FILMISTAN DISTRIBUTORS Vs. POOJA MOVIES

JUDGEMENT

(1.) An agreement was executed on 9th July, 1971 between Filmistan Exhibitors and M/S Pooja Movies under which the former advanced a loan of Rs. 2,50,000.00 to the latter for production of the picture 'Ulfat' The interest stipulated was 12% per annum. It was agreed that in case the amount was not repaid within 12 months, the Filmistan Exhibitors would hold a charge over the distribution, exhibition . and exploitation rights of the said picture in the Delhi U.P circuit. Those rights were to be treated as transferred in its favour. Clause 10 of this agreement provided for arbitration of one Rajender Krishan of Bombay in case of any dispute arising out of or touching the meaning, scope & interpretation of the agreement. Clause 11 next envisaged that Delhi courts only would have the jurisdiction in the matter.

(2.) On 16.10.73, a number of documents were executed. One of them was a letter addressed by the Filmistan Exhibitors to the Filmistan Distributors (Petitioner) in which it was mentioned that the former had to recover Rs- 2,85,000.00 from M/s Pooja Movies, Bombay, the producer of the picture 'Ulfat.' The recovery of the amount was, it was mentioned, agreed to by the petitioner There were confirmations from the petitioner and M/s Pooja Movies on this letter of having agreed to this transfer. By another letter M/s Pooja Movies confirmed to the petitioner that apart from the said amount of Rs. 2,85,000.00 they had received Rs. 1,15,000.00 also from it, and in this manner rupees 4 lacs were due from M/s Pooja Movies towards the rights of distribution, exhibition and exploitation of the picture 'Ulfit' in Delhi U.P. circuit which had been acquired by the petitioner Ltd. Another similar letter was written by the petitioner to M/s Pooja Movies. and confirmed by the latter. An agreement was also executed between the petitioner and M/s Pooja Movies on the same day, in which the distribution, exhibition and exploitation rights of the picture 'Ulfat' for Delhi UP circuit were exclusively given by M/s Pooja Movies to the petitioner. There was a further provision that Rs. 50.000.00 would be given by the petitioner to M/s Pooja Movies against delivery of complete quota publicity material and another amount of Rs. 3,75,000/'- against delivery of 12 Brand New Quota Printers rights of the said picture. I need not reproduce the other terms and conditions contained in this agreement. Suffice it to say that in this agreement there was no arbitration clause. Clause 14 next was :

(3.) Now a petition u/s 20 of the Arbitration Act has been moved by the petitioner and the respondents impleaded are M/s Pooja Movies and its proprietor K.K. Rajdan. There is a naration of above facts, and it is mentioned that respondents had by their letter dated 9.7.1971 informed the Motion Picture Association Delhi to register the film in the name of the petitioner. Ths petitioner however was not till then in the picture. That Associations rules, it is contended, provide for arbitration in case of any dispute and differences. They have not been laid before the court. Reference has next been made to the agreement of 9.7.1971 providing for arbitration. It has been alleged that the film 'Ulfat' has been completed in the year 1982, and the petitioner has learnt that the respondent is trying to assign the distribution. Filmistan Distributors, vs. Pooja Movies exhibition and exploitation rights to to some other persons. Reference to arbitration has, therefore been sought.