A.S.No.523 of 2016

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 14.03.2023

CORAM

THE HONOURABLE MRS.JUSTICE K.GOVINDARAJAN THILAKAVADI

A.S.No.523 of 2016

1.M/s.Sheila Cine Arts,

Rep by their Partner Sheila Sivagnanam,

2.Sheila Siva,

3.S.Sivaraman

.. Appellants/Defendants

Vs

K.Nandagopal Chetty (Died)

2.K.Raju

.. Respondent/Defendant

(R2 brought on record as LR's of the deceased sole respondent viz., (K.Nandagopal

Chetty) vide Court order dated 08.09.2022 in AS.523 of 2016 (DBCJ))

Prayer:- First Appeal has been filed under Section Order 41 Rule 1 of Civil

Procedure Code) against the judgment and decree dated 30.11.2015, made in

O.S.No. 11300 of 2010, on the file of the V Additional Judge, City Civil Court,

Chennai.

For Appellants

: M/s.P.Munusamy

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A.S.No.523 of 2016

Judgment

Aggrieved over the judgment and decree dated 30.11.2015 passed in O.S.No.

11300 of 2010, on the file of the V Additional Judge, City Civil Court, Chennai,

the appellants have preferred the first appeal.

2.This suit has been filed by the Plaintiff/respondent to direct the

defendants/appellants to pay to the plaintiff/respondent a sum of Rs. 17,90,000/-

together with interest at 36% per annum prevailing in the cine trade and as per the

agreement on Rs.5,00,000/- from this date till the date of realization and to pay the

costs of the suit.

Brief averments of the plaint:

3.On 21.09.1996 the plaintiff/respondent had advanced Rs.5,00,000/- to the

defendants/appellants under a finance agreement dated 21.09.1996. The loan

amount was given for production expenses of a Tamil Movie namely “Manasu” to

the defendants/appellants. As per the terms and conditions of the said agreement

the defendants/appellants have created first charge in respect of the territorial rights

of Trichy, Tanjore, Pudukottai Nagar, Nagai-Quaid-e-Millath Districts, Tirunelveli,

Salem, Dharmapuri, North Arcot and Tiruvannamalai District. The defendants have

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A.S.No.523 of 2016

agreed to repay the said sum with interest at the rate of 36% per annum. It was also

agreed that the charged areas shall not be disposed of to anyone without the prior

written sanction or written consent of the plaintiff/respondent. It was also agreed

that the picture will not be released anywhere in charged areas without settling the

dues to the plaintiff/respondent. The charge over the said territories in respect of

distribution, exhibition and exploitation rights of the said picture was also

confirmed by Gemini Colour Laboratory, Chennai where negatives of the picture

was processed until the producers produce a clearance letter from the

plaintiff/respondent. The picture could not be released for a quite long time and

finally as per the orders passed by the Hon'ble High Court in O.S.A.Nos. 47 of

2000 and 48 of 2000 in C.S.No 986 of 1998 an Advocate Commissioner was

appointed to release the picture. The Advocate Commissioner had released the

picture and deposited Rs.10,00,000/- (Rupees Ten Lakhs only) in Saligramam

Branch, of Indian Bank by the Court. Subsequently, the plaintiff/respondent

himself impleaded as one of the defendant in C.S.No.986 of 1998. The picture was

released on 15.12.2000 by the Advocate Commissioner and the charges became

futile, however the charges in the deposit made in the bank by the Advocate

Commissioner still exists. The security created in favour of the plaintiff/respondent

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A.S.No.523 of 2016

by the defendant is in force and the picture was released only on 15.12.2000 and

the suit is filed in time. Thus, along with the interest calculated the

defendants/appellants are liable to pay Rs.17,90,000/- to the plaintiff. The

plaintiff/respondent has issued a legal notice on 19.06.2002 to the

defendants/appellants. Thoug