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Madras High CourtCS/485/2008disposed of

M/S.Shri Balaji Enterprises v. M/S.Sri Surya Movies Amp2 Others

2019-11-04Honourable Mr Justice N. Sathish Kumar12 pages

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated :04.11.2019 Coram The Honourable Mr.Justice N.SATHISH KUMAR M/s.Shri Balaji Enterprises Represented its Proprietor Me.Sanjay A.Wadhwa S/o. Late Arjundas Pokardas Old No.80, New No.42, New Avadi Road, Kilpauk Chennai 10.

...Plaintiff

Versus

1.M/s.Sri Surya Movies Rep by its Proprietor Mr.A.M.Rathnam No.1, Vellavan Street, West Kamakotti Nagar, Valasarawakkam, Chennai 600 087.

2.Ayyappan (Deceased) Proprietor: Yokesh Movie Makers, No.9/7, Soundarrajan street, T.Nagar, Chennai 600 017.

3.Prasad Film Laboratories Rep by its Managing Director, No.58, Arunachalam Road, Saligramam, Chennai 600 093.

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4.Panchammal, 5.Mani Bharathi 6.Karuppusamy ...Defendants (Defendants 4 to 6 are brought on record as legal heirs of the deceased second defendant as per order dated 04.06.2018 in A.Nos.7082 to 7084 of 2018) This Civil Suit is filed under Section 55 and 62 of the Indian Copyright Act, 1957 read with Order IV Rule 1 and 2 of Original Side Rules, prayed (a) for a permanent injunction restraining defendants 1 and 2, their men, agents, servants, representatives or any body claiming through, by or under them from in any manner infringing the Surface Transport copyrights of the plaintiff in respect of the suit schedule films in VCD, DVD formats either by dealing with the said rights or exploiting the same in any other manner, whatsoever;

(b) cost of the suit.

For Plaintiff : M.Gautham S.Raman for Mr.C.Seethapathy For Defendants : Defendants 1,3,4 to 6 are set exparte.

D2 died.

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J U D G M E N T

The suit has been filed for the following reliefs: (a) for a permanent injunction restraining defendants 1 and 2, their men, agents, servants, representatives or any body claiming through, by or under them from in any manner infringing the Surface Transport copyrights of the plaintiff in respect of the suit schedule films in VCD, DVD formats either by dealing with the said rights or exploiting the same in any other manner, whatsoever;

(b) cost of the suit.

2. The case of the plaintiff is that the plaintiff firm was originally formed by Mr.Arjundas Pokardas, who was a sole proprietor. The plaintiff is doing the business, inter alia, of acquiring and distribution of satellite TV video copyrights and other cinematograph copyrights. The plaintiff's proprietor, Mr.Arjundas Pokardas was approached by the first defendant who is a producer and the first defendant sought financial assistance. The plaintiff 3/12

had agreed to pay the first defendant for his production of various Tamil films viz., Run, Boys, Enakku 20 Unakku 18, Gilli, Kovil, 7-G, Rainbow Colony, Ponniyan Selvan and finance agreements were also entered into between them. The securities for the aforesaid agreements were the Satellite TV rights and other rights backed up by lab letters specifying the VCD/DVD rights, Airbone, Surface Transport, Internet rights etc. The plaintiff further submits that, later on, the first defendant had given letter to the plaintiff requesting relinquishment of the security in lieu of granting distribution rights of the aforesaid films to the plaintiff for VCD and DVD format in India on a sole, exclusive, absolute and irrevocable basis for a perpetual period from the date of the said letter in lieu of the repayment of dues. The details of these seven letters are as follows:

i) Date of Finance Agreement : 04.09.2002 Request letter for relinquishment dated 30.09.2002 Lab letter dated:30.09.2002 for the film RUN ii) Date of Finance Agreement : 16.11.2002 Request letter for relinquishment dated 15.04.2003 Lab letter dated:15.04.2003 for the film BOYS 4/12

iii) Date of Finance Agreement :10.01.2003 Request letter for relinquishment dated 16.01.2004 Lab letter dated:16.01.2004 for the film ENAKKU 20 UNAKKU 18 iv) Date of Finance Agreement : 09.07.2003 Request letter for relinquishment dated 05.04.2004 Lab letter dated:05.04.2004 for the film GILLI v) Date of Finance Agreement : 27.08.2003 Request letter for relinquishment dated 16.01.2004 Lab letter dated:16.01.2004 for the film KOVIL vi) Date of Finance Agreement : 31.01.2004 Request letter for relinquishment dated 07.01.2005 Lab letter dated:07.01.2005 for the film 7G RAINBOW COLONY vii) Date of Finance Agreement : 29.01.2005 Lab letter dated:23.08.2006 for the film PONNIYAN SELVAN

3. The third defendant has sent a letter to the plaintiff acknowledging the rights of the plaintiff referring to the assignment letters from the first defendant in respect of distribution rights of 5/12

the aforesaid seven films and confirmed the availability of negatives for taking delivery by the plaintiff on payment of necessary charges to the lab. Thereafter, on 04.03.2008, the plaintiff shocked was to see the public notice issued by the second defendant stating that he has acquired the transport rights (through VCD, DVD formats) of the schedule films from the first defendant. Hence, the suit has been filed.

4. The second defendant has filed the written statement stating that the suit is not maintainable. The second defendant is a bonafide purchaser and he does not have knowledge about the alleged agreement between plaintiff and first defendant entered on 23.08.2006, at the time of agreement entered by the second defendant with one Murugesan dated 22.02.2008. The second defendant enquired the first defendant regarding the transport right to the said 26 movies and thereafter the second respondent entered into the agreement. With ulterior motive, the plaintiff and the first defendant colluded together on the basis of the alleged agreement dated 23.08.2006 and filed the present suit against the 6/12

second defendant.

5. This Court, upon perusal of the pleadings, plaint and written statement framed the following issues:- "1. Whether the plaintiff is the sole and absolute owner of the copyright including DVD, VCD, HD DVD, Transportation rights, etc. over the suit schedule films?

2. Whether the defendants 1 and 2 are guilty of infringement of the plaintiff's copyright over the suit schedule films?

3. To what reliefs are the parties entitled to?"

6. Heard the learned counsel for the plaintiff and perused the materials.

7. Subsequently, the plaintiff was examined as P.W.1 and the following documents were marked as Exs.P1 to 40: 7/12

Exhibits Date Description of Documents Ex-P1 04.09.2002 The finance agreement between plaintiff and the first defendant for the film RUN Ex-P2 30.09.2002 The letter from the first defendant requesting to relinquish Satellite TV.

Ex-P3 30.09.2002 The lab letters issued by first defendant to third defendant.

Ex-P4 05.12.2006 The confirmation letter issued by the third defendant to plaintiff for the film RUN.

Ex-P5 16.11.2002 The finance agreement between plaintiff and first defendant for the film BOYS.

Ex-P6 16.11.2002 The lab letter by first defendant for the film BOYS reg. Grant of World Satellite TV rights.

Ex-P7 15.03.2003 The letter from first defendant requesting to relinquish Satellite TV rights.

Ex-P8 15.04.2003 The lab letter issued by the first defendant to third defendant.

Ex-P9 05.12.2006 The confirmation letter issued by the third defendant to plaintiff for the fil BOYS.

Ex-P10 10.01.2003 The finance agreement between plaintiff and the first defendant for the film ENAKKU 20 UNAKKU 18.

Ex-P11 10.01.2003 The lab letter by first defendant requesting for the above film reg. Grant of World Satellite TV rights.

Ex-P12 16.01.2004 The letter from the first defendant requesting Satellite TV rights.

Ex-P13 16.01.2004 The lab letter issued by first defendant to third defendant.

Ex-P14 05.12.2006 The confirmation letter issued by third defendant to plaintiff for the film ENAKKU 20 UNAKKU 18.

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Exhibits Date Description of Documents Ex-P15 09.07.2003 The finance agreement between plaintiff and first defendant for the film GILLI Ex-P16 07.07.2003 The lab letter from the first defendant for the film GILLI reg. Grant of World Satellite TV rights.

Ex-P17 31.01.2004 The letter confirming the loan obtaining by first defendant.

Ex-P18 05.04.2004 The letter from first defendant requesting to relinquishing satellite TV rights.

Ex-P19 05.04.2004 The lab letters issued by first defendant to third defendant.

Ex-P20 04.12.2006 The confirmation letter issued by third defendant to plaintiff for the film GILLI.

Ex-P21 27.08.2003 The finance agreement between plaintiff and the first defendant for the film KOVIL.

Ex-P22 27.08.2003 The lab letter from the first defendant for the film KOVIL reg. Grant of World Satellite TV rights.

Ex-P23 16.01.2004 The letter from first defendant requesting to relinquishing satellite TV rights.

Ex-P24 16.01.2004 The lab letters issued by first defendant to third defendant.

Ex-P25 04.12.2006 The confirmation letter issued by third defendant to plaintiff for the film KOVIL.

Ex-P26 31.01.2004 The finance agreement between plaintiff and the first defendant for the film 7G RAINBOW COLONY.

Ex-P27 31.01.2004 The lab letter from the first defendant for the film 7G RAINBOW COLONY reg. Grant of World Satellite TV rights.

Ex-P28 07.01.2005 The letter from first defendant requesting to 9/12

Exhibits Date Description of Documents relinquishing satellite TV rights.

Ex-P29 07.01.2005 The lab letters issued by first defendant to third defendant.

Ex-P30 03.02.2004 The confirmation letter issued by third defendant to plaintiff for the film 7G RAINBOW COLONY.

Ex-P31 29.01.2005 The finance agreement between plaintiff and the first defendant for the film PONNIYAN SELVAN.

Ex-P32 29.01.2005 The lab letter from the first defendant for the film PONNIYAN SELVAN reg. Grant of World Satellite TV rights.

Ex-P33 04.12.2006 The confirmation letter issued by third defendant to plaintiff for the film PONNIYAN SELVAN.

Ex-P34 23.08.2006 The assignment agreement between plaintiff and first defendant.

Ex-P35 04.03.2008 The publication given by second defendant in Daily Thanthi.

Ex-P36 04.03.2008 The certificate true copy of the telegram issued by plaintiff to second defendant .

Ex-P37 02.04.2008 The reply from second defendant.

Ex-P38 20.03.2008 Original Death Certificate of PW1's father Ex-P39 31.03.2008 The true copy of Legal Heirship Certificate of PW1's father attested by Tahsildar Ex-P40 15.04.2008 The affidavit executed by PW1's two sister and mother

8. Ex.P1 is the finance agreement between plaintiff and the 10/12

first defendant for the film RUN dated 0409.2002. Ex.P2 is the letter from first defendant requesting to relinquish Satellite TV dated 30.09.2002. Ex.P3 is the lab letters issued by first defendant to third defendant dated 30.09.2002 and Ex.P4 is the confirmation letter issued by third defendant dated 30.09.2002. Exs.P5 to P34 makes it clear that the plaintiff not only acquired right in the assignment agreement there were also official agreement entered into between first defendant and the proprietor. The letters sent by the Laboratories to the plaintiff also indicates that the rights are vested with the plaintiff. P.W.1 deposed about the nature of the transaction entered to acquire the rights over the films. Evidence of P.W.1 and documents adduced remain unchallenged.

9. From the above documents, the plaintiff has proved his claim. Accordingly, the suit is decreed as prayed for. 04.11.2019 Index : Yes/No rst 11/12

N.SATHISH KUMAR , J., rst 04.11.2019 12/12