Mumbai: The Madras High Court on March 23, 2023, ordered Gautham Vasudev Menon and his company, Photon Factory, to refund Rs 4.25 crore with 12% interest to a production house. The court dismissed the appeal filed by Menon and his production house against the repayment of the amount with interest.
A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi upheld the order passed by Justice Senthilkumar Ramamoorthy on April 5, 2022. The order was passed after a civil suit was filed by RS Infotainment in 2013. The petition stated that the filmmaker did not make the movie despite receiving the funds.
“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,” said the division bench.
Gautham Vasudev Menon case
The case dates back to 2008. An agreement involving the making of a film, Production No.6, stated that RS Infotainment agreed to pay Rs 13.5 crore for the production of the movie. The project was scheduled to begin in December of that year and wrapped up by April 2009.
As a result, RS Infotainment paid Rs 4.25 crore and an additional advance of Rs 2.5 crore. However, the film financier then filed a complaint stating that the production of the film had not begun despite handing over the agreed funds for the film. It sued for Rs 9.53 crore to be refunded.
Meanwhile, Menon and his firm blamed RS Infotainment. They said the project was shelved as only Rs 4.25 crore had been paid out of Rs 13.5 crore. However, the Madras High Court observed, “The defendants have not produced any tangible and valuable evidence to prove that the film was ever commenced.”
They added, “The defendants failed to establish that the vouchers and bills are related to the agreed film.” The bench said that Menon and his company had breached the contract made with RS Infotainment.