AI Structured Summary
Not yet generated for this judgment
Judgment
N.Mala, J
This Interim Application has been filed seeking interim injunction restraining the respondents from entering into third party contracts with respect to the movie “Paayum Oli Nee Enakku” on the strength of the Film Acquisition Agreement between the Petitioner and the 1st respondent dated 10.03.2022 and/or commercially exploiting the film in any manner, including releasing the same in theatres or other platforms, pending disposal of the civil suit.
The applicant is a film producer, which is registered with the Film and Television Producers Guild of South India under the film sector and is also a producer member of the Tamil Film Producers Council. The applicant has produced about 6 films thus far starting from 2002. The various films produced by the applicant are 'Srusthi' and 'Santheyalli Nintha Kabira' in Kannada, 'Vamsam', 'Raju Maharaju', 'Saradaga Ammayitho' and 'Gem' in Telugu.
According to the applicant, he invested a sum of Rs. 5,61,41,095/- in making the movie and the original budget of the movie was only Rs.5,00,00,000/- and that the budget was over-shot by Rs.61,41,095/-. According to the applicant, he had entered into a third party agreement for the Hindi dubbing rights of the said movie with M/s.Angel Media (P) Ltd. The movie was almost completed by March, 2022 and the re-recording of the film was scheduled. The second respondent called the applicant to Chennai for a meeting with the film's Music Director on 10.03.2022. Instead of the second respondent, his mother namely Anushree came to the office of the applicant and soon thereafter, the first respondent and the four other persons entered into the room along with mother of the second respondent. The said persons threatened the applicant with dire consequences and on threat of mutilation of his thumb and on gun point, the applicant was forced to sign and put his thumb impression on certain papers. When the applicant asked for a copy of the document, he was informed that it would be furnished to him later.
As the applicant was threatened with dire consequences, if he informed the same to any person or to the police, he left for Hosur, Karnataka. As he was completely traumatised by the preceding events he remained in seclusion for a few weeks. After sometime, his Manager Mr.R.Gangadhar, approached him with a notice received from M/s.Angel Media (P) Ltd, stating that the applicant had cheated them by selling all the rights pertaining to the movie to some third party. Thereafter, the applicant mustered the courage to speak about the sordid episode to his manager.
On the advice of his manager, he lodged a complaint before the Valasaravakkam Police Station. As there was a doubt on the receipt of complaint by the said police station on jurisdictional aspect, he was made to run from pillar to post for several days and was ultimately informed that the Central Crime Branch was competent to receive the complaint. The Central Crime Branch took up the investigation and the complaint was taken on record on 18.08.2022 under E.2967296/22 C.No.347/DC/CCB II/Crl/22 and thereafter assigned to CCB EDF-2, Team 4. It was only in the course of the enquiry by the Central Crime Branch that the applicant came to know that the document signed by him on 10.03.2022 was a 'Film Acquisition Agreement'. As he was an illiterate person, he was not aware of the contents of the document at the time of the incident and only during enquiry he came to know that the respondents had forcefully transferred the entire movie rights for a consideration of Rs.9,78,08,210/- under the “Film Acquisition Agreement” dated 10.03.2022.
According to the applicant, as the document was taken from him by threat and coercion, the same had no legal sanctity and further the recitals, particularly the alleged consideration under the document was fictitious as no consideration was passed on to him at any point of time.
The applicant, therefore, submitted that the document was null and void as the same was not supported by consideration and was also obtained by force and coercion. In light of the said facts, the applicant sought for injunction against the respondents from using, commercially exploiting or otherwise claiming to be the producers of the movie.
The learned counsel for the petitioner submitted that the agreement was invalid in law as the same was obtained by the respondents by coercion and force. The learned counsel further submitted that the consideration stated therein was never paid to him. The counsel further referred to the terms of the agreement to show that the consideration as recited was not paid. The relevant portions of the agreement are extracted hereunder:
“1. Assignments of Rights
1.1 In consideration of the amount of Rs. 9,78,08,210/-(Rupees Nine Crores Seventy-Eight Lakhs Eight Thousand Two Hundred and Ten Only) to be paid by the Purchaser to the Vendor in the manner more specifically set out under Schedule E to this Agreement, the Vendor hereby grants, to the Purchaser all the rights including but not limited to NFT, Crypto, Blockchain, Metaverse, web3 or other such forms (existent or new) in the Film (including but not limited to the Negative Right of the Film) in perpetuity and irrevocably for the exploitation, exhibition and distribution of such rights in the Territory.
SCHEDULE E
PAYMENT OF TERMS
1.Consideration of Rs.9,78,08,210/- (Rupees Nine Crores Seventy-Eight Thousand Two Hundred and Ten Only).
2.The consideration is payable in the below manner:
The Purchaser herein has given the financial help near about Rs.5,60,00,000/- (Rupees Five Crores Sixty Lakhs Only @ 2% per month interest from 15th January 2019 to 10th March2022) to the Vendor herein, time to time, to the said Film, and the total amount is Rs.9,78,08,210/- (Rupees Nine Crores Seventy-Eight Thousand Two Hundred and Ten Only) and the matter has settled between the Vendor and the Purchaser for Rs.9,78,08,210/- (Rupees Nine Crores Seventy-Eight Thousand Two Hundred and Ten Only). The consideration is exclusive of GST and subjct to TDS.”
The learned counsel for the petitioner referred to the said recitals and submitted that whereas, in para 1.1., it was stated the consideration of Rs.9,78,08,210/- was to be paid by the Purchasers to the vendor, in Schedule E, it was stated that Rs.5,60,00,000/- was already given as financial help along with 2% interest per month from 15.01.2019 to 10.03.2022. The counsel submitted that the interest was calculated upto 10.03.2022 which was the date of the agreement and a fancy amount of Rs.9,78,08,210/- was recited as the consideration.
The counsel submitted that the bank accounts filed in the typeset of papers would reveal that the applicant had spent the amount from out of his own pocket and the transactions in the account were proof of the same.
I have perused the bank transactions and other related documents and I find that the contentions of the petitioner are prima facie made out. It is further to be noted that the mode of payments to various persons involved in the movie is also reflected by the applicant's bank transactions. Moreover, the agreement under which the respondents claim title to the rights of the movie is questionable and under investigation by the Central Crime Branch. I am therefore of the view that a prima facie case is made out and also that the petitioner would be put to irreparable loss and hardship, if the movie is released.
In the light of the above discussion, there shall be an order of Ex-parte interim injunction restraining the respondents from entering into third party contracts with respect to the movie “Paayum Oli Nee Enakku” in the strength of the “Film Acquisition Agreement” dated 10.03.2022 and further injunction restraining the respondents from commercially and C.S.(Comm Div).No.214 of 2022 exploiting the film in any manner, including releasing the same in theatres or other platforms, till 26.10.2022. The applicant shall take notice to the respondents. Private notice is permitted returnable by26.10.2022.
Post the matter on 26.10.2022.