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2021 Supreme(Del) 803

IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
John Hart and Ors. - Appellants
Vs.
Mukul Deora and Ors. - Respondent
CS (COMM) 38/2021, IA 1167 and 1168/2021
Decided On : 21-01-2021

Advocates Appeared:
For the Appellant : Kapil Sankhla, Mohini Priya, Ashutosh Thakur, Meghna Sankhla and Abhishek Pandey, Advs.
For the Respondents: Sandeep Sethi, Sanjay Gupta, Ajay Monga, Ateev Mathur, Jagriti Ahuja, Varsha Kriplani, Saikrishna Rajagopal, Sidharth Chopra, Thomas George, Savni Endlaw, Yatinder Garg, Tanvi Sinha and Mudit Tayal, Advs.

Delay in approaching the court, awareness of the film release, and financial repercussions were crucial in the court's decision to reject the injunction.

Headnote:

Injunction - Copyright Infringement - Literary Option/Purchase Agreement - [The White Tiger] - [Injunction, Copyright Infringement] - [Commercial Courts Act, Section 151 of CPC, Order XI Rule 1(4), Order XXXIX Rules 1 & 2 CPC] - The court discussed the delay in approaching the court, the plaintiff's awareness of the film release since 2019, and the financial repercussions of granting an injunction. The court found no justification for the delay and rejected the injunction, directing the defendants to keep detailed accounts of the film's earnings for potential compensation to the plaintiffs.

Fact of the Case:

The plaintiffs sought an injunction to restrain the release of the film 'The White Tiger' on the Netflix platform, claiming exclusive copyright to produce a movie adaptation of the book. The defendants disputed the plaintiffs' rights and highlighted the delay in approaching the court, formal objections to the unsigned plaint, and the financial repercussions of an injunction.

Finding of the Court:

The court found no justification for the delay in approaching the court less than 24 hours before the film's scheduled release. It rejected the injunction, citing the plaintiffs' awareness of the film release since 2019 and the financial repercussions of granting an injunction.

Issues: Delay in approaching the court, awareness of the film release, formal objections to the unsigned plaint, financial repercussions of granting an injunction.

Ratio Decidendi: The delay in approaching the court, the plaintiffs' awareness of the film release since 2019, and the financial repercussions of granting an injunction were crucial in the court's decision to reject the injunction.

Final Decision: The court rejected the injunction, directing the defendants to keep detailed accounts of the film's earnings for potential compensation to the plaintiffs.

JUDGMENT :

C. Hari Shankar, J.

(Heard virtually via Video-Conferencing)

CS(COMM) 38/2021 and IA 1168/2021 (Under Order XI Rule 1(4) of the Commercial Courts Act, r/w Section 151 of CPC) in CS(COMM) 38/2021

1. Issue summons in the suit and notice in the application.

2. Summons in the suit and notice in the application are accepted, on behalf of Defendant Nos. 1, 4, 5, 6 & 7, by Mr. Sanjay Gupta, learned counsel, and on behalf of Defendant Nos. 2, 3, 8 & 9, by Mr. Sidharth Chopra, learned counsel.

3. Written statement to the plaint and reply to the interlocutory application, if any, be filed by the defendants within a period of four weeks from today accompanied by affidavit of admission/denial of plaintiffs' documents, with advance copy to learned counsel for the plaintiffs. Replication/rejoinder thereto, if any, be filed within two weeks thereof accompanied by affidavit of admission/denial of defendants' documents.

4. List before the Joint Registrar (Judicial) for admission/denial of documents and marking of exhibits on 23rd March, 2021.

5. The Joint Registrar (Judicial) shall list the matter before the Court at the appropriate stage.

IA 1167/2021 (under Order XXXIX Rules 1 & 2 CPC) in CS(COMM) 38/2021

6. The plaintiffs, by this plaint, seek to injunct the release of "The White Tiger", a film produced by Defendant No. 1, slated for release at midnight today, on the Netflix internet platform.

7. An ad interim injunction, restraining the release of the film during the pendency of the present suit, is also sought.

8. Mr. Kapil Sankhla, learned Senior Counsel appearing for the plaintiffs, submits that Plaintiff No. 1 was, by virtue of a Literary Option/Purchase Agreement dated 4th March, 2009, vested with exclusive copyright to make a movie adaptation of the book "The White Tiger" authored by Mr. Aravind Adiga. He submits that the right, which devolved on Plaintiff No. 1 by virtue of the aforesaid Literary Option/Purchase Agreement dated 4th March, 2009, continues till date and is unchallenged. According to him, Plaintiff No. 1, who is the producer of several reputed films, wanted "The White Tiger" to be an Oscar-worthy production, to be released in Hollywood. Mr. Sankhla has drawn my attention to the various creditable achievements of Plaintiff No. 1 in the past and submits that, were the plaintiffs' right emanating from the aforesaid Literary Option/Purchase Agreement dated 4th March, 2009 not infringed by the defendants, the film would have been produced in Hollywood, on a much larger scale, and would have gone on to win laurels. He submits that Plaintiff No. 1 had allowed Plaintiff No. 2 to engage herself in producing the film based on the aforesaid book, but that no such right had ever devolved on Defendant No. 1.

9. Mr. Sankhla further asserts that it was only in October, 2019 that the plaintiffs came to know that Netflix was in the process of making and releasing the subject film on its online platform. This, he points out, resulted in a legal notice, dated 4th October, 2019, being sent by Plaintiff No. 2 to Defendant No. 1 as well as to Netflix, calling on them to cease and desist from any such act. Mr. Sankhla further submits that his clients were never given the impression that any shooting of the film was taking place even during 2020, when, internationally, such activities were placed on hold, following the COVID pandemic.

10. That apart, submits Mr. Sankhla, in the United States, a copyright holder has no reason to apprehend infringement of her/his copyright, and that any studio, which was endeavouring to make a film based on a novel, exclusive rights in which respect vested in another, would contact the rightful copyright holder, authorized to make such a film, in the interests of due diligence. Plaintiff No. 1, submits Mr. Sankhla, had no reason to believe that his copyright would be violated and that a film, based on "The White Tiger", would be made without following due diligence. No prospective film maker or producer having eve

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