DAGA FILMS Vs. LOTUS PRODUCTIONS

JUDGEMENT

(1.) This appeal is directed against a judgement and decree dated 4th of July, 1977 whereby the learned Judge dismissed the claim of the plaintiff and passed decree in favour of the defendant No. 2 on the basis of the counter-claim of the defendant.

(2.) The short facts of this case, which are relevant for the purpose of this appeal herein, are as follows :-

(3.) There was a distributorship agreement between the Plaintiff and the defendant No. 1 on 18th Mar. 1964 pursuant to which a sum of Rs. 1,30,000/- as minimum guarantee was to be paid by way of certain instalments by the plaintiff to the defendant No. 1. The plaintiff was also to spend Rs. 40,000/- on publicity. The plaintiff paid to the defendant No. 1 four instalments aggregating Rs. 60,000/-. there were some modifications of the agreement thereafter. On 17th Oct. 1969 there was a letter from the defendant No. 1 to the plaintiff recording an agreement to pay Rs. 1,95,000/instead of Rs. 1,30,000/- and the balance of Rs. 1,35,000/- was to be paid against delivery of 12 prints from Ramnod Research Laboratories. In Mar. 1970 there was an assignment of all rights and interest of the defendant No. 1 in favour of the defendant No. 2 which was recorded by a letter dated 12th of Mar. 1970 and this position is not disputed before us. There was a letter of 7th April, 1970 which, having regard to the contention raised herein, we set out hereinbelow :-