PVR PICTURES LTD. Vs. IGLASS MEDIAWORKS AND ANR.

JUDGEMENT

(1.) THE plaintiff filed the present suit for permanent injunction and for recovery of Rs. 64,02,000 with pendent lite and future interest. The plaintiff M/s PVR Pictures Ltd. is a company incorporated under the Companies Act, 1956, having its registered office at 61, Basant Lok, Vasant Vihar, New Delhi -110057. The present suit is being filed through Mr. Brijesh Arora, son of Shri Y.K. Arora, Company Secretary who has been authorized to file and institute the present suit before this Court by virtue of a board resolution dated 12.2.2009 as passed by the Board of Directors of the company in his favour.

(2.) THE case of the plaintiff is that the defendants approached the plaintiff for co -production of the feature film titled BINODINI (hereinafter referred to as 'said movie') in the month of May, 2007. The plaintiff agreed to co -produce the movie BINODINI with the defendants after thorough negotiations which lasted for several sessions.

(3.) IT is stated that in terms of the said MOU, the movie had to be co -produced by the parties to the suit, where the plaintiff had to fund the entire budget of the movie and the defendants had to look after the production activities. The said movie had to be written and directed by defendant No. 2, Shri Bibhash Mukherjee. It was further mutually agreed under the MOU dated 16.5.2007 that the plaintiff will be entitled to charge an interest @ 16% per annum on the funds made available by it for the production from the date of providing such funds till the same are recouped from the collection of the movie. It was further agreed that the distribution rights of the movie had to be taken and exhibited by the plaintiff and the plaintiff for this had to charge a commission of 20% on the net box office collection for such distribution of all rights.