Madras High Court
M/S.Sun Tv Network Ltd vs M/S.Kichu Flims on 28 April, 2021
C.S.No.764 of 2014
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 28.04.2021
CORAM
THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
C.S.No.764 of 2014
M/s.Sun TV Network Ltd.,
Rep. by its Authorised Signatory,
Mr.M.Jyothi Basu,
Murasoli Maran Towers,
73 MRC Nagar Main Road,
MRC Nagar, Chennai - 28. ...Plaintiff
.Vs.
M/s.Kichu Flims,
Represented by its Proprietor,
Mr.Jagadish Chandran,
Golden Heights, #12-D, Blossom Cochin Road,
Excel Lane, Elamkulam,
Kadavanthara, Cochin- 682 020. ... Defendant
Plaint filed under Order VII Rule 1 of the Code of Civil Procedure
and Order IV Rule 1 of the Rules of the High Court of Madras, Original
Side, 1956 praying for:
a) recovery of a sum of Rs.1,43,02,400/- (Rupees One Crore Forty
Three Laksh Two Thousand and Four Hundred only) [{the sum being the
advance paid (Rs.36,45,000/-) and interest at the rate of 24% p.a from
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06.11.2012 to 20.08.2014 (Rs.15,30,900/-), the sum being the 2nd
advance amount paid (Rs.36,45,000/-) and interest at the rate of 24% p.a
from 19.11.2012 to 20.08.2014 (Rs.15,30,900/-), the sum being the 3rd
advance amount paid (Rs.24,30,000/-) and interest at the rate of 24% p.a
from 29.11.2012 to 20.08.2014 (Rs.10,20,600/-) and the sum of
Rs.5,00,000/- as liquidated damages}] as against the defendant with
future interest at 24% per annum from date of filing of the suit and till
date of realization for principal amount and
b) to pay costs.
For Plaintiff : Mrs.M.Sneha
for Mr.B.K.Girish Neelakantan
For Defendant : Set exparte on 25.04.2018
********
JUDGMENT
The plaintiff has come up with the above suit seeking recovery of a
sum of Rs.1,43,02,400/- due being the advance amount paid to the
defendant for satellite rights pertaining to a malayalam movie
“VENALODUNGATHEY”.
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C.S.No.764 of 2014
2. According to the plaintiff, the plaintiff which is a leading
Television Network in South India after broadcasting channels in South
Indian languages is also engaged in production and distribution of
movies. The plaintiff in the course of its business entered into an
assignment agreement to acquire copyright of films for Satellite
Television Broadcast as well as Terrestrial Television Broadcast. The
defendant representing itself as the producer and exclusive copyright
holder of the film title “VENALODUNGATHEY” approached the
plaintiff for assignment of copyright of the said film. An assignment
agreement was entered into between the plaintiff and the defendant on
29.10.2012, wherein, the defendant agreed to assign exclusive copyright
in respect of the Satellite Television Broadcasting, Direct to Home
Broadcast, Direct Satellite Service, Terrestrial Television Broadcast and
all other rights connected with exhibition of the said film for a period of
99 years.
3. As per Clause 2 of the said agreement, the consideration for the
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C.S.No.764 of 2014
entire transaction was fixed at Rs.1,35,00,000/- inclusive of all
applicable taxes. The plaintiff had agreed to pay an advance of
Rs.40,50,000/- on the date of the agreement, a sum of Rs.36,45,000/- was
actually paid on 06.11.2012, after deducting tax payable at source. It was
also agreed that a further sum of Rs.40,50,000/- to be paid on completion
of shooting of the film and the same was paid on 19.11.2012, on receipt
of the letter to the defendant dated 05.11.2012 (Ex.P3) stating that the
shooting has been completed. It was further agreed that Rs.27,00,000/-
shall be paid during the post-production of the said film and the same
was paid on 29.11.2012, upon information by the defendant on
27.11.2012 (Ex.P6). The balance of Rs.27,00,000/- was agreed to be
paid after general theatrical release of the film and on handing over the
duly confirmed lab letter by the concerned lab in favour of the plaintiff
along with the Censor Certificate and the Digital Intermediate data files
of the film.
4. The tentative date of release of the film was fixed as 14.12.2012
and telecast rights will commence from 14.06.2013 in India. According
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C.S.No.764 of 2014
to Clause 20 of the said agreement, if the release of the film is delayed
more than 90 days from the date of tentative release viz., 14.12.2012, the
plaintiff would have a right to exercise its option to cancel the
assignment agreement. The defendant had agreed and undertook to pay
all the advance paid by the plaintiff along with the interest at the rate of
24% per annum and it was further agreed that the defendant should pay a
sum of Rs.5,00,000/- towards liquidated damages if the plaintiff
exercises its option to cancel the agreement due to failure on the part of
the defendant to honour its commitment on general release.
5. The plaintiff would claim that the defendant had failed to
release the movie even after expiry of 90 days from the date of tentative
release. The plaintiff issued a legal notice on 24.06.2014, calling upon
the defendant to repay the advance amount of Rs.1,08,00,000/- with
interest at 24% per annum and liquidated damages that was fixed at
Rs.5,00,000/-. The notice did not evoke any response from the
defendant. Hence, the plaintiff is before this court seeking to recover a
sum of Rs.1,38,02,400/- with future interest at 24% from the date of the
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C.S.No.764 of 2014
suit till date of realization, along with Rs.5,00,000/- as liquidated
damages.
6. Though the defendant was served, it did not chose to enter
appearance to contest the suit.
7. Upon passing of the Commercial Courts Act, 2015, the
Commercial Division had taken cognizance of the suit on 11.04.2018.
Thereafter, the defendant was set exparte on 25.04.2018. The suit was
posted for exparte evidence.
8. One Mr.Jyothibasu S/o.Late Murugesan was examined as PW1.
He had filed his proof affidavit and Ex.P1 to Ex.P8 were marked on the
side of the plaintiff. Ex.P1 is the original Board Resolution authorising
the deponent of the proof affidavit to depose on behalf of the plaintiff.
Ex.P2 is the original Assignment Agreement dated 29.10.2012. Ex.P3 is
the letter from the defendant to the plaintiff dated 05.11.2012 informing
the plaintiff that the shooting has been completed. Ex.P4 and Ex.P5 are
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the payment vouchers evidencing payment of advance. Ex.P6 is the
letter dated 27.11.2012 from the defendant to the plaintiff seeking
payment of installment of 20% of the agreed amount. Ex.P7 is the
original payment voucher evidencing payment of a sum of
Rs.27,00,000/-. Ex.P8 is the notice issued by the plaintiff calling upon
the defendant to repay the advance amount paid with interest and
liquidated damages.
9. The evidence of PW1 coupled with above documents produced
would prove the case of the plaintiff. The defendant has not come
forward to defend the suit. Considering the above evidence, I am of the
considered opinion that the plaintiff has established the suit claim and is
entitled to a decree as prayed for.
10. In fine, the suit is decreed as prayed for a sum of
Rs.1,43,02,400/- along with interest at the rate of 24% per annum on
Rs.1,38,02,400/- from the date of the plaint till the date of decree and
interest at the rate of 6% per annum thereafter till date of payment with
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costs.
28.04.2021
dsa
Index : No
Internet : Yes
Speaking order/ Non-speaking order
List of the witnesses examined on the side of the plaintiff:
PW1 – M.Jyothibasu
List of Exhibits marked on the side of the plaintiff:
Sl. Exhibits Description Dated
No.
1 Ex.P1 Original Board Resolution authorising the 14.11.2011
deponent of the proof affidavit to depose
on behalf of the plaintiff
2 Ex.P2 Original Assignment Agreement 29.10.2012
3 Ex.P3 Letter from the defendant to the plaintiff 05.11.2012
informing the plaintiff that the shooting has
been completed
4 Ex.P4 Payment vouchers evidencing payment of 06.11.2012
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C.S.No.764 of 2014
Sl. Exhibits Description Dated
No.
advance.
5 Ex.P5 Payment vouchers evidencing payment of 19.11.2012
advance.
6 Ex.P6 Letter from the defendant to the plaintiff 27.11.2012
seeking payment of installment of 20% of
the agreed amount
7 Ex.P7 Original payment voucher 29.11.2012
8 Ex.P8 Notice issued by the plaintiff 24.06.2014
List of the witnesses examined on the side of the defendant: Nil
List of Exhibits marked on the side of the defendant: Nil
28.04.2021
dsa
R.SUBRAMANIAN, J.
dsa
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