1. A contractual dispute between directors and a production entity concerning unpaid remuneration for film production services following agreement termination and subsequent copyright assignment. (Para 3 , 4 )
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2026 Supreme(Online)(Mad) 105798
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Kumaresh Babu, J
Sudha Kongara – Appellant
Versus
Dawn Pictures Private Limited – Respondent
Arb Appln No. 1279 of 2026 | O.A.Nos.632 & 633 of 2026
Important Points
The court may grant interim protection by directing the respondent to furnish a bank guarantee to secure a monetary claim pending arbitration, even while declining injunctive relief against the exploitation of the subject matter.
Subject
Civil - Arbitration
Act Referred
Headnote
(A) Arbitration - Interim Measures - Security for claim - Where a dispute exists regarding the payment of part remuneration for services rendered, the court may protect the interest of the applicants by directing the respondent to furnish a bank guarantee for the claimed amount pending the disposal of arbitral proceedings. (Para 13)
(B) Interim Injunction - Intellectual Property - Balance of convenience - In a dispute primarily concerning monetary dues, a request for an injunction against the release or creation of third-party rights over a film may be deemed unnecessary if the financial interest of the claimant is secured via a bank guarantee. (Para 13)
Issues: Whether the applicants are entitled to security for the unpaid remuneration and an injunction against the release and transfer of the film "Parasakthi" pending arbitration.
Result: Respondent directed to furnish a bank guarantee for Rs. 8,39,00,000/- within eight weeks.
(B) Interim Injunction - Intellectual Property - Balance of convenience - In a dispute primarily concerning monetary dues, a request for an injunction against the release or creation of third-party rights over a film may be deemed unnecessary if the financial interest of the claimant is secured via a bank guarantee. (Para 13)
Issues: Whether the applicants are entitled to security for the unpaid remuneration and an injunction against the release and transfer of the film "Parasakthi" pending arbitration.
Result: Respondent directed to furnish a bank guarantee for Rs. 8,39,00,000/- within eight weeks.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Nithayesh Nataraj, Vaibhav R Venkatesh
For the Respondents: P.S. Raman, Arun
For the Appellants/Petitioners: Nithayesh Nataraj, Vaibhav R Venkatesh
For the Respondents: P.S. Raman, Arun
Table of Contents
2. Applicants seek security for unpaid remuneration and injunctive relief against exploitation of film assets, while the respondent contends full payment was made and disputes liability. (Para 4 , 6 , 7 , 8 )
3. The court observed that resolving factual disputes regarding service remuneration requires interpretation of the underlying agreements, which is the province of the tribunal in arbitral proceedings. (Para 11 , 12 )
4. Interim measures under Section 9 of the Arbitration and Conciliation Act may be granted to protect the financial interest of a claimant pending arbitration regardless of technicalities. (Para 5 , 13 )
5. The respondent is directed to furnish a bank guarantee of the disputed amount, and the injunction applications are closed following the appointment of an arbitrator. (Para 14 , 15 )
6. Can the court grant interim monetary protection prior to the constitution of the arbitral tribunal?
Yes, under Section 9, a court may order a party to furnish a bank guarantee to secure the claim amount pending the adjudication of the merits by an arbitral tribunal. (Para 5 , 13 )
7. Should the court determine the merits of a contractual claim during interim proceedings under the Arbitration and Conciliation Act?
No, the court should not dwell on disputed facts or interpret the merits of competing claims; these matters are reserved for the arbitral tribunal. (Para 11 )
8. Does the requirement to secure a claim warrant the grant of injunctions over intellectual property?
Not necessarily; if the financial interest of the applicant can be adequately protected by a bank guarantee, injunctive relief against the exploitation of intellectual property may be dispensed with. (Para 13 )
PRAYER in Arb.Appln.No.1279 of 2026:-
Arbitration Application filed to direct the Respondent to secure or deposit a sum of Rs. 8,39,00,000/- (Rupees Eight Crores Thirty Nine Lakhs Only) together with interest at 12 percentage per annum from 08.02.2026 till the date of deposit, as a measure for securing the claim amount pending the award of the Arbitral Tribunal
PRAYER in O.A.632 of 2026:-
Original Application filed pass an order of ad- interim injunction restraining the Respondent, its agents, assigns, nominees, licensees, OTT partners, satellite broadcasters, digital platforms, and all persons acting for and on behalf of the respondent, from releasing, broadcasting, streaming, downloading, licensing, exhibiting, exploiting, or in any manner communicating to the public the Film titled “Parasakthi” (originally “Purananooru”) on any OTT (Over-the-top) media service, satellite channel, digital/ streaming platform, cable network, or any other media, electronic or otherwise, pending the passing of a final award in the arbitral proceedings to be initiated by the petitioners under Clause 15 of the Director Agreement dated 02.07.2024; and pass such further or other orders a this Hon’ble Court may deem fit in the facts and circumstances of the case.
PRAYER in O.A.No.633 of 2026:-
Original Application filed to pass an order of ad-interim injunction restraining the Respondent from alienating, transferring, assigning, mortgaging, hypothecating, licensing or in any manner creating third-party rights in or over the Film “Parasakthi” or its intellectual property (including the Final Screenplay and all derivative works) pending the final award in the arbitral proceedings.
In Arb.Appl. & both O.As:-
COMMON ORDER
The above captioned Original Applications and Arbitration Application were originally disposed of by a common order dated 07.10.2026, recording the consent of the parties for appointment of an Arbitrator by appointing an Arbitrator. Thereafter, on the Memo filed by the Court appointed Arbitrator seeking his recusal, former Chief Justice of Calcutta High Court was appointed as an Arbitrator. A letter had been received from the substituted Arbitrator expressing his desire to recuse himself for the reasons indicated therein. In that regard, when the matter was further listed before this Court, there was no representation on the side of the respondent and hence, the order for appointing the learned Arbitrator was directed to be kept in abeyance and in respect of the above captioned applications, an order of closure was recalled with a further direction directing the respondents to furnish security for a sum of Rs.8,39,00,000/-. Thereafter, the respondent had taken out an application to recall the order as the order was made ex-parte. The order dated 05.08.2026 was recalled and thereafter, the respective counsels had made their arguments on merits in the above captioned applications.
2. Heard Mr.Nithayesh Nataraj, appearing for Mr.Vaibhav R Venkatesh, learned counsel for the applicants and Mr.P.S.Raman, learned Senior Counsel for Mr.Arun, learned counsel for the respondent.
3. The learned counsel appearing for the applicants would contend that a Director Agreement was entered to with the third party for production of a film with R.S.Suriya in the lead role, in which the first applicant was to be the director of the film and the second applicant was to be the facilitator for the direction of the said film. He would submit that under the said Agreement, a consolidated remuneration of Rs.12.5 Crores payable in four (4) instalments had been envisaged. By a mutual consent, the aforesaid Agreement was terminated on 18.12.2024. The respondent had acquired the rights for the production of the said film from the third party and an independent Director Agreement came into being between the applicants and the respondent. Under the new Agreement, the remuneration payable to the applicants was fixed at Rs.15,00,00,000/- and only on payment of the aforesaid
