There was an out-of-court settlement between the producer and the financiers.
The Madras High Court today lifted its interim stay on the release of Amitabh Bachchan starrer Aarakshan, following an out-of-court settlement between the producer and the financiers.
Justice V Periya Karuppiah had issued an injunction restraining producer Firoz A Nadiadwala from screening the film on a civil suit filed by financiers Sushil Gupta, director of GG Photo Limited, and Madhu Gupta, who claimed that they had given Rs3.25 crore to the producer on October 5, 2010 as advance and were yet to recover the amount.
The judge had issued the interim order yesterday staying the worldwide release of the movie, a co-production by Prakash Jha and Firoz A Nadiadwala on August 12, till the amount was paid.
In the civil suit, the plaintiffs had said GG Photos provided Rs2 crore to Base Industries, represented by Nadiadwala, while Madhu Gupta advanced Rs1.25 crore on various dates. The producer had entered into an agreement on October 5 with the Guptas and had confirmed receipt of total sum of Rs3.25 crore.
The suit claimed that forged cheques had been issued for an amount of Rs3.71 crore which included the interest. However, the cheques were returned unpaid.
It said the producer had undertaken that he would repay the entire dues before the release of any of his forthcoming films but they have completed production of Aarakashan, and are releasing it now on August 12.
The case was filed urgently for recovery of dues because if the producer went ahead with releasing the film, they will not be able to recover their money thereafter.
The cause of action for the suit arose partly at Mumbai and partly in Chennai as payments were made in both the cities by the producer.
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