The Madras High Court has directed actor and film producer Vishal to deposit a sum of Rs 15 crores in connection to a civil suit moved by Lyca Productions.
The production company moved the suit to recover Rs 21.29 crores and also sought to halt the release of the actor’s recent release Veeramae Vaagai Soodum on OTT platforms, until the matter is resolved.
Lyca filed the suit with respect to a loan agreement from September 21, 2019, between them and Vishal’s production company Vishal Film Factory. The agreement mentioned that the loan was first availed by Vishal from Gopuram films run by Anbu Chezhian. While he was the first lender, Lyca had subsequently taken over the loan.
At present, Lyca stated that Vishal had agreed to pay Rs 21.29 crores. Further, the production house could claim all rights, titles and interests of all future film projects of Vishal until the loan is fully discharged, as per the agreement. This was included in the contract for the purpose of security.
With the actor failing to honour the agreement, Lyca Productions approached the Madras High Court.
The directions were given by Justice Senthilkumar Ramamoorthy who said, “For interlocutory purposes, even if one proceeds on the assumption that the assertion of the respondent is correct, the respondent should at least provide security to the extent of Rs 15 crores.”
Observing that Vishal is the sole proprietor of Vishal Film Factory, the court has directed him to pay 15 crores by establishing an interest-bearing fixed deposit at a nationalised bank for one year. The deposit should be created in the span of three weeks and it will be renewed until the disposal of the suit.
Upon the establishment of the FD, the receipt is to be deposited with the Registrar-General and a copy will be provided to Lyca Productions. The company has also been permitted to submit additional documents subject to any objections by Vishal. The actor has been permitted to file a statement of admission or denial, with respect to these additional documents within two weeks.
The matter has been posted for further hearing on March 22.