The Madras High Court has directed Studio Green, headed by K.E. Gnanavelraja, to deposit Rs 1 crore each before the release of their upcoming films, “Thangalaan” and “Kanguva.” This ruling follows an execution petition filed by the High Court’s Official Assignee in connection with a long-standing financial dispute. The court’s directive aims to ensure that the studio fulfills its financial obligations and resolves the pending legal issues before proceeding with the release of these anticipated films.
Background of the Debt Recovery Case
The case stems from a dispute involving the late businessman Arjunlal Sunderdas, who was accused of defrauding investors through his finance and real estate ventures. In 2011, Sunderdas had agreed to co-produce a film with Studio Green, pledging Rs 40 crore for the project. However, financial difficulties led him to withdraw from the agreement after only paying Rs 12.85 crore. Studio Green, facing financial constraints of their own, claimed they could not refund the remaining amount due to pre-production expenses.
Disputed Claims and Court’s Findings
Studio Green contested the Official Assignee’s request. Alleging that Sunderdas had been granted Hindi remake rights to three Tamil films as part of their agreement. The court, however, expressed skepticism regarding Studio Green’s claims. Pointing out that the evidence provided, including photocopies of documents, was insufficient and unconvincing. Consequently, the court ordered Studio Green to deposit Rs 10.35 crore, plus 18 percent interest dating back to 2013, in order to settle the dispute.
Impact on Kanguva Release
Due to Studio Green’s failure to comply with a 2019 court order. The Official Assignee has sought to attach all of Studio Green’s future films until the studio adheres to the court’s directives. This ongoing legal battle is likely to affect the release schedules of Studio Green’s forthcoming projects and place additional financial strain on the company. The situation remains unresolved, with the studio’s film releases contingent on resolving the outstanding legal and financial obligations imposed by the court.