NARAYANAN RAMASAMY Vs. SUN TV NETWORK LIMITED

JUDGEMENT

(1.) This Original Petition has been filed under Sec. 34 of the Arbitration and Conciliation Act, 1996, to set aside the Final Award dtd. 29/8/2023 passed in Arbitration O.P.(Comm.Div.) No.253 of 2022 passed by Mr.Justice V.Bharathidasan, Former Judge, Madras High Court, as Sole Arbitrator, in its entirely and to direct the respondent to pay the cost.

(2.) The dispute arise out of a Theatrical Distribution Agreement pertaining to the film 'Sarkar' vide Agreement dtd. 26/10/2018. The parties had agreed on a minimum guarantee sum of Rs.79,50,00,000.00 payable by the petitioner. The petitioner being unable to pay the minimum guarantee would come up with a payment of Rs.29,00,00,000.00 alone, leaving a balance of Rs.51,00,00,000.00. In order to settle the disputes, the parties negotiated for an amicable settlement and a Memorandum of Compromise was entered into between the parties on 23/9/2021, in and by which, the petitioner transferred his immovable properties in favour of the respondent towards part settlement of dues to the respondent, leaving a balance of Rs.33,74,90,090.00. The Memorandum of Compromise contains arbitration clauses (clauses 10 and 11). The petitioner did not honour the said compromise and disputes arose between the parties.

(3.) The respondent/claimant made a claim before the Arbitral Tribunal and after trial, the Arbitral Tribunal has awarded a sum of Rs.1,08,97,380.00 in favour of the respondent/claimant. Aggrieved by the said award and challenging the same on the ground that the relief granted to the claimant is illegal and unsustainable, being outside the scope of arbitration in terms of Sec. 28 of the Act r/w Sec. 34(2)(a)(iv) and 34(2)(b)(ii) of the Arbitration and Conciliation Act, 1996, the present Original Petition has been filed.