Allowing Zee's appeal against a single judge bench order, a division bench headed by Justice Anil Dev Singh said an "exclusive" decision by Prasar Bharati and DD not permitting live coverage of the cine award function was "bad in law".

Setting aside the order of single judge bench which had rejected Zee's petition challenging DD's denial to telecast the award ceremony, the court, however, said Zee could not be allowed to promote its equity and brand name on DD's national network.

Zee Telefilms should not display its logo (during future telecast) of the programme, the court ruled.

DD had rejected two applications for live coverage of the award function on the ground that Zee Tlefilms was a rival channel and the national networkcould not promote the interests of a competitor.

The court clarified that it would be open to DD and Prasar Bharati to consider the question whether the cine award fulfilled requirements for telecast on the national network.

Any decision taken by DD in this regard "must" be communicated with reasons to Zee Telefilms, the court said adding the time and date for telecast would be decided by the Prasar Bharati and DD.

Zee Telefilms had applied for live coverage of 1998 `Lux Zee Cine Award' on February 27 and March 3 this year on DD saying that wide coverage to the programme could be given only through the national network.

Zee's petition said that DD which had approved the live telecast on March 14, backed out at the last moment while the private TV network had spent over Rs eight lakh on publication of the "poll forms" seeking public opinion on the best film, best actor/actress and best music among other categories.

The poll results were also to be announced during the live coverage, it said.

Zeehad further contended that the reach of cable network in the country was not more than 20 per cent and, therefore, it was thought proper to go for DD coverage considering the programme's "popularity".

It said DD had earlier telecast Film Fair, Videocon Cine Wards and Femina Miss World-1999 functions on the national network.

However, DD had contended that Zee Telefilms was its competitor in the market and the national network would not promote the interests of its rival.

DD further claimed that main purpose of the Zee Telefilms was to promote its business interests.