K Punniyamoorthy and Another v. Escape Artists Motion Pictures and 3 Others

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 30-06-2026 CORAM THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY Arb Appln Nos. 1244 & 1245 of 2026 and Application No.2438 of 2026 in O.A.No.283 of 2023 Arb Appln Nos. 1244 & 1245 of 2026

1.K Punniyamoorthy S/o.G.Kannan, Residing at 5-B River Heights Apartments, 315, Valluvar Kottam High Road Nungambakkam, Chennai-600034.

2.K Premkumar, S/o. G.Kannan, Residing at 5B River Heights Apartments, 315, Valluvar Kottam High Road Nungambakkam, Chennai-600 034. ..Applicants Vs

1.M/s. Escape Artists Motion Pictures Rep. by its Sole Proprietor Mr.Madan Pandy No.69-A, Habibullah Road, T.Nagar, Chennai-600017.

2.Gautham Vasudev Menon No.613 Gandhi Street, Kanagam, Taramani, Chennai-600 113.

3.S. Venkataraman, S/o. Mr.Somasundaram Old No15, New No 44-46, Rathinam Street Gopalapuram, Chennai-600 086. Page1 of 10

4.M/s. Kondaduvom Entertainment A Partnership firm, Rep. by its partner Mr.Gautham Vasudev Menon, 69A, Habibullah Road, T. Nagar, Chennai-600 017. ..Respondents Prayer in Arb.Appln.No.1244 of 2026 : Application is filed under Order XIV Rule 8 of O.S.Rules Read With Section 9(i)(e) of the Arbitration and Conciliation Act, 1996, to modify the order dated 30.04.2026 passed in OA.No.283 of 2023, by including the claim of Rs.10.22 crores payable to the Applicants herein as per the Compromise Decree dated 03.04.2018 in OP No.932/2017 in the list of payments to be made to the parties who hold the court orders as per the order of this Hon'ble Court or in the alternative, direct the Advocate overseers / observers to ear mark and retain a sum of Rs.10.22 crores representing the Applicants admitted entitlement under the compromise Decree dated 03.04.2018 in OP.No.932/2017 and not disburse the said amount without permission from this Hon'ble Court. Prayer in Arb.Appln.No.1245 of 2026 : Application is filed under Order XIV Rule 8 of O.S.Rules Read With Section 9(i)(e) of the Arbitration and Conciliation Act, 1996, to modify the order dated 30.04.2026 passed in OA.No.283 of 2023, by incorporating that the Advocate overseers/observers shall with the assistance of an independent auditor, verify all alleged creditors and amounts mentioned in paragraphs 3,5,6 and 7 of the 4th Respondent's Affidavit dated 27.04.2026 and shall recognize as pre-release movie liabilities only such sums as are found to be genuine and directly related to the production and exploitation of "DHRUVA NATCHATHIRAM" and actually advanced to the 4th Respondent. Page2 of 10 In both Arb. Applns: For Applicants : Mr. S.R.Rajagopal, Senior Advocate for M/s.Surya Teja S S Nalla For R1 : Ms. Inthu Karunakaran For R2 & R3 : Mr. A. Abdul Hameed, Senior Advocate for M/s. AAV Partners For R4: Mr. T.R.Rajagopalan, Senior Advocate for Ms.Revathi Manivannan For Observers: Mr. M.V.Swaroop Mr. H.S.Hredai For 2nd Applicant in O.A.No.283 of 2023 : Mr. S.R.Sundar for Ms. S.R.Subaashini A.No.2438 of 2026

1.Gautam Vasudev Menon No.61/3 Gandhi St, Kanagam, Taramani, Chennai 600113.

2.Mr.S.Venkatramanan S/o.Mr.Somasundaram, Old No.15, New No.44 and 46, Rathinam Street, Gopalapuram, Chennai -600 086.

3.M/s.Kondaduvom Entertainment Rep by its Director Mr.Gautham Vasudev Menon, 69/A, Habibullah Road, T.Nagar, Chennai - 600 017. ..Applicants Vs Page3 of 10

1.K Punniyamoorthy

2.Mr.K.PremKumar (R1 and R2 are residing at 5-B, River Heights Apartments, 315, Valluvar Kottam High Road, Nungambakkam, Chennai 600 034.)

3.M/s.Escape Artists Motion Pictures Rep.by its Sole Proprietor Mr.Madan Pandy, No.69A, Habibullah Road, T.Nagar, Chennai 600 017. ..Respondents Prayer in A.No.2438 of 2026: Application is filed under Order XIV Rule 8 of the OS Rules read with Section 9(i)(e) of the Arbitration and Conciliation Act, 1996 to grant an additional time of 30 days to the Applicants to release the movie 'Dhruva Natchathiram' on or before 15/07/2026, in terms of the Order dated 30/04/2026 passed by this Hon'ble Court in O.A.No.283 of 2026. For Applicants: Mr. A.Abdul Hameed, Senior Advocate for Ms. Anbarasi Rajendran for M/s.AAV Partners For R1 & R2: For R3: For Observers: For 2nd Applicant in O.A.No.283 of 2023: Mr. S.R.Rajagopal, Senior Advocate for M/s.Surya Teja SS Nalla Ms.Inthu Karunakaran Mr.M.V.Swaroop Mr.H.S.Hredai Mr.S.R.Sundar for Ms.S.R.Subaashini COMMON ORDER M/s K.Punniyamoorthy and K.Prem Kumar (the Original Applicants) had applied, at the pre-reference stage, under Section 9 of the Arbitration and Page4 of 10 Conciliation Act, 1996 (the A&C Act) for an interim injunction (O.A.No.283 of 2023) by invoking the arbitration clause in an agreement with the first respondent. Said application was to restrain the release of the Tamil movie 'Dhruva Natchathiram'. Referring to clause (iv) of the Memorandum of Understanding dated 03.04.2018 (the MoU) between the Original Applicants and the first respondent, which provides for the transfer of the 50% share of Mr. Madan Pandy/first respondent in 'Dhruva Natchathiram to the Original Applicants, initially an order of an ad interim injunction was granted on

03.04.2023 just prior to the scheduled release of the movie and such order was extended from time to time. Arbitral proceedings were not initiated pursuant thereto, but the interim order continued in force.

¶2Thereafter, extensive arguments were made on the merits of the application under Section 9 of the A&C Act. In response to the monetary claim of the Original Applicants for a sum of Rs.10.22 crores from Escape Artists Motion Pictures, which is a proprietory concern of Mr.Madan Pandy, learned counsel for the first respondent referred to the above mentioned clause (iv) of the MoU to contend that only a share of profit was assigned and that the money claim is untenable. Various third party creditors also intervened in the matter and contended that the movie should not be released without making payments due to them under orders of Court or orders of arbitral tribunals. After considering the facts and circumstances, recognising that the interest of several Page5 of 10 stake holders were involved and that the balance of convenience is not in favour of extending the order of interim injunction, pending determination of parties rights in arbitral proceedings, order dated 30.04.2026 was issued for the creation of a dedicated account into and out of which all credits and debits relating to the movie 'Dhruva Natchathiram' would be made. This order should be read in conjunction with and in continuation of earlier order dated 30.04.2026.

¶3The Original Applicants carried order dated 30.04.2026 in appeal. The appellate court refused to interfere with the order but permitted the appellants to file a modification application. The modification applications have been filed pursuant thereto. Meanwhile, respondents 2 to 4 in O.A.No.283 of 2023 have applied for an extension of time for the release of the movie.

¶4Learned Senior Counsel for the Original Applicants submits that the amounts stated to be payable to Mr.Jaswant Bhandari, Mr.Vijay Kothari and M/s SPM Arts LLP in the affidavit dated 27.04.2026 of Mr.Gautam Vasudev Menon are incorrect. He has handed over a chart stating that Mr.Vijay Kothari did not provide a loan or advance any amount for the production of 'Dhruva Natchathiram'. In the alternative, he submits that security should be provided by the respondents for the monetary claim of Rs.10.22 crores. Page6 of 10

¶5At the hearing on 25.06.2026, Mr.A.Abdul Hameed requested for time to obtain instructions as to whether the observers could verify the amounts said to be payable to creditors in relation to 'Dhruva Natchathiram'. At today's hearing, an affidavit affirmed on 29.06.2026 has been filed. Paragraphs 2 to 5 thereof are set out below: "02. Without prejudice, I have no objection in the documents produced by me in the sealed cover during the hearing dated 28.04.2026, in relation to the amounts shown as debts and Creditors/Vendors/Decree Holders, whose names are mentioned in Paragraph Nos.3, 4, 5 & 6 of the Affidavit dated 27.04.2026 be forwarded to the Learned Observers / Overseers for ensuring the correctness / truthfulness of the amounts mentioned in the aforesaid Affidavit.

¶03I submit that, in case any clarifications is needed/sought by the Learned Observers/Overseers, I may be permitted to place such further or other documents and materials before the Learned Observers/Overseers, as may be required, to establish the correctness/truthfulness of the amounts mentioned in the aforesaid Affidavit.

¶04I submit that, the Learned Observers/Overseers shall release, from and out of the designated Bank Account opened by the 4th Respondent, amounts as he finds payable towards debts of the 4th Respondent, arising out of the movie Page7 of 10 "Dhruva Natchathiram", to the persons referred to in the aforesaid Affidavit.

¶05I submit that, the Learned Observers/Overseers be directed to complete the aforesaid exercise within a period of 10 days, from the date of this order to be passed by this Hon'ble Court in this regard. "

¶6Mr. T.R.Rajagopalan, learned Senior Counsel, submits that the Original Applicants cannot re-argue O.A.No.283 of 2023 in the guise of an application for modification. He submits that no modification is necessary in respect of order dated 30.04.2026.

¶7In the operative paragraph of order dated 30.04.2026, it was recorded at clauses (iii) and (v) thereof that all debits from the dedicated account shall be made with the prior consent of the observers/overseers. Since objections have been raised with regard to the veracity of amounts specified as payable to the creditors in the affidavit of Mr.Gautham Vasudev Menon, I am of the view that a limited modification is warranted by directing the observers/overseers to examine documents relating to the loans/advances received from said creditors so as to verify and confirm that amounts stated to be payable to them are indeed payable. All necessary documents in this regard shall be provided to the observers by respondents 2 to 4. Said verification shall be carried out and Page8 of 10 completed within a maximum period of 15 days from today. Debits shall be permitted only to the extent the amounts are found to be correct. The observers are granted leave to apply to Court in case any clarification is required.

¶8Said order dated 30.04.2026 also directed the fourth respondent to release the movie on or before 15.06.2026. Respondents 2 to 4 have requested for an extension of this time limit on the ground that the movie could not be released before the earlier scheduled date in spite of the exercise of best efforts. After examining the reasons set out in the affidavit in support of said application for extension and being satisfied that sufficient cause is shown, the time limit for release of the movie is extended up to 31.07.2026. These three applications are disposed of on these terms. 30-06-2026 KJ Page9 of 10 SENTHILKUMAR RAMAMOORTHY J. KJ Arb Appln Nos. 1244 & 1245 of 2026 and Application No.2438 of 2026 in O.A.No.283 of 2023 30-06-2026 Page10 of 10