Production Company Approaches Madras High Court Against Release Of Malayalam Film 'Janaki v. State Of Kerala' Over Unpaid Dues

The company has sought an interim injunction to restrain the producers of the movie– Cosmos Entertainment, from releasing the movie, either through a theatrical release or through OTT platforms, or through any satellite TV, or distributing/alienating the rights of the movie until the pending dues are paid to Peppermint.

Noting the urgency expressed by the parties, Justice Abdul Quddhose on Monday (May 5) asked the respondents to file their counter and posted the matter on May 7, before the vacation court.

Peppermint submitted that it has entered into a business transaction with Cosmos, investing Rs. 3 Crore towards the purchase of dubbing rights, film distribution and assignment rights, etc. Since the respondent, Cosmos, failed to make payments, the parties entered into a Memorandum of Understanding for acknowledgement of debt & repayment confirming that Rs. 3 Crore was obtained by J Phanindra Kumar, proprietor of Cosmos, from Peppermint Private Limited, through its sister concern Phars Films. Through the MoU, it was agreed that Rs. 50,000 would be paid to Peppermint and the remaining Rs. 2,50,000 shall be paid directly to Phars Films.

Peppermint further submitted that on the very next day of the MoU, the respondent showed its inability pay the balance amount and subsequently an addendum was executed whereby Cosmos created a security by giving rights of the movie. It was agreed that the security shall be cancelled on payment of the dues.

Peppermint claimed that even after the addendum, Cosmos failed to pay the amount despite several requests. It was also submitted that Cosmos was acting in a clandestine manner and attempting to sell the exhibition rights of the movie to third parties in clear violation of the MoU and the addendum to the MoU.

Thus, to protect their security and rights, Peppermint has filed the present petition under Section 9 of the Arbitration and Conciliation Act. It is claimed that if Cosmos is not estopped from devolving their rights of the movie and from releasing it, Peppermint would be left with no other security for recovering their dues and the recoverable amount. 

Advocate AP Balaji, Advocate Sanjay N Gandhi, and Advocate Sauganthika appeared for the applicants