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High Court Of Delhi
MAGNUM FILMS - Appellant
Versus
GOLCHA PROPERTIES PRIVATE LIMITED - Respondent
Interim Application 4400 of 1982
Decided On : 11/26/1982
ARBITRATION - INJUNCTION - AGREEMENT - SPECIFIC PERFORMANCE - IRREPARABLE INJURY - BALANCE OF CONVENIENCE - SECTION 41(E) AND SECTION 14(1)(A) OF THE SPECIFIC RELIEF ACT - INTERPRETATION AND APPLICATION.
Fact of the Case:
Navketan Films and Magnum Films, both distributors of cinema films, had agreements with Golcha Properties, a cinema owner, for the screening of their respective films, "Swami Dada" and "Nikah", at Golcha Cinema. Navketan Films sought an injunction to restrain Golcha Properties from screening "Nikah" and to commence screening "Swami Dada" from a specified date, while Magnum Films sought an injunction to continue screening "Nikah" as long as it continued to collect a certain amount per week.
Finding of the Court:
The court found that the agreement in favor of Magnum Films was prior in time to that of Navketan Films and that there was no indication that the agreement in favor of Magnum Films was fabricated. The court also found that the balance of convenience favored Magnum Films as their film was running and drawing crowds, while Navketan Films' film had not yet been released.
Issues: 1. Whether an injunction could be issued to restrain Golcha Properties from screening "Nikah" and to commence screening "Swami Dada" from a specified date. 2. Whether an injunction could be issued to continue screening "Nikah" as long as it continued to collect a certain amount per week.
Ratio Decidendi: 1. The court held that a mandatory injunction, such as the one sought by Navketan Films, could only be issued in cases of extreme hardship and compelling circumstances, which were not present in this case. 2. The court held that the agreement in favor of Magnum Films was prior in time to that of Navketan Films and that there was no indication that the agreement in favor of Magnum Films was fabricated. The court also found that the balance of convenience favored Magnum Films as their film was running and drawing crowds, while Navketan Films' film had not yet been released. 3. The court held that Section 41(e) and Section 14(1)(a) of the Specific Relief Act did not bar the grant of an injunction in this case, as the injury to Magnum Films if the injunction were not granted would be irreparable.
Final Decision: The court dismissed Navketan Films' application for an injunction and allowed Magnum Films' application for an injunction, restraining Golcha Properties from committing breach of the agreement dated May 3, 1982 and discontinuing "Nikah" unless the collection per week falls short of Rs. 65,000.00 or Magnum Films agrees to discontinuance of the screening of that picture.
( 1 ) TWO Applications (I. A. 4240 and 4400 of 1982) in Suit Nos. 1510-A/82 and 1555-A/82 under Order 39, Rules 1 and 2, Civil Procedure Code read with Section 41 and Sch. II of the Arbitration Act and another application (I. A. 4397/82) under O. 1, R. 10, Civil P. C. are being decided together because they are inter-connected. This order is being written in the file of I. A. 4240/82 in Suit No. 1510-A/82.
( 2 ) APPLICANT of I. A. 4240/82 is M/s. Navketan International Films Pvt. Ltd. , Film Colony, Chandni Chowk, Delhi (hereinafter referred to as Navketan Films ). The applicant of the remaining two applications is M/s. Magnum Films, a partnership firm. Both the applicants are distributors of cinema films. Inter alia, Navketan Films is holding the distribution, exhibition and exploitation rights of a picture "swami Dada" while Magnum Films is holding distribution, exhibition and exploitation rights of the film nikah . The rights of each of them with respect to his film is in the territories of Uttar Pradesh and Delhi.
( 3 ) M/s. Golcha Properties Private Limited (hereinafter referred to as Golcha Properties) is a company registered under the Companies Act and owns a cinema known as golcha Cinema which is situated at Darya Ganj, New Delhi. Golcha Properties is respondent in every one of the applications.
( 4 ) THE picture nikah of Magnum Films is being exhibited on Golcha Cinema since October 15, 1982. According to Navketan Films it had entered into an agreement dated 21st July, 1982 with Golcha Properties to the effect that the film "swami Dada" would be exhibited at Golcha Cinema for a period of 12 weeks commencing from a date to be notified at least 11 days in advance by the former to the latter and that then the latter would be under an obligation to exhibit the film "swami Dada" from the said notified date irrespective of the running or future programmes of the latter.
( 5 ) GOLCHA Properties sent a letter dated 4th Sept. , 1982 to Navketan Films to the effect that as per the arrangements, the latter had to release their picture "swami Dada" in continuation of the programme of running the picture "baghawat" by the former and that, therefore, the latter should confirm within 72 hours if the latter was in a position to exhibit its picture "swami Dada" after the film "baghawat" had been exhibited and if no reply were received by the former within 72 hours, some other picture would be booked in continuation of the then running programme. Navketan Films replied that according to the agreement, the picture "swami Dada" had to be released on giving of 11 days notice by them and that it was Golcha Properties who had to adjust their present and future programmes accordingly and, that, therefore, the latter could not press for notifying the date of screening of the picture "swami Dada". On Nov. 5, 1982, Navketan Films wrote a letter to Golcha Properties to the effect that in view of the agreement dated 21st July, 1982, a notice was being given that picture "swami Dada" would be screened at Golcha Cinema on and from Dec. 3, 1982 simultaneously in other cinemas of Delhi and New Delhi. Golcha Properties sent reply dated Nov. 6, 1982 to the effect that they were already committed in respect of screening the picture "nikah" which was drawing full houses and that the picture "swami Dada" could not be released from Dec. 3, 1982. Golcha Properties also informed that the picture "swami Dada" could be screened on and from 26th Nov. , 1982 because the distributor of the picture nikah had the right to continue screening of that picture in case screening of picture swami Dada would not be commenced from Nov. 26, 1982.
( 6 ) ON account of the aforesaid reply, Navketan Films brought a petition under Section 20 of the Arbitration Act which was registered as Suit No. 1510-A of 1982. It prayed that the disputes between it and Golcha Properties be referred to arbitration of the arbitrators to be appointed by Motion Picture Associa
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