Madras High Court Restrains Tamil Actor Vishal from Releasing Films Until Deposit of ₹15 Crore is Made

On Wednesday, the Madras High Court issued an order restraining Tamil actor Vishal Krishna Reddy from releasing any of his films until he creates a fixed deposit worth ₹15 crore, carrying interest, in connection with a suit filed by Lyca Productions. The suit is for the recovery of ₹21.29 crore borrowed by Vishal from a third party in 2019, which Lyca agreed to take over. In return, Vishal was to repay the principal amount along with an interest of 30 percent to Lyca.

Vishal had challenged the March 2022 order passed by a single-judge of the High Court, which had directed him to create the fixed deposit with a nationalized bank. However, the Division Bench of Acting Chief Justice T Raja and Justice D Bharatha Chakravarthy dismissed his appeal, stating that the single-judge's order was in accordance with the law.

Vishal's counsel had argued that Lyca had undertaken to take over the loan but had failed to discharge it on his behalf. On the other hand, Lyca's counsel contended that the single-judge's order had been passed after examining the bank statements of both parties and ascertaining that Lyca had paid the entire amount to discharge Vishal's loan.

The Court also noted that the single-judge's order should have contained an injunction clause in case Vishal failed to comply with it. Therefore, it modified the order and restrained Vishal from releasing his films until he creates the fixed deposit, as said in the order:

"Thus, there shall be a clause (iv-a) to the effect that failing compliance of the above direction, there shall be an injunction against the defendant from in any manner releasing in cinemas or OTT platforms or in any mode whatsoever all or any of the feature films/ film projects produced or financed by the defendant in any manner whatsoever, pending disposal of the suit. Thus, while we do not find any merit in the appeal, it is necessary to add the above default clause in the order,"

The Court's decision has significant implications for the Tamil film industry and is likely to have an impact on the ongoing legal battle between Vishal and Lyca Productions.

Case: Vishal Krishna Reddy v Lyca Productions Private Limited

Counsel for Applicant: Mr. A. Chidambaram

Counsel for Opposite Party: Sr Counsel Mr. V Ragavachari, Mrs. Hema Srinivasan

Order Date: 05.04.2023 

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