet to be determined, the company has assured stakeholders that it will make further disclosures if and when required, in compliance with applicable regulatory requirements.

Investor Considerations

As this legal matter unfolds, investors and stakeholders of Entertainment Network (India) Limited will likely be watching closely for any updates on the potential financial impact and the outcome of the company's planned appeal.

As the situation develops, market participants may want to keep an eye on any further announcements from the company regarding this legal matter and its potential effects on the company's financials and operations.