The Madras High Court has issued an order prohibiting Studio Green from releasing the film ‘Kanguva‘, starring Dravidianist actor Suriya, unless it pays ₹20 crore to the official assignee appointed by the court.
A division bench consisting of Justice G Jayachandran and Justice CV Karthikeyan directed KE Gnanavel Raja, representing Studio Green, to pay the decreed amount by 13 November 2024 to allow the film’s release on the scheduled date.
The official assignee claimed that Gnanavel Raja had failed to pay the ₹ one crore ordered by the court earlier and filed a petition to modify the order, allowing Studio Green to release ‘Kanguva’ upon payment of the fixed amount.
When the matter was brought before the court, Studio Green’s counsel stated that the ₹1 crore had been paid just moments earlier, a statement that the assignee’s counsel acknowledged.
However, the assignee’s counsel argued that Gnanavel Raja was misleading the court by presenting an image of financial incapacity, despite having deposited ₹100 crore with Reliance Entertainment in a separate case.
The counsel for Studio Green, Niranjan Rajagopalan, countered that any delay in the film’s release would harm all parties, including the assignee, as it would lead to lost revenue and further complications in settling the decree.
The assignee’s counsel objected, stating that Gnanavel Raja had been stalling the issue for five years, repeatedly seeking orders to release Studio Green’s films without fulfilling the court’s order to pay the decree amount.
The official assignee had been tasked by the court to recover debts owed by Arjunlal Sunderdas, who was declared an insolvent businessman. Sunderdas had been accused of defrauding investors out of crores of rupees through his ventures in finance, real estate, and other industries.
Sunderdas had also partnered with Gnanavel Raja in 2011 to produce a film, investing ₹40 crore in the project. While Sunderdas paid over ₹12 crore by 2012, the film was abandoned midway due to financial difficulties. Studio Green, having invested all the funds in the project, was unable to repay Sunderdas, who eventually was declared insolvent.
Although the production house repaid ₹2 crore, the official assignee sought an order from the High Court for Studio Green to pay the remaining ₹10 crore, along with 18% annual interest from 2013.
Gnanavel Raja objected, claiming he had transferred the Hindi remake rights of three Tamil films to Sunderdas as part of the settlement for the investment. In 2019, a division bench of the High Court ruled in favor of the assignee, directing Gnanavel Raja to deposit ₹10.35 crore, including interest. Since this order was not complied with, the official assignee filed a new petition seeking to attach all future films produced by Studio Green, including ‘Kanguva’.
(With Inputs From DT Next)
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