The court pointed out that the film was produced by obtaining loans from various sources and it would be allowed to be released only after paying off some of those liabilities. file | Photo courtesy: The Hindu

The Madras High Court on Wednesday (November 13, 2024) cleared the way for the release of the film starring actors Suriya, Bobby Deol and Disha Patani. Canguwaon Thursday (November 14, 2024) by modifying an order passed on Monday (November 11, 2024). Its producer KE Gnanavelraja has been demanded to deposit ₹20 crore by Wednesday midnight.

Justice G. Jayachandran and Justice C.V. Karthikeyan’s division bench disposed of a revision application filed by Studio Green Films Pvt Ltd after recording its plea that it had deposited ₹6.41 crore on Wednesday (November 13, 2024) and it would deposit another ₹3.75 crore. Till 12th December.

Senior advocate PS Raman, assisted by Niranjan Rajagopalan, told the court that the producer has so far deposited a total amount of ₹10.35 crore, which is equivalent to the principal amount, with the official assignment of the High Court, and only the interest portion had to be given up. .

It was also reported that the producer was willing to opt for a one-time settlement after the release of the film to fully meet its liability and had asked the court to modify its order to deposit ₹20 crore by Wednesday (November 13). requested. 2024) night because it was too difficult and unable to comply with it.

The court was told that the film was produced by obtaining loans from various sources and it would be allowed to be released only if some of those liabilities were paid off, and in such circumstances, it would be necessary for the producer to deposit another huge amount. It will be difficult. ₹20 crore by Wednesday (November 13, 2024) midnight.

Mr. Gnanavelraja’s father and partner of Studio Green, VK Easwaran, filed an affidavit in support of the modification application, stating that the financial success of the film would be at stake if the film is not released as scheduled on Thursday (November 14, 2024). There will be adverse effects. , and this will also not help the official assignee to recover the dues.

The issue pertains to the agreement between Mr. Gnanavelraja and notorious businessman Arjunlal Sundardas (since deceased) in 2011 to co-produce a film by investing ₹40 crore. As per the agreement, the businessman had invested ₹12.85 crore before backing out of the project.

Subsequently, in 2014, the High Court declared Arjunlal Sunderdas bankrupt and directed the official assignee to take stock of all his assets and liabilities so that hundreds of people who had deposited money in his real estate and finance companies could be reimbursed. Their dues can be paid.

While conducting the assessment as directed by the court, the official assignee found that Mr. Gnanavelraja owed ₹10.35 crore to the insolvent, and hence, filed an application before the High Court in 2016 seeking a direction to him to repay the amount. 18% interest since 2013.

The Division Bench allowed the application in 2019 and directed the manufacturer to repay the entire liability of ₹10.35 crore along with interest into the account of the official assignee. Since then, the official assignee studio had been taking steps to recover the outstanding amount in certain portions before each release of a film produced by Green.