Entertainment Network (India) Limited , the company behind Radio Mirchi, has achieved a significant legal victory with the Madras High Court Division Bench completely setting aside all contempt orders and dismissing proceedings initiated by The South Indian Music Companies Association (SIMCA).

Court's Decisive Ruling

The Madras High Court Division Bench delivered a comprehensive judgment on December 10, 2025, that provides complete relief to ENIL. The court's decision addresses multiple contempt petitions and appeals that had been pending since the original litigation began.

Key Legal Developments

The Division Bench's ruling encompasses several critical aspects of the ongoing music licensing dispute:

Complete Dismissal of Contempt Orders: All contempt proceedings initiated against the company have been dismissed in their entirety. The court found that contempt jurisdiction was not maintainable under the present circumstances.

Elimination of Financial Obligations: The court set aside the Single Judge's directions requiring ENIL to deposit 50% of alleged royalty dues. Additionally, requirements to furnish historical music play logs and compute alleged royalty amounts have been completely eliminated.

Court's Legal Reasoning

The Division Bench provided clear legal reasoning for its decision, emphasizing that contempt jurisdiction was not maintainable in the present facts. The court noted that the underlying order in the Civil Miscellaneous Appeals is currently under consideration before the Supreme Court, and the alleged monetary liability remains unquantified.

Background Context

This victory stems from a complex legal dispute involving music licensing rights between radio broadcasters and music rights holders. SIMCA had filed contempt petitions seeking enforcement of certain obligations, but the court found these proceedings legally unsustainable.

Company's Regulatory Compliance

In accordance with SEBI regulations, ENIL has promptly disclosed this significant legal development to stock exchanges. The company's filing confirms that no financial impact arises from the previously contested contempt orders, which now stand completely annulled.

Industry Implications

This comprehensive legal victory provides clarity for Entertainment Network (India) Limited's operations and removes uncertainties that had been hanging over the company's music licensing arrangements. The judgment reinforces the company's position in ongoing industry disputes regarding music rights and royalty obligations.

The court's decision to hear ENIL's case alongside similar appeals involving other industry players suggests broader implications for the radio broadcasting sector's approach to music licensing disputes.

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.