SAMBU FILMS Vs. M/S VIJAYA PICTURES

JUDGEMENT

(1.) THE Appellants in the O.S.A. are defendants 1, 3, 5, 6 to 13 and the legal representatives of the 4th defendant in C.S. No. 126 of 1969. THE suit C.S. No. 126 of 1969 is for recovery of a sum of Rs. 1,28,299.42 together with interest on the principal amount of Rs. 91,393.55 from the date of plaint till the date of decree at 12% per annum and thereafter at 6% per annum till the date of payment.

(2.) THE case of the plaintiff in C.S. No. 126 of 1969 is as follows: THE first defendant firm started production of a Motion Picture in Telugu titled as Srikakula Andhra Mahava Vishnu in the beginning of the year 1965. Defendants 2 to 5 are the partners of the first defendant firm. By a distribution agreement dated 16.6.1965 marked as Ex. P.1 in the case between the plaintiff on the one hand and the first defendant firm represented by the 2nd respondent as its Managing Partner on the other hand, the plaintiff was granted the sole and exclusive rights of distribution over the said Telugu motion Picture Srikakula Andhra Maha Vishnu for the areas comprising Srikakulam, Visakhapatnam, East Godavary, West Godavary, Krishna, Guntur, Nallore, Chittoor, Anantapur, Cuddappah, Kumool of Andhra Pradesh and Bellary District of Mysore State, Ganjam and Korapet Districts of Orissa State and Bengal Circuit including Madhya Pradesh. THE distribution Agreement Provided that (a) that the plaintiff should pay the defendants as distnbution advance a sum of Rs. 3,00,000, (b) that the plaintiff should in addition to the said sum of Rs. 3,00,000 advance a further sum equivalent to the cost of release prints against the delivery of the raw film and also the cost of publicities such as newspaper publicities, banners, cut outs, etc., (c) that the defendants should deliver the release prints to the plaintiff on or before 31.3.1966, (d) the distribution period is for five years from the date of the first release of the picture; (e) that the plaintiff should reimburse itself all the amounts advanced to the defendants or spent on behalf of the defendants from the nett distributor's share of the collection of the picture after deducting their distribution commission; (f) that if the plaintiff was unable to realise all the amounts advanced, amounts spent and expenses incurred by it on behalf of the defendants on account of the picture together with the distribution commission within one year from the date of the first release of the picture in the areas reserved to it, the plaintiff is entitled to claim such unrealized amount remaining due to it under the distribution agreement, with interest, without prejudice to the plaintiff's right or distribution of the picture for the unexpired period covered by the distribution agreement. Pursuant to this distribution agreement dated 16.6.1965 the plaintiff advanced the defendants the entire amount of Rs. 3,00,000 and also advanced the amount of release prints, publicities etc. which came to Rs. 5,07,025.49 ps. THE picture was released on 6.5.1966. Although more than three years and five months have elapsed from the date of release of the picture, the plaintiff was able to realise only Rs. 4,09,337.21 ps. and there is still a balance of Rs. 91,393.55 ps. being the unrealised amount and Rs. 36,903.87 ps. towards interest at 12% on the unrealised amount from the date of expiry of one year, i.e. 6.5.1966 from the date of the first release of the picture, both the amounts aggregating to Rs. 1,26,299.42 ps. and the defendants are liable to pay the said sum to the plaintiff.

(3.) ARE the debits of the plaintiff with reference to publicity charges correct?