Breach of contract established as defendants failed to commence movie production, entitling plaintiff to recover funds advanced with interest.

JUDGMENT :

K. GOVINDARAJAN THILAKAVADI,J.

1. The Original Side Appeal is filed challenging the order dated 05.04.2022 passed by the learned Single Judge in C.S.No.153 of 2013.

2.The above suit was filed by the plaintiff seeking to pass a decree directing the Defendants 1, 3 & 4 to pay to Plaintiff a sum of Rs.9,53,50,000/-.

3.For the sake of convenience, the parties herein are referred to as arrayed in suit.

4.The sum and substance of the case of the Plaintiff is that, he entered into an Agreement dated 27.11.2008 with the 1^st defendant, which is a partnership firm in which the 3^rd and 4^th Defendants are partners. No relief is claimed as against the 2^nd defendant. Under the said Agreement, the Plaintiff engaged the services of the 1^st defendant to produce a Tamil movie, which was described as production No.6 as it was un-titled. The Agreement provided that the 1^st defendant should commence production of the movie on 10.12.2008 and complete the entire production of the first print before 05.04.2009. The Agreement further provided for the payment of a sum of Rs.13,50,00,000/- by the Plaintiff to the 1^st defendant towards funding the cost of production as per the schedule set out in clause 2 thereof. In Clause 3, it was recorded that the Plaintiff had paid an advance amount of Rs.2,50,00,000/- which was acknowledged by the 1^st defendant. In case, the 1^st defendant did not complete the movie by the 1^st week of April 2009, the Agreement provided for the payment of interest by the 1^st defendant at the rate of 12% per annum on the entire sum of Rs.13,50,00,000/- until the date of completion and handing over of the first copy of the movie to the Plaintiff. The Plaintiff was declared as the producer of the movie and the negative right holder. In terms of and pursuant to the Agreement, the Plaintiff paid the 1^st defendant a sum of Rs.4,25,00,000/- in the aggregate, including the sum of Rs.2,50,00,000/- which was acknowledged therein. The receipt of the said sum in several tranches was acknowledged by the 1^st defendant by counter signing, in acceptance letter dated 12.02.2010 from the Plaintiff to the defendant. According to the Plaintiff, the 1^st defendant failed to commence the production of the movie. The further contention of the Plaintiff is that, the receipt of the sum of Rs.4,25,00,000/- was acknowledged by the Defendants. Inspite of receiving the said amount, the Defendants failed to proceed with the production of the movie. Therefore, the Defendants have committed breach of the Agreement. The Plaintiff before filing the present suit, preferred a suit in O.S.No.451 of 2013 before the 8^th Assistant City Civil Court at Chennai seeking to prevent the Defendants 1, 3 & 4 from undertaking, commencing or releasing movies of third parties before completing the movies of the Plaintiff. Thereafter, the said suit was withdrawn by the Plaintiff with a leave to sue for damages by filing a separate suit. The Plaintiff has filed the present suit for recovery of a sum of Rs.9,53,50,000/- with interest at 24% per annum on the sum of Rs.4,25,00,000/-. It is further contended that the Plaintiff is entitled to default interest on the total sum of Rs.13,50,00,000/- for the period from 10.12.2003 to 05.04.2009. Hence, the Plaintiff claims a sum of Rs.9,53,50,000/-.

5.The claim of the Plaintiff was resisted by the Defendants stating that the Agreement provided that the Plaintiff should pay a sum of Rs.13,50,00,000/- as per the schedule set out in Clause 2 thereof. After paying the 1^st installment of Rs.2,50,00,000/-