IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SENTHILKUMAR, J.
Reliance Industries Limited – Applicant
Versus
Studio Green Films Private Limited, represented by its authorised Signatory, Gnanavelraja K.E. – Respondent
A. Nos.5823 to 5826 of 2025 in C.S.(CD) No.297 of 2025
Decided On : 09-01-2026
| Table of Content |
|---|
| 1. filing applications for financial settlements (Para 1 , 4 , 5) |
| 2. details of production agreements shared (Para 6 , 7 , 8) |
| 3. claims of breach of contract identified (Para 12 , 13 , 14) |
| 4. responses to claims discussed (Para 21 , 22 , 23) |
| 5. court finds case unconvincing (Para 30 , 35) |
| 6. dismissal of applications affirmed (Para 36) |
ORDER :
N. SENTHILKUMAR, J.
The present suit has been filed by the Plaintiff seeking recovery of a sum of Rs.22,00,00,000/- along with applicable GST amounting to Rs.3,98,00,000/- together aggregating to Rs.25,98,00,000/- along with interest at the rate of 14% from the date of disbursement till the date of realisation.
2.The application in A.No.5823 of 2025 has been filed to direct the respondents 3 to 6 and any of their agents/affiliates, not to release, pay, disburse or adjust any monies whatsoever to Respondents 1 and 2 under or in connection with the agreements relating to the film “Vaa Vaathiyaar”, including but not limited to advances, settlement amounts, revenue shares or any other consideration and further direct that all such amounts presently due and hereafter accruing be remitted directly to the credit of this suit pending disposal of the suit.
3.The application in A.No.5824 of 2025 has been filed to direct the respondents 3 to 6 to disclose on affidavit within 7 (seven) days:
(i)copies/summaries of all agreements with Respondents 1 and 2 concerning “Vaa Vaathiyaar”,
(ii)amounts already paid and amounts presently due or to become due, head-wise (theatrical/overseas, digital/OTT, satellite, music and ancillary), with payment schedules and bank coordinate and
(iii)any set-off/recoupment claims asserted by Respondents 1 and 2.
4.The application in A.No.5825 of 2025 has been filed to direct the respondents, their men, agents, distributors, assignees or any person claiming through them to pay and deposit to the credit of the suit forthwith and in any event within 48 hours of each receipt, without set-off or deduction, all gross proceeds, advances, settlements and other monies, whether now due or hereafter accruing, from the exploitation of the rights (including theatrical, non- theatrical, satellite, digital/OTT, music, remake, adaptation, underlying IP and ancillary rights) in the films “X Meets Y (Telugu)” and Untitled (Telugu remake of Indru Netru Naalai), or any part thereof pending disposal of the suit.
5.The application in A.No.5825 of 2025 has been filed to to direct the respondents 1 and 2, their men, agents, distributors, assignees or any person claiming through them to pay and deposit to the credit of the suit forthwith and in any event within 48 hours of each receipt, without set-off or deduction, all gross proceeds, advances, settlements and other monies, whether now due or hereafter accruing, from the exploitation of the rights (including theatrical, non- theatrical, satellite, digital/OTT, music, remake, adaptation, underlying IP and ancillary rights) in the films “Vaa Vaathiyaar” or any part thereof pending disposal of the suit.
6.Mr.R.Parthasarathy, learned Senior Counsel appearing for the applicant submitted that the plaintiff/applicant is running a media and entertainment division, who is one of the largest business conglomerate and engaged in the business of production, acquisition, exploitation and distribution of cinematograph films. The learned Senior Counsel also submitted that the first respondent is also engaged in the business of production of cinema and the second respondent is the Managing Director of the first respondent.
7.The learned Senior Counsel further submitted that the second respondent, who is having experience and market standing in the film industry, had approached the applicant for production, marketing and distribution of five full length feature films starring G.V.Prakash Kumar, Samyuktha, Allu Sirish, Vikram, Pasupathi, Arya, Sathyaraj, Vennela Kishore and others, which will be directed by reputed directors, such as Lokesh Mithun Krishnan, Pa.Ranj
Interim relief denied due to lack of prima facie case regarding applicant's rights over a film's revenues and established contractual breaches.
Breach of contract established as defendants failed to commence movie production, entitling plaintiff to recover funds advanced with interest.
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.
The main legal point established is the interpretation of the nature of the agreement and the determination of the limitation period for filing the suit.
Suppression of material facts in legal proceedings renders orders obtained non est in law, emphasizing the need for transparency in judicial processes.
The court ruled that the first defendant was not obligated to invest the full amount under the Film Investment Agreement, and both parties failed to meet their burden of proof.
Writ jurisdiction is not appropriate for resolving contractual disputes, especially when an arbitration clause exists in the agreement.
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.