Leadit India Private Limited v. Goldmines Telefilms Private Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION INTERIM APPLICATION NO. 778 OF 2025 IN COMMERCIAL ARBITRATION PETITION NO. 126 OF 2025 Leadit India Private Limited ...Applicant

Versus

Goldmines Telefilms Private Limited

...Respondent

Mr. Kevick Setalvad, Senior Advocate, a/w Harshavardhan Abburi, Virgil Braganza, for the Applicant.

Mr. Karl Tamboly, a/w Drshika Hemnani, Prapti Bhadra, i/b Jhangiani, Narula & Associates, for Respondent.

CORAM

: SOMASEKHAR SUNDARESAN, J.

DATE : OCTOBER 1, 2025 ORDER :

1.

This Interim Application seeks a stay on the execution of the impugned award dated July 10, 2024 whereby the Petitioner has been directed to pay over a sum of Rs.12.25 crores after deducting from it, a sum of Rs.1.2 crores in respect of Goods and Service Tax ("GST"). The disputes and differences between the parties relate to a Deed of Transfer of Ownership to copyright dated February 15, 2019 by which, the Telugu movie titled Disco Raja produced by Respondent was meant to be transferred to the Petitioner with sole and exclusive dubbing rights in Digitally signed by ASHWINI JANARDAN VALLAKATI Date:

2025.10.06 17:20:36 +0530 ASHWINI JANARDAN VALLAKATI Hindi and other Noth-Indian languages.

2.

Disputes and differences arose between the parties over the quality of the film content provided by the Petitioner to the Respondent. It is common ground that the movie was never dubbed in Hindi or any other language by the Petitioner.

3.

The Learned Arbitrator has held that the case for specific performance has not been made out and that instead, the Petitioner has breached the terms of the Transfer Deed. Therefore, the award essentially restitutes the parties to the position prior to the execution of a Deed with an adjustment of Rs.1.2 crores payable to the Petitioner in respect of dues under the GST.

4.

In these circumstances, Learned Senior Counsel for the Petitioner submits that the award is diametrically contrary to the contract and patently illegal inasmuch as the only termination envisaged in the contract was termination at the behest of the Petitioner. In other words, the case is that the Respondent could have never terminated the contract. The Learned Arbitrator has, on evidence, found otherwise and stated that if circumstances for breach of contract leading to termination are made out, it would be open to a party to the contract to terminate the contract.

5.

Having heard the parties, these are facets of final hearing which would be gone into when the Section 34 Petition is heard. On the face of it, there is nothing so perverse or acutely wrong with the arbitral award that the deposit does not follow as a matter of course. After adjusting a sum of Rs. 1.2 crores from the consideration value of Rs.12.25 crores, the principal sum awarded works out to Rs.11.05 crores, and the arbitrator has awarded 9% per annum by way of simple interest. If the awarded amount along with interest computed until today i.e. October 1, 2025 is deposited with this Court within a period eight weeks from the date of upload of this order, execution of the arbitral award shall remain stayed.

6.

The other ground is that the case for damages made out by the Respondent has been rejected and once the case for damages is rejected, the arbitral award would never have ordered a refund. I am unable to agree on a prima facie basis since it is possible that the arbitrator felt that since the parties have not acted upon the contract, they are to be restituted to their respective positions as existing prior to the contract, without any damages being awarded to either party. 7.

Be that as it may, all observations in this order are purely prima facie with a view to consider whether a deposit should be

directed. Satisfied that perversity and illegality as alleged is not of a nature that excuses even a deposit, this order has been passed. 8.

Interim Application is finally disposed of.

9.

All actions required to be taken pursuant to this order shall be taken upon receipt of a downloaded copy as available on this Court's website.

[ SOMASEKHAR SUNDARESAN, J.]