In a move that has angered the Hindujas, Modi Entertainment Network (MEN), which distributes ESPN, has not renewed its contract with INCablenet, the cable wing of IN Network. Instead, MEN has signed a deal with Encore Electronics Ltd to distribute ESPN service. Encore is promoted by Kohli, Shah and Radhakrishnan.

To add salt to the injury, MEN switched off two decoders in the INCablenet head-ends of Borivali and Mira Road in the western sururbs of Mumbai.

Men seems to have acted at the behest of Encore, which had apparently informed MEN that the two distributors had not paid. The Borivali head-end got back the ESPN service last Saturday after the cable operator made the payment while Mira Road was switched on on Monday.

Not happy with the development, IndusInd moved theMumbai high court on Saturday. Their bone of contention: MEN switched off the decoders without notice. The case came up for hearing on Monday.

MEN informed the high court that on the expiration of the agreement with IndusInd Media on April 30, 1999, "MEN has entered into a separate contract with Encore for the distribution of ESPN service." A copy of the agreement with Encore was produced for perusal of the high court. "On this basis it was stated that the status quo as it existed throughout the month of May 1999 shall continue" with regard to the telecast of the World Cup cricket matches till the Cup final. "On this statement being made, no relief prayed for by IndusInd Media in the application was granted," claimed MEN in a faxed statement to The Financial Express.

Though IndusInd negotiated with MEN for the renewal of the contract, MEN was not happy with the terms. Sources said INCablenet wanted exclusive distribution rights over Mumbai which would have prevented MEN from giving decoders to any newhead-end. This would have pre-empted any moves that Kohli and his partners could take of breaking away from the Hindujas and starting new operations.

An IndusInd Media spokesperson, however, has denied this. "We have never made such a proposal to MEN," said the spokesperson.

According to the agreement signed with MEN, Encore has promised 11.12 lakh connections till the end of the World Cup. Encore, which has entered into a year-long contract with MEN, will have 1.25 lakh subscribers after the World Cup. INCablenet distributors have agreed to take ESPN service through Encore.This appears to have riled INCablenet. "How can Encore make commitments on behalf of INCablenet?" asked the IN Network spokesperson.

Sources said INCablenet had not paid MEN for the ESPN service for the months of March and April. Its agreement with MEN expired on April 30. Meanwhile, Encore signed the deal with MEN in the first week of May and the agreement came into effect from May 1.

Towards the second week of May, however,INCablenet sent a letter, signing the agreement with MEN unilaterally.