The Madras High Court has directed Tamil filmmaker Gautham Vasudev Menon and his production entity to refund ₹4.25 crore, with 12% interest, to a film financier (RS Infotainment). As per the latest update from Bar and Bench, the bench dismissed an appeal filed by the filmmaker and his firm, Photon Factory, against a 2022 single-judge ruling.
Gautham Vasudev Menon has directed Tamil films like Minnale, Kaakha Kaakha and Vaaranam Aayiram.Gautham Vasudev Menon directed to pay back financier
The report stated that the Division Bench of Justices P Velmurugan and Govindarajan Thilakavadi dismissed an appeal that had ordered repayment with interest from May 11, 2010 till realisation. The Division Bench said, “We are of the considered view that there is no infirmity found in the judgment and decree passed by the learned Single Judge, warrants any interference by this Court.”
The case was first taken into consideration out of a 2008 agreement for the production of a Tamil film, referred to as Production No.6. As per the agreement, RS Infotainment had agreed to fund ₹13.5 crore, with production scheduled to commence in December 2008 and expected to be completed by April 2009.
What did the producers say in defense?
Meanwhile, the producers argued that the financier had defaulted on scheduled payments, which prevented the continuation of the project. They contended that only ₹4.25 crore had been paid out of the agreed ₹13.5 crore and that the funding uncertainty forced them to shelve the project.
They went on to claim that the funds received had been utilised for production-related expenses and that the project was later revived and released as Nee Thane En Pon Vasantham.
The High Court rejected the defence of the producers, and said, “The defendants have not produced any tangible and valuable evidence to prove that the film was ever commenced.” The Court also rejected the contention that the later film Nee Thane En Pon Vasantham satisfied the contractual obligation. It further found that the producers had attempted to avoid liability through the structuring of entities.
It added, “Hence, it is seen that only with a deliberate intention of avoiding the contract with the plaintiff, the said defendants have changed their respective roles to other firms only to avoid payments to the plaintiff.”
Senior Advocate A Abdul Hameed with advocate Anbarasi Rajendran represented Menon and Photon Factory. Advocates V Anand and Mohamed Farook represented RS Infotainment.