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2001 Supreme(Del) 1235

High Court Of Delhi
A.A.ASSOCIATES - Appellant
Versus
PREM GOEL - Respondent
Suit 1500 of 1995
Decided On : 09/06/2001

Advocates Appeared:
Harish Malhotra, NAVIN CHANDRA, PRATIBHA M.SINGH, S.MURALIDHARAN

The central legal point established in the judgment is the importance of the intention of the parties in determining the scope of distribution and telecasting rights in film agreements.

Headnote:

telecasting - Film Distribution Rights - 1. Indian Contract Act, 1872, Section 17, 2. Copyright Act, 1957, Section 14 - The court discussed the interpretation of the agreement between the parties and the legal provisions related to distribution and telecasting rights. It emphasized the importance of the intention of the parties in determining the scope of rights and referred to relevant circulars and case laws to support its decision. The court held that the plaintiff's rights were confined to theatrical rights in Delhi and UP and dismissed the suit.

Fact of the Case:

The plaintiff, a film distributor, filed a suit for recovery of damages and injunction against the defendants for telecasting a film without authorization. The defendants contested the suit, claiming that the plaintiff's rights were limited to theatrical rights only.

Finding of the Court:

The court found that the plaintiff's rights were confined to theatrical rights in Delhi and UP based on the interpretation of the agreement and relevant legal provisions. It also noted that a previous compromise did not restrict the defendants from contesting the current suit.

Issues: The issues included the scope of the plaintiff's rights, maintainability of the suit, and the claim for damages and injunction. The court found in favor of the defendants on all issues.

Ratio Decidendi: The court emphasized the importance of the intention of the parties in determining the scope of rights and held that the plaintiff's rights were limited to theatrical rights in Delhi and UP. It also clarified that a previous compromise did not prevent the defendants from contesting the current suit.

Final Decision: The court dismissed the suit, ruling that the plaintiff's claims were without merit and ordered the parties to bear their own costs.

V. S. AGGARWAL

( 1 ) M/s A A Associates, plaintiff is a registered partnership. It is carrying on business of film distribution, exhibition and exploitation of cinematographic films in the territory of Delhi and uttar Pradesh. It has filed the present suit for recovery of Rs. 5 lakhs on account of damages besides seeking a permanent injunction and mandatory injunction to restrain the defendants 2 to 4 from in any manner telecasting the film (Majboor) on doordarshan, ZEE TV, Satellite TV, Cable TV, Pay TV and other TVs. and defendant no. 1 should further be directed to restrain from making any payments of the telecasting charges to defendants 2 to 4.

( 2 ) THE facts alleged are that the plaintiff had acquired the sole and exclusive rights of distribution, exhibition and exploitation of the picture Majboor. An agreement in this regard was arrived at on 20/3/1987. The rights were available to the plaintiff uptil 9th July, 2007. Defendant no. 2 (M/s Suchitra Films Pvt. Ltd.) is a film producer of the said film. There was an agreement between defendants 1 and 2 and defendant no. 2 assigned the sole and exclusive rights of distribution, exhibition and exploitation of the said film uptil 9/7/2007, Defendant no. 1 in turn assigned the said rights to the plaintiff and he has been enjoying the said rights. It is the plaintiff, as per the agreement, who alone can deal with the rights of distribution, exhibition and exploitation pertaining to the said film. The commercial rights of the feature film has been purchased by the plaintiff and as per the plaintiff, it includes all circumstances unless expressly included including telecasting rights on television i. e. Doordarshan, Cable TV, Pay TV and other television channels.

( 3 ) SINCE the television has become popular therefore it is stated to be a matter of concern in the film trade and the respective associations of the distributors and producers have recognised the said telecasting rights and the Motion Picture Association which is a body looking after the interest have also issued various circulars from time to time to clarify that commercial rights in the distribution, exhibition and exploitation include in it the telecasting rights. The grievance of the plaintiff is that all of a sudden he was shocked to know the telecasting of the said film on Delhi Doordarshan on its national network on 2/2/1991. On enquiry it was revealed that defendant no. 2 in utter disregard of that fact had telecasted the said film on Delhi Doordarshan on the said date. Since the telecasting rights were illegal a civil suit was filed. During the pendency of that suit the defendants were restrained from receiving the payment the matter was settled and Rs. 90,000. 00 was paid to the plaintiff by virtue of the compromise. Thereafter, the plaintiff had continued to enjoy the said rights.

( 4 ) NOW it is asserted that the same film is being shown on different channels and defendant 2 has shown the said film on Delhi Doordarshan on 23/6/1995. Claiming that it is a breach of the agreement, civil suit has been filed claiming the damages.

( 5 ) NEEDLESS to state that in the written statement that has been filed the civil suit as such has been contested. M/s Suchitra Films states that it has no privity of contract with the plaintiff. It had granted distribution, exhibition and exploitation rights to defendant no. 1 (Prem Goel) by an agreement dated 9/7/1986. The distribution, exhibition and exploitation rights for the territory of Delhi and uttar Pradesh as known in the film trade means that right so granted are theatrical rights only. The said distributor, namely the plaintiff is entitled to exploit the said picture in cinema theatres within the territory of Delhi and UP. It has been pleaded that this definition of distribution, exhibition and exploitation rights is well accepted by the film trade. There are number of other rights which are vested in a feature film and are separately granted. For assigning the same to a




























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