RELIANCE MEDIA WORKS LIMITED Vs. B R FILMS

JUDGEMENT

(1.) By this petition filed under section 34 of the Arbitration & Conciliation Act, 1996, the petitioner has impugned the arbitral award dated 10th December, 2012 passed by the learned arbitrator thereby allowing part of the claims made by the respondent. Some of the relevant facts for the purpose of deciding this petition are as under :

(2.) Some time in the month of October, 2007, the respondent was in the process of producing a Hindi movie titled "Banda Yeh Bindass Hai". The proposed title of the film was changed from "Pappu Pass Ho Gaya" to "Banda Yeh Bindass Hai". Prior thereto, on 11th August, 2007, the respondent had addressed a letter to Mark Meyerson of Twentieth Century Fox admitting that the proposed film "Pappu Pass Ho Gaya" was an Indian adaptation of film "My Cousin Vinny" and offered a token of US $ 25, 000 to the said Twentieth Century Fox for the same. On 20th September, 2007, IDBI had sanctioned financial assistance to the respondent of about Rs.750 lakhs for the said film titled "Pappu Pass Ho Gaya" on certain terms and conditions. The respondent had accepted the said offer and had accepted the terms and conditions of the financial assistance offered by the said IDBI by addressing a letter on 22th September, 2007. On 3rd October, 2007, the said IBDI and the respondent executed a loan agreement by which the respondent had borrowed a sum of Rs.750 lakhs from the said IDBI. A Deed of Hypothecation was also executed by the respondent in favour of IDBI admitting the first charge on the negatives of the film "Pappu Pass Ho Gaya". On 4th October, 2007, a tripartite Laboratory Agreement was executed between the petitioner, which was then titled as "Adlabs Films Limited", the respondent herein and the IDBI recording various terms and conditions agreed by and between those parties.

(3.) On 16th October, 2007, correspondence was exchanged between the respondent and the said Twentieth Century Fox with respect to adaptation of the film "My Cousin Vinny" in the form of the proposed film "Pappu Pass Ho Gaya'. On 27th December, 2007, the petitioner and the respondent executed "The Term Sheet" in respect of the said film "Banda Yeh Bindass Hai" which title was changed from "Pappu Pass Ho Gaya". On 14th March, 2008, the petitioner and the respondent entered into a Distribution Agreement under which the respondent granted exclusive distribution rights to the petitioner in respect of the film "Banda Yeh Bindass Hai" on various terms and conditions recorded therein.