The loan agreement between Vishal and Lyca guarantees that the latter will hold the rights to all of Vishal’s films until full repayment of the loan.
Vishal had to repay Anbu Chezhiyan of Gopuram films a loan of ₹21.29 crore which was accepted and repaid by Lyca.
Actor and producer Vishal Krishna Reddy, the sole proprietor of Vishal Film Factory, has been ordered by the Madras High Court to deposit ₹15 crores in a nationalised bank to the credit of a civil complaint filed against him by Lyca Productions Private Limited. On hearing Lyca Productions’ petition, Justice Senthilkumar Ramamoorthy granted the injunction. The petitioner asked the court to order Vishal to deposit all funds collected or due to him in connection with the film Veeramae Vaagai Soodum to the suit’s credit. The litigation was brought to recoup a loan of ₹21.29 crore from the petitioner to the respondent, as well as interest.
Vishal had to repay Anbu Chezhiyan of Gopuram films a loan of ₹21.29 crore. Subsequently, the loan was accepted and repaid by Lyca. The loan agreement between Vishal and Lyca guarantees that the latter will hold the rights to all of Vishal’s films until full repayment of the loan.
The petitioner further claimed that the respondent, who is the producer of Veerame Vaagai Soodum under his label Vishal Film Factory, released the film on his own, in violation of the agreement, and that he is obligated to repay the loan and that the film should not be released on OTT. Hence, Lyca filed a case in the Chennai High Court seeking an injunction restraining the release of the film Veerame Vaagai Soodum in other languages and the sale of satellite and OTT rights without paying them ₹21.29 crore.
After hearing the arguments, the judge ordered Vishal to open an interest-bearing fixed deposit account in the name of the Registrar General, Madras High Court, for ₹15 crores to the credit of the suit within three weeks. The judge stated, “Such fixed deposit shall be for an initial period of one year, and should be renewed until the suit is resolved.” The High Court adjourned the hearing till March 22.
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