PURABI TELEFILMS Vs. CHANDRAMOHAN

JUDGEMENT

(1.) These are cross petitions filed under the provisions of Sec. 34 of the Arbitration and Conciliation Act, 1996 (the Arbitration Act) challenging the Award of the learned Sole Arbitrator dtd. 6/2/2024. By the impugned Award, the learned Arbitrator has dismissed the Counterclaim filed by Purabi Telefilms (Purabi) on the ground of the same being barred by limitation. Accordingly, Purabi Telefilms has filed Arbitration Petition No. 283 of 2024 challenging the Award. While dismissing the Counterclaim, the Learned Arbitrator has directed both the parties to bear the costs of the arbitration equally. The Respondent in the Counterclaim is aggrieved by the direction of the learned Arbitrator to bear the cost of arbitration equally and has accordingly filed Arbitration Petition No.303 of 2024.

(2.) The dispute between the parties relate to three cinematographic films titled 'Khanjar', 'Woh Jo Hasina' and 'Adalat'. Mr. Chandramohan N. Dhanwani is the sole proprietor of Tirupati Creations (both are referred to as Tirupati in the judgment) and claims to own copyrights in respect of three films. Purabi Telefilms, which is engaged in the business of acquisition and exploitation of copyrights in motion pictures in various media, expressed interest in acquiring rights in respect of the three films. By Deed of Assignment dtd. 23/7/2008, Tirupati agreed to convey and assign copyrights and negative rights of the film 'Khanjar' and 'Woh Jo Hasina' in favour of Purabi Telefilms for a period of 99 years for the territory of entire world. The agreed consideration between the parties was Rs.4,25,000.00 for the film 'Khanjar' and Rs.3,25,000.00 for the film 'Woh Jo Hasina' out of which Rs.1,25,000.00 for the film 'Khanjar' and Rs.75,000.00 for the film 'Woh Jo Hasina' was paid in advance and balance payment was agreed to be made within 30 days from public notice subject to settlement of objections and settlement of delivery of Sound and Picture negatives, betacam/digi betacam etc. Purabi Telefilms paid further amount of Rs.50,000.00 to Tirupati on 8/8/2008 thereby leaving balance amount payable in respect of the two films at Rs.5,00,000.00. Another Deed of Assignment dtd. 8/8/2008 was executed between Tirupati and Purabi Telefilms in respect of the film 'Adalat' for agreed consideration of Rs.40,000.00 out of which Rs.10,000.00 was paid on signing the Deed of Assignment and balance payment was agreed to be made within 30 days of public notice subject to settlement of claims and delivery of negatives etc. Purabi Telefilms issued public notice dtd. 12/9/2008 and received certain objections. On 29/1/2009, Purabi Telefilms terminated the assignment due to default in delivery of materials and requested for refund.

(3.) On 3/3/2009, parties executed Addendum to the first Deed of Assignment dtd. 23/7/2008 for films 'Khanjar' and 'Woh Jo Hasina' under which the total consideration for both the films was reduced from Rs.7,50,000.00 to Rs.6,50,000.00 in view of various objections received. The balance payment was agreed to be paid to Tirupati on receipt of sound and picture negatives and betacam of acceptable quality. Parties executed further Addendum to the Deed of Assignment in relation to films 'Khanjar' and 'Woh Jo Hasina' on 4/6/2012, under which the consideration payable for both the films was further reduced to Rs.5,00,000.00. Further payment of Rs.1,00,000.00 was made to the producer of the film at the request of Tirupati, leaving the balance amount of Rs.1,50,000.00 which was agreed to be paid upon handing over sound and picture negatives of the film 'Khanjar'. It appears that negatives in respect of the film 'Woh Jo Hasina' were received and the outstanding payment was only in respect of the film 'Khanjar'.