MOTI MAHAL THEATRE Vs. BHARATI CINEMA PVT. LTD.

JUDGEMENT

(1.) The Plaintiff is a financier and distributor of cinematographic films. The Defendant No. 1 is a producer of such films and the Defendant No. 2 is a director of the Defendant No. 1. By an agreement in writing entered into by and between the Plaintiff and the Defendant No. 1 oh February 22, 1957, it was agreed that the Defendant No. 1 would appoint the Plaintiff as the sole and exclusive distributor of a Bengali film named 'Bagha Jatin' for exhibition and exploitation. The Plaintiff under the said agreement would, from time to time, advance moneys to the Defendant No. 1 to the extent of Rs. 80,001 and/or spend the same for or on account of the latter and would be entitled to agreed commission realizable from the box office receipts of the film. The said agreement in writing was in the usual form prevalent in the trade and contained an arbitration clause as follows:

(2.) It was provided in the said agreement that the sums advanced or spent by the Plaintiff for and on account of the Defendant No. 1 would be the first charge on the film.

(3.) The Defendant No. 2 allegedly guaranteed due performance and/or execution of the agreement. The rate of commission payable to the Plaintiff as aforesaid was allegedly increased by a subsequent arrangement made on June 28, 1958.