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2009 Supreme(Del) 107

IN THE HIGH COURT OF DELHI
MANMOHAN SINGH
Reliance Big Entertainment Pvt.Ltd. - Appellant
Versus
Percept Limited - Respondent
IA No.14113/2008 in CS (OS) No.2408/2008
Decided On : 23-01-2009

Advocates Appeared:
Dr. A.M. Singhvi, Sr. Adv. with Mr. Ameet Dutta and Mr. Thomas George, Advocates
Mr. Rajiv Nayar, Sr. Adv. with Mr. Sandeep Mittal, Advocate for Defendant No.1 Mr. Kamal Sawhney, Advocate for Defendant No.2

Headnote:Civil Procedure Code, 1908 Order 39 Rules 1 & 2 - Interim injunction - defendants restrained from assigning, liccn!;it1t or releasing of film titled Aashaycin and from issuing any order/letter allowing and authorizing release of print of the film titled Aashayein in favour of any third party - Once the contract is vitiated by fraud or misrepresentation, it is a settled law that the party may either rescind the contract or recover damages or both - Damages would be more appropriate remedy than passing injunction because it would not only put the parties to the proceedings at loss but also cause hardship and losses to the other persons whose monies are invested in the film - Defendants to deposit 30% of total amount paid by the plaintiff in equal proportion - Subject to this condition, the defendants at liberty to release the film.

       

MANMOHAN SINGH, J.

.1. By this order, I shall dispose of the plaintiffs application under Order 39 Rules 1 and 2 read with Section 151 CPC being I.A. No. 14113/2008 praying that the defendants by themselves, their officers, servants and agents be restrained from dealing with either themselves or through any third party from assigning, licensing or releasing of film titled

.Aashayein and from issuing any order/letter allowing and authorizing release of print of the film titled Aashayein in favour of any third party.

2. The plaintiff has filed a suit for recovery, grant of permanent injunction and decree for sale against the two defendants Percept Ltd, Defendant No.1 and Super Cassettes Industries Ltd, Defendant No.2 who are co-producers of the film in question.

3. The plaintiff claims to be established in the year 2006 as a part of Reliance Anil Dhirubhai Ambani Group, which is Indias top 3 business houses on all major financial parameters and has net assets in excess of Rs.1,34,000 crores and net worth to the tune of Rs.58,000 crores. The plaintiff claimed to have an extensive production partners with its creative talents in India, namely Farhan Akhtar, Vidhu Vinod Chopra, Rituparno Ghosh, Priyadarshan, Maniratnam, J.P. Dutta, Madhur Bhandarkar, Shyam Benegal, Sudhir Mishra, Indra Kumar, AB Corp. etc.

4. The controversy in the present case started with the plaintiffs association with the defendants who are co-producers of the film Aasheyein in relation to the project entered between the parties involving acquisition of films, distribution rights etc around May, 2008. It was agreed that the plaintiff will distribute rights of film Aashayein to be directed by Nagesh Kukunoor starring John Abraham and others for world-wide territories and for use of media platforms and formats.

5. The plaintiff alleges that in May, 2008 he was shown a one minute teasor (short promotional clip) of the proposed film which suggested the film to be a commercial film. The Plaintiff thereafter, asked the Defendants to provide a written synopsis on the subject matter and treatment note of the film.

.6. By way of e-mail dated 21st May, 2008 Defendant No.2 forwarded a written synopsis on behalf of both the defendants detailing the films subject matter. The synopsis is detailed below: Aashayein is a story of a compulsive gambler who discovers new meanings of fortune and life through a dramatic turn of events. Aashayein is a tale of Rahuls journey from darkness to light. A journey about love, hate, life, death and above all hope. The brilliant storytelling and simplistic direction style of Nagesh Kukunoor. The film is about the triumph of human spirit. John Abraham in his strongest performance yet, Aashayein is a shining example of commercial cinema that does not compromise on quality. An outstanding soundtrack by Salim-Sulaiman.

7. It is pleaded in the plaint that a perusal of synopsis shows that the film was proposed to be a commercial film venture. It is further contended that there was representation by the defendant to the plaintiff that the price cost of the film shall be Rs. 18 crores and it was assured that the defendants will not deviate from the story line.

8. The plaintiff further alleges that on the basis of the representation made by the defendants, the plaintiff on 11th June, 2008 entered into a Distribution agreement (Term Sheet) with the defendants for distribution of certain rights in the film such as theatrical and non-theatrical rights, world satellite rights, television rights, overseas home video rights etc. As per clause 32 of this agreement, the parties agree to enter into the Long Form Agreement for the said film within 30 days of this agreement and it shall be valid and binding on both the parties until Long Form Agreement is signed. It is further submitted by the plaintiff that on 13th June, 2008 the plaintiff made payment equivalent to 30% of the total amount totaling to Rs.4,01,40,894/- including applicable value added tax and









































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