BANK OF MADURA LIMITED Vs. C K DHARMARAJAN

JUDGEMENT

(1.) This is a suit for declaration of the plaintiff-s right and charge over the Tamil colour picture -Ilaya Thalaimurai- and for recovery of the sum of Rs. 10,94,103.10 with subsequent interest thereon with a charge on the negatives, release prints and other materials connected with the said picture. The plaintiff is the Bank of Madurai Limited.

(2.) The brief facts of the case of the plaintiff are these: The plaintiff is a banking institution having its registered office at Madurai. The first defendant is carrying on the business as film, producer under the name and style of Yogachitra. He approached the plaintiff to finance his second colour picture by name -Ilaya Thalaimurai- staring Sivaji Ganesan, Vanishree and others. The plaintiff bank sanctioned a loan of Rs.5,00,000 repayable in 12 monthly instalments with interest thereon at 11% over the Reserve Bank rate of interest subject to a minimum of 20% per annum. The first defendant executed a promissory note for the said sum of Rs.5,00,000 on 6.2.1975 on which date a sum of Rs.25,000 was advanced. He has also executed a hypothecation deed hypothecating his rights in the said picture, the negatives, the release prints and other materials. A further amount of Rs.95,000 was made available to the first defendant on 7.2.1975 and another sum of Rs.1,00,000 on 12.3.1975 and the balance subsequently. The second defendant, who is the brother of the first defendant, stood guarantee for the due repayment of the said sum by his letter, dated 11.5.1975. The first defendant has also given a letter to the fifth defendant-laboratory where the picture was being processed directing the laboratory not to release the prints of the said picture without obtaining the prior consent of the plaintiff. The fifth defendant has also acknowledged the first and paramount charge of the plaintiff in the said picture to the charges of the laboratory. (b) In June, 1975, the first defendant approached the plaintiff for a further advance of Rs.3,00,000 and it was sanctioned on 14.6.1975 and made available to the first defendant in June, 1975 itself. In respect thereof the first defendant executed a promissory note on 14.6.1975 for the said sum of Rs.3,00,000 promising to repay the same with interest at 11% over and above the Reserve Bank rate of interest subject to a minimum of 20%. By way of security for the second loan he hypothecated the negatives, release prints and other materials connected with the picture -Ilaya Thalaimurai- and executed a hypothecation deed dated 14.6.1975. The second defendant guaranteed the due repayment of the said loan also by his letter dated 28.7.1975. The defendants 3 and 4 have also guaranteed the repayment of both these loans by their letter dated 20.11.1976. (c) The picture could not be completed in time and after delay it was advertised for release on the Deepavali day on 23.10.1976. But, the loans were not repaid and several proposals were made by the first defendant, but, in vain. The plaintiff came to know that the first defendant had received the amounts from various distributors parting with these rights of distribution. The defendants 6 and 7 have also filed suits and obtained interim orders of injunction. The fifth defendant-laboratory is entitled to a charge for the payment of the processing fee etc. (d) According to the plaintiff, as on 23.1.1977 a sum of Rs. 6,87,484.34 in respect of the first loan and a sum of Rs. 4,06,618.76 in respect of the second loan are due, in all, Rs.10,94,103.10 and the suit is laid to recover the same and for declaration of the plaintiff-s right in respect of the said film.

(3.) The defendants 1 and 3 to 7 remained absent and are set ex parte.