movie “Kumki 2” stay judge Anand venkadesh

IN THE HIGH COURT OF JUDICATURE AT MADRAS
(Ordinary Original Civil Jurisdiction)

Arb. Appl. No. of 2025

In the matter of Section 9 of the Arbitration and Conciliation Act, 1996 and
In the matter of Finance Agreement dated 25.07.2018

S.Chandraprakash Jain
S/o. G. Sampath Raj,
No: 21/9, Cenotaph Road,
Second Lane, Alwarpet,
Chennai- 600 018. …Applicant

-Vs-

1. M/s GOD Pictures
Rep. by its Proprietor and Director,
Prabhu Solomon,
No: 57, 2nd Street, Valasaravakkam,
Chennai- 600 093.

2. Gemini FX
Rep. by its authorized Signatory,
Having office at
No: 28, New Bangaru Colony,
West K.K. Nagar,
Chennai- 600 078. … Respondents

AFFIDAVIT OF S.CHANDRAPRAKASH JAIN

I, S.Chandraprakash Jain son of G. Sampath Raj, aged about 68 Years, having office at No: 21/9, Cenotaph Road, Second Lane, Alwarpet, Chennai- 600 018, do hereby solemnly affirm and sincerely states as follows:

I am the applicant herein and as such I am well acquainted with the facts and circumstances of the case.

1. The applicant seeks to file this present petition seeking an order of interim injunction restraining the respondents from distributing and releasing the movie by name “KUMKI- 2” directed by the 1st respondent herein.

2. The applicant is doing finance business, mainly providing finance to the films production, distribution and for all film industry related activity. The 1st respondent is the film director and producer who previously directed the Tamil movie “Kumki” and presently producing and directing the movie “Kumki-2”. The 2nd respondent is the visual effects company doing business in the nature of “visual effects for featuring and broadcasting films” for the movies. Particularly, the 2nd respondent has given a confirmation letter dated 23.07.2018 to the applicant in respect of the said movie, hence a necessary party in the present petition.

3. The applicant submits that the 1st respondent previously directed the Tamil movie “Kumki” in the year 2012. After about 13 years, the 1st respondent started producing and directing the movie “Kumki- 2”, for which the 1st respondent required money for completing and managing the production costs. Hence, the 1st respondent approached the applicant herein seeking for finance support to a tune of Rs. 1,50,00,000/- (Rupees One Crore and Fifty Lakhs Only).

4. The applicant and 1st respondent pursuant to mutual negotiations entered into a finance agreement dated 25.07.2018 (herein after referred as “agreement”). As per the agreement, the applicant has lent a sum of Rs. 1,50,00,000/- (Rupees One Crore and Fifty Lakhs Only) which will carry interest @ rate of 24% per annum. The most significant terms of the agreement are:

a. As per the agreement all the payments shall be supported by the promissory notes or receipts signed by the 1st respondent.

b. The loan amount advanced shall be used exclusively used towards production of the film.

c. The loan advanced shall be repaid together with the interest at 24 % per annum on or before six months from the date of agreement or 7 days prior to the general release of the movie, whichever is earlier.

d. The 1st respondent at the time of entering into the agreement has handed over promissory notes and post-dated cheques towards repayment of the loan.

e. The 1st respondent undertook not to release or commercially exploit the movie in any manner anywhere in the world without first repaying the loan amount to the applicant.

f. The 1st respondent has also obtained confirmation letter dated 23.07.2018 from the 2nd respondent herein, acknowledging and confirming that the picture, sound negative & positive and the digital format of the film are processed, not to release such negatives and positives or the Hard disk of the film to the 1st respondent or to their nominees without first obtaining no objection or letter of clearance from the applicant.
g. Further, clause 13 of the agreement provides for dispute settlement through arbitration, by referring the disputes arising out of this agreement to a sole arbitrator. The seat of arbitration shall be at Chennai and Courts at Chennai alone have exclusive jurisdiction over the dispute.

5. The applicant submits that, while signing the agreement, the 1st respondent also executed a personal guarantee dated 25.07.2018, acknowledging to personally stand as guarantor the firm M/s God Pictures. Along with the agreement, the 1st respondent has also produced a confirmation letter obtained from the 2nd respondent acknowledging that:

a. That the 2nd respondent shall not remove the negatives (both picture and sound) or part with it or remove the positive prints for any purposes including not to allow for commercial purpose through real image, UFO or any other digital format screening without the written letter from the applicant.

b. That the 2nd respondent shall not permit the 1st respondent or anyone authorized by 1st respondent to release the said picture in Prints/ Qube/ PXDC/ UFO or allow the license for release by way of KDM or in any other format for their general release without clearance letter from the applicant.

c. That the 2nd respondent shall not use the negatives for telecine purposes during the said charge;

d. That the 2nd respondent shall not terminate the contract with our laboratories during the charge existence;
e. The 2nd respondent also agreed with the applicant to clear the charge before the general release of the above film and

f. The 2nd respondent shall strictly not to issue any letter related to the above rights to any third party without the applicant’s consent.

6. The applicant submits that, however the movie was not completed within the period of six months. Hence, the 1st respondent at the end of six months asked for the extended time and no interest was paid as well at the end of six months, followed by which, the 1st respondent kept extending the time for completion of the movie and no interest towards the principal amount was paid during those periods.

7. The applicant submits that during December 2020 the applicant asked the 1st respondent about the principal amount and interest towards the principal amount, in response to which, the 1st respondent issued a letter dated 17.12.2020 in which the 1st respondent has agreed to pay a sum of Rs. 50,00,000/- (Rupees Fifty Lakhs Only) before the release of movie “HATHI MERA SATHI”, which was directed by the 1st respondent with EROS International Pvt. Ltd., and the 1st respondent has further agreed to pay the balance before the release of movie “Kumki-2”. However, the 1st respondent has not paid any payment as agreed above and in turn kept extending the time for payment of principal amount along with interest on one or other reasons. Thereafter, the applicant and 1st respondent entered into amicable talks, pursuant to which, a sum of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) was mutually agreed as full and final settlement on 10.04.2023.
8. The applicant consequently sent a letter dated 15.04.2023 seeking the 1st respondent to pay the agreed full and final settlement amount of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) before 14th May 2023, since the release of the movie was tentatively scheduled on that date. The receipt of letter dated 15.04.2023 issued by the applicant was acknowledged by the 1st respondent as well. In response, the 1st respondent issued a letter dated 18.04.2023, in which, the 1st respondent while acknowledging the debt of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) payable to the applicant, the 1st respondent further acknowledged and promised to settle the said sum 10 days before the release of movie and furthermore promised that the 1st respondent shall not release the movie “Kumki 2” without settling the sum of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) to the applicant herein.

9. The applicant submits that, believing the assurances the applicant gave extended time to the 1st respondent for the payment of sum of Rs.2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only). Whereas, the 1st respondent has willfully breached the terms of agreement and has now proceeded to release the movie “Kumki 2” on 14th November 2025 without settling the sum of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) to the applicant herein, which is contrary to the terms and conditions of the agreement, as well as the terms of the 1st respondent letter dated 18.04.2023. Further, 2nd respondent also joined hands with the 1st respondent and is acting contrary to the terms of the confirmation letter dated 23.07.2018. Needless to state that, the applicant and respondents are strictly bound by the terms mutually agreed between them.
10. The applicant submits that, if the movie is released by the 1st respondent without making the payment, then the applicant would be put to severe hardship, and it would be highly impossible for the applicant to secure his debts from the 1st respondent herein. Further, the 1st Respondent has now officially announced the release of the movie titled “Kumki 2” on 14th November 2025, as is evident from the widely published promotional posters, materials, and public advertisements. The proposed release of the said film on the scheduled date, without settlement of the outstanding dues payable to the Applicant, will cause irreparable loss and grave financial hardship to the Applicant.

11. The applicant submits that even though the applicant has agreed to receive a sum of Rs.2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) as full and final settlement and since the 1st respondent did not honor his commitments as agreed, the applicant is entitled for the principle amount along with interest. As per the agreement dated 25.07.2018, the 1st respondent agreed to pay 24 % interest per annum along with compound interest at the rate of 24 % per annum. As per the agreed terms of the said agreement, now the amount payable by the 1st respondent is a sum of Rs. 7,20,10,000/- (Rupees Seven Crores Twenty Lakhs and Ten Thousand Only). As stated above since the 1st respondent committed default from the beginning and did not perform his obligation in terms of the agreement, the applicant now seeking to demand the entire sum along with interest as agreed.

12. The applicant submits that clause 13 of the agreement entered between the applicant and 1st respondent provides for settlement of disputes through arbitration, by referring the disputes to the sole arbitrator mutually appointed by the applicant and the 1st respondent. However, in the given circumstances, the applicant even to invoke arbitration proceedings by issuing notice to the 1st respondent seeking his consent for appointment of arbitrator, the 1st respondent shall evade or delay the consent for appointment of arbitrator to avoid the arbitration proceedings and shall proceed to release the movie on 14th November 2025. Even for approaching the Hon’ble Court seeking for appointment of arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, the applicant as per Section 11(5) of the Arbitration and Conciliation Act, 1996 shall move an application only after 30 days from the date of receipt of applicant’s request for appointment of arbitrator by the 1st respondent. Whereas, in the given circumstances, the 1st respondent shall release the movie on 14th November 2025 and effective step are being taken by the 1st respondent towards the same. All the requests of the applicant to settle the agreed sum of Rs. 2,50,00,000/- (Rupees Two Crores Fifty Lakhs Only) is willfully ignored by the 1st respondent. Hence, the applicant has no other option except to seek relief under Section 9 of the Arbitration and Conciliation Act, 1996 praying interim measures before this Hon’ble Court.

13. The applicant having left with no other option has come up before this Hon’ble seeking appropriate relief under Section 9 of the Arbitration and Conciliation Act, 1996 praying for grant of interim injunction restraining the respondents from releasing the movie “Kumki 2”.

14. The applicant submits that there exists a strong prima facie case for grant of interim injunction, as the applicant has established a clear contractual right that has been breached by the respondent. The materials placed on record sufficiently demonstrate that the applicant is entitled to protection of his rights pending arbitration, and therefore, this Hon’ble Court’s interference under Section 9 of the Arbitration and Conciliation Act, 1996 is warranted. It is submitted that, unless the present application is allowed, the applicant would be put to irreparable loss and hardship, whereas no prejudice will be caused to the respondents.

15. The applicant submits that the relief prayed for is incapable of valuation and as per order dated 12.09.2022 made in O.A.Nos.584 to 588 of 2021 and O.A.No.691 of 2017and Arb. A.Nos.250 and 251 of 2021 the applicant pays a minimum court fee of Rs.200/-under Schedule II Art.11(m) of the Tamil Nadu Court Fee and Suit Valuation Act, 1955. The subject matter falls under the purview of ‘Commercial Dispute’ as defined Under Section 2(1)(c)(i) and of “Specfied Value” as defined in Sec.2(1)(i) r/w Sec. 12 of the Commercial Courts Act, 2015 and therefore the Commercial Division of High Court is having jurisdiction to entertain the present application.

16. In view of the facts and circumstances, the present application is liable to be allowed.

For the reasons stated above it is prayed that this Hon’ble Court may be pleased to grant an ad interim injunction restraining the respondents from distributing and releasing the movie “Kumki 2” pending determination of the final arbitration and to pass such and further orders which deem fit and proper in the facts and circumstances of the case and thus render justice.

Solemnly affirm at Chennai Before me
This the 8th day of November 2025
Signed his name in my presence. Advocate : Chennai

IN THE HIGH COURT OF JUDICATURE AT MADRAS
(Ordinary Original Civil Jurisdiction)

Arb. Appl.No: of 2025

S. Chandraprakash Jain
… Applicant
-Vs-
M/s GOD Pictures
Rep. by its Proprietor and
Director, Prabhu Solomon,
and another … Respondents

AFFIDAVIT

M/s A.B.RAJASEKARAN 1756/11
K.VIJAYARAGAVAN 3454/10
R.MOHAMMED ASHISH 1143/21 &
TRIAMBAKESHWAR.S 5444/24

COUNSEL FOR APPLICANT