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2022 Supreme(Online)(Mad) 76891

MADRAS HIGH COURT
D.Sivakarthikeyan – Appellant
Versus
K.E.Gnanavelraja and 2 others – Respondent
OA 86/2022



Advocates:
['M/s Anu Ganesan', '', 'SANJAY N GANDHI', 'PRIYAVARSHINI K', 'A P BALAJI', 'ATHIBAN VIJAY A K', 'M/S VIJAYAN SUBRAMANIAN']

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

1/15

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

2/15

https://www.mhc.tn.gov.in/judis

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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