A.S.VENKATACHALAMOORTHY, J.

Plaintiffs in O.S.No.9574 of 1976 on the file of XVII Assistant Judge, City Civil Court, Madras are the appellants herein.

2. The plaintiffs filed the suit contending that the first defendant firm is the producer of Malayalam talkie picture called "Puthra Kameshti" and in respect of the distribution, exhibition and exploitation of the picture in the state of Kerala, the first defendant represented by its partners, entered into an agreement dated 1.9.1972 with the first plaintiff, who was the promoter of second plaintiff company, whereby the first defendant firm was advanced a sum of Rs.1,50,000/- by way of loan, in consideration of which the first plaintiff was entitled to the sole, absolute and exclusive rights of distribution, exhibition and exploitation of the picture for the said area for a period of seven years from the date of first release of the picture in the said area. According to the plaintiffs, the first plaintiff was also authorised to spend a sum of Rs.60,000/- towards publicity expenses and the amount so spent by the first plaintiff together with the distribution commission was to be adjusted from out of the net realisations of