IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
M/s. Studio Green Films Private Limited, Rep. by its Director, KE. Gnanavelraja Having its Office at Chennai - Appellant
Versus
M/s. Krikes Cine Creations, Rep. by its Proprietor Sridharan Having registered office at Kalaimagal Nagar, Ekkattuthangal, Chennai - Respondent O.A. No. 754 of 2021
Decided On : 09-12-2021
Arbitration and Conciliation Act, 1996 - Section 9 - Indian Contract Act, 1872 - Applicant seeks to prevent Respondent from directly or indirectly releasing movie ''JAIL'' either through direct theatrical release or through OTT platforms or through satellite TV pending arbitral proceedings - Whether its claims can be compensated monetarily - Whether Applicant is entitled to interim relief and, if so, nature of such relief - Whether Agreement is an agreement for assignment of intellectual property rights or a licence or a contract of agency should await arbitral proceedings – Held, escrow agreement may enable Respondent to receive up to Rs.7,00,00,000/- from revenues remitted into such account so as to recoup its investment - No disbursements beyond said sum of Rs.7,00,00,000/- should be made by escrow agent without express consent of arbitral tribunal or Court, if arbitral tribunal is not in place - Until above conditions precedent are satisfied, movie cannot be released in theatres - As regards release of movie on OTT platforms and through satellite TV, the Respondent does not appear to have made concrete progress - In such factual context, keeping in mind nature of Agreement, Respondent is restrained from taking any steps in such regard without obtaining orders from arbitral tribunal or Court if arbitral tribunal is not in place – Petition disposed of.
JUDGMENT :
(Prayer: This Application is filed under Section 9 of the Arbitration and Conciliation Act, 1996 praying to grant an order of interim injunction restraining the Respondent by themselves or by their Partners or successors of business, servants, agents, representatives, assignees and all other persons from releasing the film ''JAIL'' through direct theatrical release or in any OTT platforms or through any satellite TV, pending disposal of the Arbitration.)
1. In this Application under Section 9 of the Arbitration and Conciliation Act, 1996(the Arbitration Act), the Applicant seeks to prevent the Respondent from directly or indirectly releasing the movie ''JAIL'' either through direct theatrical release or through OTT platforms or through satellite TV pending arbitral proceedings.
2. The Applicant states that an agreement styled as ''JAIL'' - Film Assignment Deed dated 24.10.2021(the Agreement) was entered into between the Applicant and the Respondent. According to the Applicant, the Respondent assigned all the Assigned Rights, as defined in the Agreement, to the Applicant. The Applicant asserts that the Assigned Rights include the copyright in the movie and all other intellectual property rights. Indeed, the Applicant asserts that such rights include the right of theatrical exhibition, satellite broadcasting rights, direct to home rights, cable television rights, and the like. The Applicant also asserts that Clause 2.2 of the Agreement confers on the Applicant the sole, exclusive and absolute right to market, assign or distribute the Assigned Rights over the movie throughout the world perpetually.
3. Pursuant to the Agreement, the Applicant states that it approached distributors and other players in the industry in order to market, distribute and broadcast the movie. An announcement was made through its official Twitter account named “Studio Green” with regard to the proposed release of the movie.
4. In the circumstances, the Applicant submits that it was shocked to come across a communication on the Respondent's official Twitter account that the movie “JAIL” was scheduled for release on 09.12.2021. Therefore, the Applicant sent an email of 22.11.2021 to the Respondent and called attention to the assignment of all Assigned Rights under the Agreement. Upon gathering that the Respondent is in the process of releasing the movie in contravention of the Agreement, the present application is filed.
5. Oral arguments were advanced on behalf of the Applicant by Mr.Satish Parasaran, senior counsel, assisted by Mr.Vijayan Subramanian, learned counsel; and on behalf of the Respondent by Mr.PL.Narayanan, learned counsel.
6. Learned senior counsel for the Applicant referred extensively to the Agreement. In particular, he referred to recitals V and VI, Clauses 2.1 to 2.3, 2.5, 4.1, 4.6, 5.8, 5.10.11 and 8.5 of the Agreement. On such basis, he submitted that the Applicant is the sole and exclusive holder of all the Assigned Rights, including copyright, over the movie. He also submitted that the Respondent is prohibited from licensing, assigning or granting any right, title or interest in the Assigned Rights to any third party. With specific reference to clause 8.5 of the Agreement, he submitted that the Respondent is not permitted to terminate the Agreement unless the Applicant fails to market and distribute the movie within 150 days from the date of execution of the Agreement. Since the Agreement was executed on 24.10.2021, it was submitted that the 150 day period expires only in end-February 2022 and, therefore, the purported termination by letter dated 23.11.2021 is invalid.
7. In substantiation of the fulfillment of obligations by the Applicant under the Agreement, the Applicant referred to email communications and tweets. In particular, an email of 29.10.2021 to Sony Liv and an email of 29.10.2021 to Mango Mass Media Private Limited were relied on. A tweet reflecting that the teaser for the movie was marching towards 2 million views wa
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.