Bombay HC rejects Hindu plea for Deccan Chronicle

Televisionpoint.com Correspondent
The Bombay High Court has rejected the plea by The Hindu to restrain the Audit Bureau of Circulation (ABC) from issuing an \"ABC Certificate\" for the circulation of the Chennai edition of the Deccan Chronicle for the period JulyDecember 2005. The plea was made by Ms Kasturi and Sons, publishers of The Hindu, and was rejected by an order dated April 25, 2006, signed by Justice (Ms) Nishita Mhatre.

In a revealing comment, the publishers of The Hindu admitted in their plea that such a certificate issued to the Deccan Chronicle \"would adversely affect the circulation and advertising revenues of The Hindu\" and would \"also adversely affect the business interests of The Hindu, which has a dominant market share in Chennai.\" The statements implicitly recognised the fact that the Deccan Chronicle, which started printing in Chennai on March 28, 2005, had effectively eroded the claimed monopoly of The Hindu in Chennai.

Kasturi & Sons added that "there is every possibility that their advertising market would be hampered\" and claimed damages \"on account of losses and hardships they suffered."

In an affidavit, Hormuzd Masani, secretary-general of ABC, told the court that ABC believed in integrity and objectivity and had done surprise checks to verify the circulation of Deccan Chronicle. Masani noted that \"during the first surprise audit in January 2006, we were satisfied with the maintenance of publishers' books and records and had accordingly issued the Yellow Incoming Certificate containing the certified circulation figures of Deccan Chronicle, Chennai, for the audit period July-December 2005 based on audit of the second defendant's books and records\".

These surprise checks had been done in response to complaints made by The Hindu. Highly respected firms like M. Srinivasan & Associates, Chennai, along with bureau auditors Messrs Thakur Vaidyanathan Aiyer & Co, Chennai, and Messrs Ford Rhodes Parks and Company did the audits. The first did a surprise check on the presses of the Deccan Chronicle in Chennai on January 7, 2006 and submitted their report on January 24, 2006. Other surprise checks were done on January 30 and 31, 2006. A further surprise check was undertaken on March 22, 2006 by Messrs Ford Rhodes Parks and Company.

Masani asserted that ABC \"has at all times strived to maintain the highest standards of independence, accuracy and excellence.\" The court also rejected some other interim relief sought by The Hindu, as well as the claim for costs.

ABC told the Bombay high court that all relevant documents will be placed before the ABC council of management, which will decide as to whether a certificate should be granted to Deccan Chronicle for Chennai for JulyDecember 2005. The council of management of the ABC will decide the issue in accordance with the rules governing ABC, including the notifications issued by it from time to time. \"In view of this matter there is no need to grant ad interim relief. Hence ad interim relief is refused,\" Justice Mhatre said. She has given four weeks from April 25 for a reply and a rejoinder, if any, is to be filed within two weeks thereafter. The motion is made returnable after eight weeks.