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M/S Geetha Arts vs A.Chandrasekaran & Ors

Supreme Court4 May 2009K.G. Balakrishnan · P. Sathasivam · Mukundakam Sharma

Ratio decidendi

The rule this decision rests on

Where an interlocutory order suspends an injunction on condition of a deposit, and the injunction is subsequently acted upon, the court at the appellate stage will not release the deposited amount to either party prior to a final decree, but will instead place the amount with the court and invest it in an interest-bearing fixed deposit, leaving the final distribution to be determined upon the disposal of the substantive appeal on merits.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

1
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.3188-3190 OF 2009 (@SPECIAL LEAVE PETITION (CIVIL)NO.10234-10236 OF 2009)

M/S.GEETHA ARTS Appellant(s)

VERSUS

A.CHANDRASEKARAN & ORS. Respondent(s)

ORDER

Application for exemption from filing O.T. granted.

Leave granted. Heard both sides.

2. The appellant herein is challenging the common order passed in

Miscellaneous Petitions i.e. 1 & 2 of 2009 in O.S.A.442 of 2009 and Misc.Petition 1 of 2009

in O.S.A.443 to 445 of 2008 by the Division Bench of the High Court of Judicature at

Madras. One of the Defendant is appellant before this Court. There was a contract between

the appellant and the plaintiffs. There were various disputes regarding the nature of the

contract. The appellant wanted to release the film "Gajini" (Hindi version) which was

objected to by the respondents. On 23.12.2008, an interim injunction releasing the

picture in question was passed by the learned Single Judge on the Original Side of the

High Court. This order was challenged before the Division Bench of the High Court which,

on 24.12.2008, suspended the order of the learned Single Judge dated 23.12.2008

subject to 2

the condition that the appellant should deposit a sum of Rs.5 crores to the credit of the

O.S.Appeals. It was brought to our notice that the said amount was deposited and the film has

already been released. Thereafter, applications were filed for direction to withdraw the

deposited amount. By the impugned order of the Division Bench, the earlier order was

varied and the sum of Rs.5 crores, which is deposited by the appellant, is directed to be

released to the First Respondent i.e. A.Chandrasekaran, Proprietor Saravana Creations,

subject to the furnishing of a Bank Guarantee for the said amount in the name of Registrar

General, High Court of Madras, to the credit of the O.S.Appeals. The said order is under

challenge in these appeals.

3. It is pointed out by learned senior counsel for the appellants that there is no

decree in favour of the plaintiff and order granting permission to withdraw the amount of

Rs.5 crores cannot be sustained. However, learned senior counsel for the Plaintiff has

pointed out that the Defendants, by releasing the film, have acquired huge profits and the

Plaintiff is entitled to get the money deposited.

4. It is to be noted and as rightly pointed out, that as on date there is no decree in

favour of the Plaintiff. In the above circumstances, we direct that the sum of Rs.5 crores,

deposited by the appellant herein, be kept with the Registrar General of the Madras High

Court and be invested in an interest bearing Fixed Deposit in a nationalised Bank for a 3

reasonable period. We request the Division Bench of the High Court to dispose of the

O.S.Appeals at an early date. The disbursal of the deposited amount would be subject to the

result therein.

5. Parties are at liberty to raise all their contentions before the Division Bench of

the High Court.

6. Appeals are disposed of accordingly. No costs.

..................CJI.

(K.G. BALAKRISHNAN)

....................J. (P. SATHASIVAM)

....................J. (Dr.MUKUNDAKAM SHARMA)

NEW DELHI;

4TH MAY, 2009.

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