✦ High Court of India · 29 Apr 2024

Murasoli Maran Towers v. Defendant No.1

Case Details High Court of India · 29 Apr 2024

Court

High Court of India

Decided

29 Apr 2024

Bench

P VELMURUGAN C

Length

2,074 words

Acts & Sections

Code of Civil Procedure Commercial Courts Act 2015 Evidence Act §65B

C.S.(Comm. Div.) No.307 of 2023 Murasoli Maran Towers, 73, MRC Nagar Main Road, MRC Nagar, Chennai – 600 028. (The suit as against the Defendant No.3 is dismissed as not pressed as per order dated 19.02.2024 in O.A.No.1054/2023 and A.No.6582/2023)... DefendantsPrayer: The suit filed under Order IV Rule 1 of O.S.Rules read with Order VII Rule 1 C.P.C.1908, praying to pass judgment and decree as follows:a) directing the 1st defendant to pay the plaintiff a sum of Rs.5,00,00,000/- (Rupees five crores only), along with a further interest calculated at the rate of 24% per annum on the principal sum of Rs.2,68,00,000/- (Rupees two crores and sixty eight lakhs only) from the date of this plaint till the date of realization of the amount and,b) granting an order of permanent injunction restraining the defendants or anyone claiming under them from exhibiting or dealing with the schedule mentioned film in any manner without first discharging the duties payable to the plaintiff.For Plaintiff : Mr.K.SurendarFor D1 : Set Ex-parte on 24.04.2024For D2 : Set Ex-parte on 19.02.2024For D3 : Dismissed as not pressed vide order dated 19.02.20242/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023JUDGMENTThis suit is filed for directing the 1st defendant to pay the plaintiff a sum of Rs.5,00,00,000/- along with further interest calculated at the rate of 24% per annum on the principal sum of Rs.2,68,00,000/- from the date of plaint till the date of realization and for permanent injunction restraining the defendants or anyone claiming under them from exhibiting or dealing with the schedule mentioned film in any manner without first discharging the duties payable to the plaintiff.2. The averments made in the plaint is that the plaintiff is a financier and has been providing financial assistance to his customers through his proprietorship entity namely, 'MVM Traders'. The plaintiff has been carrying on his business for more than fifteen years and as such, has earned enormous good will and reputation owing to his impeccable integrity and credibility in the conduct of his business. The 1 defendant is a film producer by profession and has been carrying on his business under 3/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023the name and style of 'Kalpataru Pictures'. During April, 2017, the 1st defendant had approached the plaintiff seeking for a loan citing urgent financial requirements for producing a film. In the ordinary course of business, the plaintiff had also sanctioned a loan to an extent of Rs.5,00,00,000/- (Rupees five crores only), which was to be released in favour of the 1st defendant as required by him from time to time. The 1st defendant further assured to repay the loan within a period of 18 months, along with an interest calculated at the rate of 36% per annum, as per the prevailing market rate. (i) Accordingly, a Finance Agreement was entered into between the plaintiff and the 1st defendant on 15.04.2017 recording the terms and conditions of the above said arrangement. Based on the said Agreement dated 15.04.2017, the plaintiff had started to disburse the loan amount in parts as requested by the 1st defendant and had released a total sum of Rs. 1,80,00,000/- (Rupees one crore and sixty lakhs only) on various dates 4/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023until 07.01.2019. Although the Agreement dated 15.04.2017 stipulated repayment of the loan dues within a period of 18 months along with interest, the 1" defendant failed to settle the loan account in terms of the said Agreement. The defendant represented that he had already commenced works for a movie titled as "NAA NAA" starring Sarathkumar, Sasikumar and others with music composed by Harasha Vardhan Rameshwar and directed by N.V. Nirmal Kumar, and requested for further financial assistance and extension of time for repayment of the dues. Thus, as per the request of the 1 defendant, another Finance Agreement was entered into between the plaintiff and the 1 defendant on 19.07.2019, whereby the loan limit was revised as Rs.3,50,00,000/- (Rupees three crores and fifty lakhs only) and vide Clause 5 of the Finance Agreement dated 19.07.2019, a first and paramount charge over the entire rights of the schedule mentioned film titled, 'NAA NAA' was created in favour of the plaintiff and the 1 defendant was obligated not to create any 5/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023third party rights pertaining to the schedule mentioned film without the written consent of the plaintiff. Subsequent to the said Agreement dated 19.07.2019, the plaintiff had released a further sum of Rs.88,00,000/- (Rupees eighty eight lakhs only) to the 1 defendant as requested by him on various dates. (ii) Thus, the plaintiff had totally released a sum of Rs.2,68,00,000/- (Rupees two crores and sixty eight lakhs only) to the 1st defendant as against the schedule mentioned film. At the time of the final disbursal done on 04.09.2021, the 1 defendant had issued a confirmation letter to the plaintiff acknowledging the debt and promising to settle the entire loan dues before release of the schedule mentioned film. Although the 1 defendant had agreed to repay the loan along with interest in a prompt manner without any delay, he has been extremely irregular in repayment and the last payment has been made by him on 22.10.2022 for a sum of Rs. 10,00,000/- (Rupees ten lakhs only). After the said date, despite repeated 6/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023demands made by the plaintiff, the 1st defendant has not made any payment towards the loan dues and as per the statement of account filed herewith, there is a total outstanding of Rs.6,04,13,939.74/- (Rupees six crores four lakhs thirteen thousand nine hundred and thirty nine and paise seventy four only) due and payable by the 1st defendant to the plaintiff as on 30.11.2023, which is inclusive of the interest as mutually agreed upon under Clause 3 of the Finance Agreement dated 19.07.2019. (iii). The plaintiff has learnt that without settling the loan dues, the 1st defendant has fraudulently assigned the rights pertaining to the schedule mentioned film titled 'NAA NAA' in favour of the 2nd and 3rd defendants without the knowledge and consent of the plaintiff, in utter contravention of Clause 5 of the Finance Agreement dated 19.07.2019. The 1st defendant had categorically undertaken to settle the loan dues payable to the plaintiff before the theatrical release of the schedule mentioned film. The plaintiff holds a prior charge over the rights of the schedule mentioned 7/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023film and the defendants cannot derive any commercial advantage through the schedule mentioned film without first settling the loan dues payable to the plaintiff. (iv). The 1st defendant has been deliberately evading the plaintiff's demands for settlement of the loan dues and the 2nd and 3rd defendants are attempting to gain commercial advantage through the schedule mentioned film despite knowing about the charge created thereon in favour of the plaintiff. The plaintiff had also initiated pre-suit mediation under Section 12A of the Commercial Courts Act, 2015 before the competent authority viz, the Tamil Nadu State Legal Services Authority, Chennai in TNSLSA No.5052/PIMS/98/2023 on 28.08.2023. However, since the defendants were not coming forward to participate in the mediation proceedings, the same was closed by way of a Non-starter Report dated 26.10.2023. (v). The plaintiff understands that the 1st defendant is attempting for theatrical release of the schedule mentioned film without discharging the 8/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023dues payable to the plaintiff. Further, the rights pertaining to the schedule mentioned film Including satelite rights, OTT rights, etc. have been assigned to the 2nd and 3rd defendants, in utter contravention of Clause 5 of the Finance Agreement dated 19.07.2019 and the proceeds thereof has been appropriated by the 1 defendant. Since the plaintiff holds first and foremost charge over the Schedule mentioned film, the defendants do not have any right or authority to deal with the schedule mentioned film without first discharging the debts payable to the plaintiff. Hence, the plaintiff is now constrained to institute the present suit for recovery of the loan outstanding from the 1st defendant and for an order of injunction restraining the defendants from dealing with the schedule mentioned film without first discharging the dues payable to the plaintiff. (vi). The total dues payable by the 1st defendant to the plaintiff stands at Rs.6,04,13,939.74/- (Rupees six crores four lakhs thirteen thousand nine hundred and thirty nine and paise seventy four only) as on 9/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 202330.11.2023, which is inclusive of the principal dues and the interest as mutually agreed upon under Clause 3 of the Finance Agreement dated 19.07.2019. However, the piaintiff hereby restricts his claim to a sum of Rs.5,00,00,000/- (Rupees five crores only). 3. The suit summons were served to the defendants. Despite service of summons on the second defendant, no one entered appearance on their behalf and therefore, the second defendant was set ex-arte by this Court on 19.02.2024. Though the first defendant represented through their counsel, they had not filed the written statement within the stipulated period and therefore, the first defendant was set ex-parte by this Court on 24.04.2024. The suit was already dismissed as against the third defendant as not pressed on 19.02.2024. 4. In order to substantiate the claim of the plaintiff, the proprietor of the plaintiff firm was examined as P.W.1; the witness to the finance agreement was examined as P.W.2 and the witness to the promissory note 10/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023was examined as P.W.3 and 9 documents were marked through P.W.1 as Ex.P.1 to Ex.P.9 in which, Ex.P.1 is the original finance agreement dated 15.04.2017; Ex.P.2 is the original promissory note dated 10.02.2018 executed by the 1st defendant; Ex.P.3 is the original finance agreement dated 19.07.2019; Ex.P.4 is the original confirmation letter issued by the first defendant dated 04.09.2021; Ex.P.5 is the online copy of Bank statement of accounts; Ex.P.6 is the original statement of accounts; Ex.P.7 is the original non-starter report dated 26.10.2023; Ex.P.8 is the online copy of movie posters dated 04.12.2023; Ex.P.9 is the online copy of screen shot of the third defendant's website dated 04.12.2023.5. On a perusal of the averments made in the plaint and the proof affidavit filed by the witnesses and also the documents marked on the side of the plaintiff', this Court finds that the plaintiff has proved their claims. As stated above, the suit was already dismissed as against the 3rd defendant as not pressed on 19.02.2024. 11/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023 6. Therefore, the suit is decreed as prayed for with costs and interest at the rate of 24% per annum from the date of plaint till the date of decree and thereafter 12% from the date of decree till the date of realisation. The time period for payment is three months. 7. Consequently, connected applications are closed. 29.04.2024(1/2)List of witnesses examined on the side of the plaintiff: 3 Witnesses1. M.Gopalakrishnan - P.W.12. C.Sabari Kumar - P.W.23. Yogaraj- P.W.3List of documents marked on the side of the plaintiff: 9 DocumentsS. No.ExhibitsDatedDescription of the Documents1Ex.P.115.04.2017 Original finance agreement 2Ex.P.2 10.02.2018Original promissory note executed by the 1st defendant 12/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023S. No.ExhibitsDatedDescription of the Documents3Ex.P.3 19.07.2019Original finance agreement 4Ex.P.4 04.09.2021Original confirmation letter issued by the first defendant 5Ex.P.5Online copy of Bank statement of accounts (Affidavit under Section 65B of the Indian Evidence Act filed and recorded); 6Ex.P.6Original statement of accounts7Ex.P.726.10.2023Original non-starter report 8Ex.P.8 04.12.2023Online copy of movie posters (Affidavit under Section 65B of the Indian Evidence Act filed and recorded); 9Ex.P.9 04.12.2023Online copy of screen shot of the third defendant's website (Affidavit under Section 65B of the Indian Evidence Act filed and recorded).List of witnesses examined on the side of the defendants: NILList of documents marked on the side of the defendants : NIL29.04.2024(2/2)Index : Yes / No Speaking Order: Yes / NoNeutral Case Citation : Yes/No13/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023Ksa-214/15 https://www.mhc.tn.gov.in/judis C.S.(Comm. Div.) No.307 of 2023P.VELMURUGAN. J.Ksa-2C.S (Comm. Div.) No.307 of 202329.04.202415/15

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