'Thangalaan' And 'Kanguva' Release In Trouble: Madras HC Orders Studio Green To Pay Rs 1 Crore For Each Film; Here's Why

Justice G Jayachandran and Justice CV Karthikeyan ordered Gnanavel Raja of Studio Green, to pay the said amount based on a petition filed by the high court’s official assignee, as per a report in The Hindu.

In 2011, Studio Green and late Arjunlal Sunderdas, decided to co-produce a film by investing Rs 40 crore each. Sunderdas paid an initial amount which was spent on the film's pre-production but he left the film due to the financial problems.

Post this, Sunderdas filed a petition against Studio Green. The High Court then appointed the Assignee to deal with Arjunlal after he was declared insolvent.

In 2019, a division bench ordered Studio Green to repay an amount of Rs 10.35 lakh with 18% interest per annum to Sunderdas' creditors.

Studio Green argued they had settled the debt by giving Sunderdas the rights to remake three Tamil films and sell the rights to get the money.

As per a report in News18, the bench in the order said, “No evidence has been produced to justify the stand that the remake rights of the three movies would be exactly equal to Rs 10.35 crore. There is also no oral evidence to that extent, let alone documentary proof. The documents produced are photocopies. The explanation that the originals have been lost in floods did not withstand cross examination''.

It further stated, “In the first place, the alleged agreement between the insolvent and the second respondent (Studio Green) in this regard has not been produced. The date of the agreement had also not been stated. The value and the goodwill of the three movies have also not been stated''.

We hope 'Thangalaan' and 'Kanguva' get a smooth release.