Madras High Court
T.Mannan vs Christal on 23 June, 2025
Appeal(CAD) No.6 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23.06.2025
CORAM :
THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE
AND
THE HON'BLE MR.JUSTICE SUNDER MOHAN
Appeal(CAD) No.6 of 2025
&
C.M.P.No.4726 of 2025
T.Mannan .. Appellant
Vs.
1. Christal
2. R.Jharson
3. R.Jharsanya
4. Dr.J.Jaya Krishnan
5. M.Balavishwanathan .. Respondents
Prayer : Appeal under Section 13(1A) of the Commercial Courts Act, 2015
read with Section 96 of Code of Civil Procedure, 1908 against the order
dated 23.01.2025 in C.O.S.No.681 of 2022 on the file of Additional
Commercial Court at Egmore, Chennai.
For Appellant : Mr.B.Arvind Srevatsa
For Respondents : Mr.P.L.Narayanan
Senior Counsel
For Mr.B.Hariharan
For M/s.PLN Associates
for Respondents 1 to 3
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Appeal(CAD) No.6 of 2025
Not ready in Notice -
for Respondents 4 & 5
JUDGMENT
(Judgment of the Court was delivered
by the Hon'ble Chief Justice)
This is an appeal impugning the judgment dated 23.01.2025.
2. It was the original plaintiffs' case that first defendant contacted
original plaintiffs for financial assistance for production of the suit film. The
agreement dated 15.06.2015, which has been loosely worded as “for buying
cinematograph Tamil film”, confirms that a sum of Rs.56,00,000/- has been
paid by plaintiffs between 25.03.2015 to 15.06.2015. The amounts were
paid through bank transfers. As the amount was not re-paid, plaintiffs, who
are respondents 1 to 3 herein, filed the suit to recover a sum of
Rs.56,00,000/- plus interest thereon at 24% per annum totalling to
Rs.78,43,400/- and further interest on Rs.56,00,000/- from the date of the
suit till realisation and for costs.
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3. In the plaint, averments were made that first defendant, who is
appellant herein, assured to repay the loan with 24% interest per annum,
but did not comply with the loan agreement and after negotiations, it was
agreed that he will pay additional interest at 12% over and above 24%
agreed rate of interest as compensation. Paragraphs 3, 4 and 5 of the plaint
read as under:
“3. The Plaintiff respectfully states that the 1 st Defendant
contacted the Plaintiff for availing financial assistance for
production of the suit Film which has been loosely worded as “for
buying cinematograph Tamil Film” in the finance Agreement
dated 15.06.2015. The film so produced by the 1 st Defendant ie.
the suit film bears the star cast Vikram Prabhu as hero and
D.Imman as Music Director. The 1 st Defendant borrowed even
before the film could be titled, a sum of Rs.56,00,000/- (Rupees
Fifty Six Lakhs only) from the Plaintiff and from persons and
institutions associated with him. This borrowing took place
between 25.03.2015 to 15.06.2015. The above funds were
transferred by RTGS to the credit of the instructed account
bearing No.914020028671657 on several dates i.e., on
27.05.2015 through TMB Bank sum of Rs.20,00,000/-, on
27.05.2015 through SBI Bank sum of Rs.13,00,000/- and on
15.06.2015 through TMB Bank sum of Rs.23,00,000/-.
4. The Plaintiff respectfully states that subsequently fearing
recovery proceedings against the 1 st Defendant in respect of debts
outstanding under a prior movie production, the 1 st Defendant
titled the under production film as “Waga” and used the banner of
Vijayabhargavi Entertainment citing his brother-in-law
M.Balavishwaanathan as the Producer.
5. The Plaintiff respectfully states that the 1 st Defendant
assured to repay the said loan with 24% interest, which works out
to Rs.78,43,400/- (Rupees Seventy Eight Lakhs Forty Three
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Thousand Four Hundred only). The 1 st Defendant did not comply
with the terms of the loan agreement. Subsequently after
negotiation, it was agreed that the 1 st Defendant will pay
additional interest at 12% over and above the 24% agreed rate of
interest as compensation. The later portion of the said
compensation by the 1 st Defendant to the Plaintiff was not
recorded in writing.”
4. In the written statement dated 20.12.2022 appellant has not
denied specifically any of these averments in the plaint. In fact, paragraph
5, where appellant deals with the averments in paragraphs 3, 4 and 5 of the
plaint, reads as under:
“5. The allegations in Paragraph Nos.3, 4 and 5 of the Plaint are
specifically denied. The allegation that the 1 st Defendant in
respect of the debt outstanding under a prior movie production
had titled the under production film as 'Waga' and used the
banner of Vijayabhargavi Entertainment citing his brother-in-law
M.Balavishwaanathan as the producer is incorrect and denied.
The above allegations are self-serving allegations, are specifically
denied and the Plaintiff is put to strict proof of the same.”
5. Therefore, there is specific denial only with regard to the allegation
that first defendant in respect of debts outstanding under a prior movie
production had titled the under production film as “Waga” and used the
banner of Vijayabharagavi Entertainment citing his brother-in-law
M.Balavishwaanathan as the Producer. Therefore, the trial Court, based on
this non-denial and after considering the evidence, has decreed the suit as
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against first defendant, but dismissed as against defendants 2 and 3.
6. We find no infirmity in the impugned order and therefore, the
appeal is dismissed. Consequently, the interim application is also dismissed.
7. Counsel appearing for respondents 1 to 3 states that this being a
commercial suit, costs be awarded. We award a sum of Rs.1,00,000/-
(Rupees one lakh only) as costs to be paid within two weeks from today. If
the amount is not paid, it shall carry interest at the same rate of interest
which is awarded in the suit and can be recovered alongwith the decretal
amount in the execution petition.
(K.R.SHRIRAM, CJ) (SUNDER MOHAN,J.)
23.06.2025
Index : Yes/No
Neutral Citation : Yes/No
kpl
To
1. The Registrar General
High Court, Madras.
2. The Sub Assistant Registrar
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Original Side,
High Court, Madras.
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THE HON'BLE CHIEF JUSTICE
AND
SUNDER MOHAN,J.
(kpl)
23.06.2025
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