ASHWIN MANAGEMENT SAWANI Vs. RAJ ENTERPRISES

JUDGEMENT

(1.) The appeal by the Third, Fourth and Eighth Defendants arises from a judgment and order of a Learned Single Judge, dated 14 December 2011 on a motion for interlocutory reliefs.

(2.) The First Respondent is the original Plaintiff. The Second and Third Respondents are the original First and Second Defendants. The Second Defendant was a producer of a film titled "Hum Hai Rahi Pyar Ke". An agreement was entered into between the First and Second Defendants on 7 February 1991, under which the Second Defendant as producer, assigned to the First Defendant, described as World Right Controllers, sole, exclusive and perpetual rights in the motion picture, including copyrights and rights of distribution, exhibition and exploitation of the film. The First Defendant was to procure and arrange for distributors of the film to the satisfaction of the producer. The agreement provided for a guaranteed payment to the producer, described as a minimum coverage, of a sum of Rs.1 crore for the sale and disposal of all rights in the film, including distribution, exhibition and exploitation for all territories of the world.

(3.) On 30 October 1992, an agreement was entered into between the Plaintiff and the First Defendant to which the Second Defendant as producer of the film, was a confirming party. The recitals to the agreement stated that on the request of the First Defendant, the Plaintiff had agreed to assist in the discharge of obligations of the First Defendant as World Right Controllers by arranging for advances to the extent of an amount of Rs.45 lakhs. The agreement provides that the First Defendant had already received an amount of Rs.38 lakhs prior to the execution of the agreement. Clause 3 of the agreement stipulated the consideration that was payable by the First Defendant to the Plaintiff and was as follows: