The court ruled that contractual exclusivity claims are contingent upon the specific terms and duration of the agreement, emphasizing the necessity of demonstrating a prima facie case for interim relief.

ORDER :

P.DHANABAL, J.

This Original Application has been filed by the applicant to grant interim injunction restraining the Respondent Company, its Director-cum-Artist Mr. Yuvan Shankar Raja, and all its officers, agents, representatives, assigns or any persons claiming through or acting under them, from performing, announcing, promoting, organising or associating with any live musical performance of Mr. Yuvan Shankar Raja, within the exclusive territories of Malaysia and the United States of America, including the performances scheduled on 07.02.2026 and 14.02.2026, pending adjudication of the disputes arising out of the Artist Performance Agreement dated 08.02.2023 read with the Addendum dated 08.02.2023.

2. The short facts of the application filed by the applicant are as follows:

The applicant company is engaged in the business of planning, organising, promoting, managing and conducting large scale national and international live musical performances and entertainment events. The respondent is a company representing the artist Mr. Yuvan Shankar Raja and was contractually engaged by the applicant for exclusive live musical performances in specified international territories. On 08.02.2023, the applicant company and the respondent entered into an Artist Performance Agreement followed by an Addendum dated 08.02.2023, whereby the respondent contractually granted the applicant sole and exclusive rights to organise, promote, produce and conduct all live musical performances of the said artist in the exclusive territories of Malaysia and the Unites States of America. As per the agreement, the respondent and the artists were strictly prohibited, during the subsistence of the agreement, from directly or indirectly performing, negotiating, contracting, associating or engaging with any third party for live musical performances within the said exclusive territories, without the prior written consent of the applicant company. In furtherance of the said preparations, the applicant company entered into arrangements with local facilitators and service providers in Malaysia solely for the purpose of statutory compliance, licensing of foreign artists, venue coordination, technical production and allied operational requirements, without in any manner diluting or assigning the applicant’s exclusive contractual rights. The total financial exposure incurred by the applicant company in connection with the Malaysia and USA concert series aggregates to approximately Rs.3,80,00,000/-. The receipt of substantial amounts paid by the applicant company towards the Malaysia and USA concert series was also admitted by the respondent and he acknowledged the money for a sum of Rs.57,50,000/- transferred towards Malaysia performance advance, a sum of Rs.20 lakhs received by cheque in favour of U1 Records Private Limited, a sum of Rs.29 lakhs received in a referred account and a sum of Rs.73,00,000/- received in referred accounts, in total a sum of Rs.1,79,50,000/- exclusive of other amounts paid by the applicant company forming part of the overall consideration of approximately Rs.3.80 crores.

2.1. Pursuant to the execution of the agreement and Addendum, the applicant company undertook extensive preparations for the live musical concert scheduled to be held on 15.07.2023 in Malaysia, as part of the proposed exclusive international concert series, and incurred substantial expenses. Thereafter during the course of the subsequent discussions and negotiations, the respondent acknowledged incons