MAGNUM FILMS Vs. GOLCHA PROPERTIES

JUDGEMENT

(1.) By way of this judgment, Suits Nos. 580-A/85, 622-A/85 and two applications (1. A. 2047/85 in Suit No. 1154-A/83 and LA. 2829/85 in Suit No. 580-A/85) are being decided. The judgment is being recorded in the file of Suit No. 580-A/85.

(2.) M/s. Magnum Films (hereinafter referred to as the claimant) is a partnership firm. It is carrying on business of distribution, exhibition and exploitation of films. M/s. Golcha Properties Pvt. Ltd. (hereinafter referred to as the objector) is a company incorporated under the Indian Companies Act. It is carrying on the business of exhibition of films in a cinema known as 'GOLCHA CINEMA', Delhi.

(3.) On May 3, 1982, the objector and the claimant entered into an agreement by virtue of which a picture having the title "NIKAAH' was released on and from 15th October 1982 for exhibition in Golcha Cinema, Delhi besides a number of other cinemas of Delhi, New Delhi and Uttar Pradesh. The picture did roaring business. It was exhibited in Golcha Cinema tor 40 weeks ending on 21st July 1983. Vide the aforesaid agreement, the cinema hire was agreed upon at Rs. 52,000.00 per week. That hire was to be retained by the objector and the balance after meeting the expenditure was to be paid to the claimant. The objector made payments to the claimant in respect of the first 8 weeks but did not pay anything thereafter. On June 15, 1983, the accounts were gone into between the parties, and it was agreed that the objector shall pay a sum of Rs. 3,93,628.14 P. in full and final settlement towards the dues of the claimant in respect of the exhibition of the picture up to 34th week. It was further agreed that Rs. 75,000.00 would be payable forthwith and that the balance would be payable @ Rs. l0,000.00 per week commencing from June 21,1983. In pursuance of that agreement, the claimant handed over cheque No. 131175 dated 15th June 1983 on State Bank of Patiala drawn in favour of M/s. B. R. Films, Bombay. That cheque, was, however, dishonoured on presentation and not even a single penny was paid out of the aforesaid amount of Rs. 3,93,628.14 P. According to the claimant, the objector is liable to pay that amount besides the income for the exhibition of the picture from 35th to 40th week.