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IN THE HIGH COURT OF JUDICATURE AT MADRAS
SENTHILKUMAR RAMAMOORTHY, J.
Lyca Productions Private Limited, Rep. By its Authorized Signatory Neelkant Narayanpur, Chennai - Appellant
Versus
Vishal Krishna Reddy, The Sole Proprietor of M/s. Vishal Film Factory, Chennai - Respondent
O.A. No. 35 of 2022 & A.No. 350 of 2022 & A.No. 4693 of 2021 in C.S.(Comm. Suit) No. 59 of 2021
Decided On : 08-03-2022
Interim Injunction - Movie Release - CPC, 1908 - [INTERIM INJUNCTION] - [RECOVERY OF LOAN] - [Order XIV Rule 8, Order XXXIX of CPC, 1908] - The court discussed the application for interim injunction to restrain the respondent from releasing the movie 'Veeramae Vaagai Soodum' and the direction for depositing sums received or receivable by the respondent in relation to the movie to the credit of the suit. The court analyzed the loan agreement, security provided, and the respondent's non-compliance with earlier orders. The legal provisions of Order XIV Rule 8 and Order XXXIX of CPC, 1908 were considered in reaching the decision to direct the respondent to establish an interest-bearing fixed deposit account in the name of the Registrar General, Madras High Court, for a sum of Rs.15 crore to the credit of the suit.
Fact of the Case:
The suit was filed for recovery of a sum of Rs.21.29 crore along with interest based on a loan agreement. The applicant sought interim injunction and direction for depositing sums received or receivable by the respondent in relation to the movie 'Veeramae Vaagai Soodum' to the credit of the suit. The respondent's non-compliance with earlier orders and the dispute over the loan availed of by the respondent from Gopuram Films were key aspects of the case.
Finding of the Court:
The court found that the applicant had established a strong prima facie case for securing the suit claim and directed the respondent to establish an interest-bearing fixed deposit account in the name of the Registrar General, Madras High Court, for a sum of Rs.15 crore to the credit of the suit. The court also permitted the applicant to produce additional documents subject to objections by the respondent.
Issues: The issues revolved around the loan agreement, security, non-compliance with earlier orders, and the dispute over the loan availed of by the respondent from Gopuram Films.
Ratio Decidendi: The court's decision was based on the prima facie establishment of the applicant's case, the respondent's non-compliance with earlier orders, and the need to secure the suit claim. The legal provisions of Order XIV Rule 8 and Order XXXIX of CPC, 1908 were crucial in reaching the decision.
Final Decision: The respondent was directed to establish an interest-bearing fixed deposit account in the name of the Registrar General, Madras High Court, for a sum of Rs.15 crore to the credit of the suit. The applicant was permitted to produce additional documents subject to objections by the respondent. The suit was listed for further proceedings on 22.03.2022.
JUDGMENT
(Prayer in O.A.No.35 of 2022: This Original Application is filed under Order XIV Rule 8 of Original Side Rules r/w.Order XXXIX of CPC, 1908 praying to grant an order of interim injunction restraining the Respondent, their men, agents, employees, representatives or any persons acting through or under the Respondent from in any manner releasing or exhibiting the movie “Veeramae Vaagai Soodum”, including its dubbed versions in Telugu [Saamanyudu], Kannada [Obba], Hindi, Malayalam and other languages, if any, produced by Respondent in theatres within India or Worldwide or satellite channels or digital medium including Over-the-Top (OTT) media streaming platforms or any other media streaming platforms or any other medium pending disposal of the above suit.
Prayer in A.No.350 of 2022: This application is filed under Section XIV Rule 8 of the High Court O.S.Rules read with Sections 151 of the Code of Civil Procedure, 1908 praying to direct that all amounts received or receivable by the Respondent in relation to the film titled “Veeramae Vaagai Soodum”, including its dubbed versions in Telugu [Saamanyudu], Kannada [Obba], Hindi, Malayalam and other languages, if any, including but not limited to sums received or receivable from agreements for distribution rights, satellite rights, digital rights, dubbing rights, remake rights, music rights, theatrical collections to be deposited into Court to the account of the above suit pending disposal of the said Suit.
Prayer in A.No.4693 of 2021: This application is filed under Section XIV Rule 8 of the High Court O.S.Rules read with Order VII Rule 14 read with Order XI Rule 1 of the Code of Civil Procedure 1908, praying to permit the applicant to bring on record the additional documents mentioned in the list of documents in the Schedule attached herewith and forming part hereof.)
Common Order
1. O.A. No.35 of 2022 is filed seeking an interim injunction to restrain the respondent from releasing or exhibiting the movie 'Veeramae Vaagai Soodum'. The admitted position is that ad-interim relief was not granted when the application was moved, and the movie was released in cinema theatres in early February 2021. Therefore, as regards the theatrical release, nothing survives of the application. A.No.350 of 2022 is filed for a direction that all sums received or receivable by the respondent in relation to the movie 'Veeramae Vaagai Soodum' should be deposited to the credit of the suit. A.No.4693 of 2021 is filed to bring on record additional documents.
2. The suit is filed for recovery of a sum of Rs.21.29 crore along with interest thereon. The principal basis on which the suit is founded is a loan agreement dated 21.09.2019 between the applicant and the respondent. The said loan agreement records that the loan had been availed of by the respondent from Gopuram Films/Anbu Chezhian, who is referred to as the original lender under the agreement. As per the agreement, the applicant had taken over the loan availed of by the respondent from Gopuram Films. Consequently, the agreement records that the respondent agrees to repay a sum of Rs.21.29 crore in the manner specified at clause 5 thereof. By way of security, the agreement provides for a first lien to the applicant on all rights, titles and interest in all future film projects of the respondent until the loan is fully discharged.
3. The applicant had filed several interim applications previously. The first set of applications pertained to a movie called 'Chakra'. By order dated 18.02.2021, the respondent was permitted to release the movie in theatres subject to provision of accounts for the period extending from 19.02.2021 to 05.03.2021. Orders were passed subsequently with regard to the obligation of the respondent to obtain the approval of this Court before releasing the movie on OTT platforms and on television. Eventually, by order dated 18.08.2021, the said applications were disposed of. By such order, the respondent was directed to submit monthly s
The main legal point established in the judgment is the court's authority to grant interim injunction and direct the securing of the suit claim under the legal provisions of Order XIV Rule 8 and Orde....
The main legal point established in the judgment is the court's authority to modify orders to include default clauses for non-compliance in loan recovery cases.
The court reinforced that repeated failures by a judgment debtor to comply with financial orders warrant strict enforcement of decrees, including prohibitions on releasing related assets.
Court approved a settlement agreement between parties involved in a film distribution dispute, ensuring the transfer of rights and detailing obligations to be settled financially.
The court confirmed that copyright protection extends to expression forms, not ideas, and prima facie establishment of similarity warrants injunction relief.
Delay in approaching the court, awareness of the film release, and financial repercussions were crucial in the court's decision to reject the injunction.
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