Kochadayan film failure to repay loan: SC fiat to Latha Rajini to pay Rs 6.20 cr dues
New Delhi: The Supreme Court on Monday asked Latha Rajinikanth, wife of actor Rajinikanth, to pay the dues of Rs 6.20 crore to Ad Bureau, which had given Rs 10 crore loan for the production of the film Kochadaiyan directed by her daughter Soundarya Rajinikanth.
A Bench of Justices Ranjan Gogoi and Ms. R. Banumathi passed this order on an appeal filed by Ad Burau against a Karnataka high court judgment quashing the criminal proceedings against Ms. Latha Rajinikanth and her daughter.
The dispute dates back to 2014 when a financial dispute arose during the production of the film. Ms. Latha had sold the post-production work of the film in which the petitioner was given exclusive distribution rights for Tamil Nadu, providing for 12 per cent pre-release guaranteed profit by Ms. Latha.
On February 20 the Bench had passed an order stating that within three months if the Company-Mediaone Global Entertainment Limited does not pay the balance dues, the respondent-accused (Latha Rajinikanth) has undertaken before the Court to pay the amount due.
On Monday the court asked senior counsel Ranjit Kumar, appearing for the applicant - M/s Mediaone Global Entertainment Ltd. as to whether the applicant is agreeable to pay the balance due i.e. an amount of Rs 10 crore in terms of the order of this court dated 20th February, 2018.
Mr. Ranjit Kumar, in his reply submitted that according to the applicant, the balance amount due is Rs 80 lakh as amount of '9.20 crore has already been paid.
In a brief order, the bench said “in view of the aforesaid statement we do not consider it necessary to implead the applicant - M/s Mediaone Global Entertainment Ltd. as a party to the present proceedings as in view of the order dated 20th February, 2018 the liability will now be cast on the respondent – accused (Latha Rajinikanth) to pay the aforesaid amount of Rs. 10 crore in terms of the undertaking furnished to the Court.”
The court while dismissing the company’s impleadment granted time till July 3 for making the payment and directed the matter to be listed on July 3.
In this case as Ms. Latha failed the honour the payment, a complaint was filed in Ulsoor police station in Bengaluru for recovery of the amount due and even as this case was pending before a Magistrate, the Karnataka High Court quashed the proceedings. The present appeal by Ad Bureau is directed against this judgment.
Counsel for Ad Bureau submitted that out of the total dues of Rs 14.90 crores, a sum of Rs 8.70 crores had been received and a balance of Rs 6.20 cr with interest was due from Ms. Latha.
Counsel for Ms. Latha conceded that they are liable as guarantor, but wanted the court to pass an order directing the company to settle the amount of Rs 6.20 crores with interest in 12 weeks, failing which Ms. Latha would pay.
