MADRAS HIGH COURT
D.Sivakarthikeyan – Appellant
Versus
K.E.Gnanavelraja and 2 others – Respondent
OA 86/2022
O.A.No.86 of 2022
and Arb Appln.No.68 of 2022
O.A.No.86 of 2022
and
Arb Appln.No.68 of 2022
M.SUNDAR, J
This order will govern the captioned two applications.
2. Captioned two applications were filed in this Court on 16.02.2022.
Aforementioned two applications were first listed before this Court on
18.02.2022 and the proceedings made by this Court in that first listing reads as
follows:
'In the captioned applications, 'O.A.No.86 of 2022'
[hereinafter 'said OA' or 'injunction application' for the sake of
convenience and clarity] has been presented with a prayer for
interim injunction qua claiming or transferring any rights to
distributors, over-the-top platforms or making any further
investment in production of films titled 'Rebel', 'Chiyan 61' and
'Pathu Thala' and 'Arb.Appln.No.68 of 2022' [hereinafter 'said
Arb.Appln' or 'security application' for the sake of convenience and
clarity] is with a prayer for a direction to furnish security.
2. Mr.Sricharan Rangarajan, learned counsel appearing on
behalf of Ms.Anu Ganesan, counsel on record for applicant in both
the captioned applications submits as follows:
(i) Applicant is a cine artist;
(ii) Applicant entered into an 'agreement dated 06.07.2018'
[hereinafter 'said agreement' for the sake of convenience and
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https://www.mhc.tn.gov.in/judis
O.A.No.86 of 2022
and Arb Appln.No.68 of 2022
clarity] with first respondent regarding a Tamil Cinematographic
Film titled 'Mr.Local' [hereinafter 'said movie' for the sake of
convenience and clarity];
(iii) The total remuneration payable to the applicant under
said agreement (for playing lead role in said movie) is Rs.15 Crores
(as captured in Clause 3 of said agreement captioned
'CONSIDERATION') to be paid at various stages/tranches qua
making of said move, last of the payments is Rs.1 Crore and the
same ought to have been paid before theatrical release of said
movie;
(iv) Theatrical release of said movie did happen on
17.05.2019 but only 11 out of aforementioned 15 crores was paid
and Rs.4 crores remained/remains unpaid;
(v) Thereafter the applicant has been repeatedly following up
for payment of aforementioned balance consideration with the first
respondent. Averments regarding such repeated follow up is
captured in paragraph No.10 of the support affidavit. The payment
was not forthcoming from first respondent in spite of repeated
follow up but as a bolt from the blue the applicant was slapped with
a notice under Section 226(3) of 'The Income-tax Act, 1961 (43 of
1961)' [hereinafter 'IT Act' for the sake of brevity] being notice
dated 01.02.2022 as the first respondent had not paid the sums/tax
deducted as TDS at source for the aforementioned 11 crores part
payment;
(vi) Aforementioned notice under IT Act was assailed by the
applicant by a writ petition being W.P.No.2592 of 2022 inter alia
arraying first respondent in captioned applications as 6th
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O.A.No.86 of 2022
and Arb Appln.No.68 of 2022
respondent in writ petition, notice was ordered in the said writ
petition on 08.02.2022 and the same is pending. Though learned
counsel mentioned that notice was ordered on 08.02.2022, on
verification in the website it was found that notice was ordered only
on 10.02.2022;
(vii) In the aforesaid circumstances, a huge sum of about
Rs.91 Lakhs odd was actually deducted from the account of
applicant and this is the trigger for the captioned applications;
(viii) Regarding manifest intention to arbitrate, (owing to
aforementioned trigger) necessary averments have been made in
paragraph No.13 of the support affidavit is learned counsel's say;
(ix) Aforementioned deduction is regarding 'Assessment
Years' ['said AYs'] 2019-2020 and 2020-2021;
(x) In the light of the aforementioned trigger, the captioned
applications were presented in this Court on 16.02.2022;
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