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IN THE HIGH COURT OF JUDICATURE AT MADRAS Reserved on Delivered on

23.06.2021 02.07.2021 CORAM :

THE HONOURABLE MR.JUSTICE N.SATHISH KUMAR Original.Application Nos.211 and 212 of 2021 and Application No.2043 of 2021 in O.A.No.211 of 2021 M/s. Lyca Productions Pvt. Ltd., Rep.by its Director Mr.Neelakant Narayanpur No.55, Vijayaraghava Road, T.Nagar, Chennai 600017. ... Applicant [in all Applications]

versus Mr.S. Shankar S/o Mr.Shanmugam No.5/115, Ashok Street, Bharathi Avenue, Injambakam Chennai 600 115. ... Respondent [in all Applications]

Prayer in O.A.No.211 of 2021: Original Application filed under Order XIV Rule 8 of Original Side Rules read with Section 9(i)(ii)(d) & (e) of the Arbitration and Conciliation Act, 1996, to grant order of ad-injunction, restraining the Respondent from infringing and exploiting the exclusive right of the Applicant under Clause 9 and 10 of Director, Author, Scriptwriter agreement dated 03.07.2019 Prayer in O.A.No.212 of 2021: Original Application filed under Order XIV Rule 8 of Original Side Rules read with Section 9(i)(ii)(d) & (e) of the Arbitration and Conciliation Act, 1996, to grant and order of Mandatory Injunction, directing the Respondent not to involve in any other film either for directing or scriptwriting or screenplay without completing the film Indian-2, as per Director, Author, Scriptwriter, Screenplay Writer Agreement dated

03.07.2019.

Prayer in A.No.2043 of 2021: Application filed under Order XIV Rule 8 of Original Side Rules read with Section 9(i)(ii)(d) & (e) of the Arbitration and Conciliation Act, 1996, to direct the respondent to furnish security to the extent of Rs.170,23,92,293/- in favour of the Applicant.

For Applicant : Mr. R. Prabhakaran For Respondent : Mr. P.S. Raman, Senior Counsel for M/s.D.Saikumaran

O R D E R

Original Application No.211 of 2021 has been filed for injunction restraining the Respondent from infringing and exploiting the exclusive right of the Applicant as per Clause 9 and 10 of the Agreement dated 03.07.2019 entered into between them; Original Application No.212 of 2021 has been filed for mandatory injunction, directing the Respondent not to involve in any other film either for directing or scriptwriting or screen play without completing the film 'Indian-2' as per the Agreement and A.No.2043 of 2021 has been filed to furnish security to the extent of Rs.170,23,92,293/- in favour of the Applicant.

2. The brief facts leading to file these applications are as follows:

2(a) Applicant is an Indian entertainment company and Producer.

Respondent, who prominently works in Tamil Cinema and he is one of the highest paid film directors in the country and particularly known for extensive use of visual effects, prosthetic make-up and state-of-art technology. A Director, Author, Scriptwriter and Screenplay Writer Agreement was entered into between the Producer/Applicant and the Director/Respondent on 03.07.2019. As per the above agreement the Respondent shall be the Director, Author and Scriptwriter for the entire film viz., “Indian-2”. The role of the Applicant as Producer is to arrange the production schedule, draw budgets. The role of Respondent shall be overall artistic responsibility for the film. The Director will be responsible for making of the Film and its final cut with best of his ability in such a manner that the most optimal utilization of the available resources and oversee that the feature film is completed within the COP (Close of Play). The agreement is also provides for exploitation of rights, which interalia gives exclusive right to the applicant to produce and exploit the film in this agreement and to all the intellectual property. Clause 9.5 of the agreement clarified that the Respondent not to enter into any agreement that interferes with the Rights granted to the Petitioner by the above agreement. As per the agreement the opening pooja for commencement of the film was conducted on 18.01.2019 and the initial schedule of shooting began on 18.01.2019. The Producer has spent a sum of Rs.170 Crores including GST and he has also remitted an advance of Rs.14.40 Crores from 11.09.2017 to 29.01.2019 to the Director/Respondent. The Respondent had completed 60 percent of the film's portions, including the intermission sequence. The film has been delayed to proceed due to unavoidable reasons.

2(b) When the matter stood thus, the Respondent recently joined hands with Telugu Actor Ram Charan for a Pan India, which is scheduled to commence shortly. Hence, it is the contention of the Applicant that as per the agreement the movie is supposed to be COP at the end of March 2021. Hence, if the Respondent is permitted to direct another film without completing the film with the applicant company the applicant will incur a huge loss and there is also apprehension that the Respondent might have the same story and screenplay sequences as that of Indian-2. Admittedly when the applicant is the Copyright Owner, such copy right is a statutory right recognised, the Respondent has not supposed to engage another movie without completing the film Indian-2 as per the agreement. Time is essence of the commercial contract between the parties. Amount involves in this project is Rs.236 Crores. Hence, seeks order of injunction restraining the Respondent infringing and exploiting the exclusive right of the Producer in O.A.No.211 of 2021; Mandatory Injunction, directing the Respondent not to involve in any other film either for directing or scriptwriting or screenplay without completing the film Indian-2 in O.A.No.212 of 2021 and also praying for direction to the respondent to furnish security to the etent of Rs.170,23,92,293/- in favour of the Applicant in A.No.5043 of 2021.

3(a). In the counter filed it is stated that the Respondent is in t

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