In a significant development, the Madras High Court has ordered an immediate stay on the release of two highly anticipated Tamil films, Chiyaan Vikram’s Thangalan and Suriya’s Kanguva. The court’s decision has sent shockwaves through the industry, especially as Thangalan was set for a pan-India release on August 15, 2024, and Kanguva is scheduled for release on October 10, 2024.
Court Orders Rs 1 Crore Deposit for Each Film
The bench, comprising Justice G. Jayachandran and Justice CV Karthikeyan, directed Studio Green Production Company, owned by KE Gnanavelraja, to deposit Rs 1 crore for each film with the official assignee of the High Court by Wednesday, August 14. Until this amount is deposited, the release of both films has been halted. The court further instructed the production house to deposit an additional Rs 1 crore before the release of Kanguva.
The Case of Unpaid Debts and Bankruptcy
This legal entanglement dates back to 2016 when an execution petition was filed by the official assignee of the Madras High Court. The case revolves around a bankrupt businessman, Arjunlal Sundardas, who was accused of defrauding investors in his finance and real estate companies. Sundardas, who passed away, had agreed to co-produce a film with Studio Green in 2011, promising to invest Rs 40 crore.
Between September 2011 and October 2012, Sundardas paid Rs 12.85 crore to Studio Green, but the deal fell apart due to a lack of funds. The production house claimed it had already spent the money during pre-production and was unable to return the full amount. Eventually, Sundardas’ company received only Rs 2.5 crore back, leaving an outstanding balance of Rs 10.35 crore.
Court’s Verdict in 2019 and Unfulfilled Orders
In 2019, the court ruled in favor of the official assignee, ordering Studio Green to pay Rs 10.35 crore with 18% interest from December 2013. The court found the production house’s claims unconvincing, particularly because it could only produce photocopies of an alleged agreement with Sundardas. Studio Green had argued that it had compensated Sundardas by giving him the rights to remake three Tamil films in Hindi: All in All Azhaguraja, Biryani, and Madras. However, the production house failed to provide the original agreement, claiming it was destroyed in the 2015 floods.
The court, however, found this explanation inadequate. The bench noted that no evidence had been provided to prove that the remake rights of these three films were equivalent to the outstanding Rs 10.35 crore. The court’s 2019 order was never complied with, prompting the official assignee to file a new petition, leading to the current stay on the release of Thangalan and Kanguva.
The Fallout
The High Court’s order has put a major damper on the release of these big-budget films. Thangalan, directed by Pa. Ranjith and starring Chiyaan Vikram, has been eagerly awaited by fans across India. Similarly, Kanguva, starring Suriya, has also generated considerable buzz, especially after the release of its trailer.
The court’s decision underscores the importance of legal compliance in the film industry, particularly when it comes to financial agreements. With the order in place, the future of these films now hangs in the balance, depending on whether Studio Green can meet the court’s demands in time. As of now, the fate of Thangalan and Kanguva remains uncertain, and fans will have to wait to see if these films will hit the screens as scheduled.
