Cine 1 Studios, a co-producer of the Bollywood film ‘Animal,’ has approached the Delhi High Court, seeking a stay on its release on Over-The-Top (OTT) platforms, digital streaming platforms, and its satellite broadcast. The movie, directed by Sandeep Reddy Vanga, premiered in theaters on December 1, 2023, and is scheduled to be released on Netflix, an OTT platform, on January 26, 2024.
Cine 1 Studios Pvt Ltd alleges a breach of agreement, claiming that it has not received any payment. On the other hand, the defendant and co-producer, Super Cassettes Industries Pvt Ltd, contends that Rs 2.6 crore was paid to the plaintiff, which was not disclosed to the court.
Justice Sanjeev Narula examined the document presented by the defendant regarding the payment of Rs 2.6 crore to the plaintiff. When questioned about the claimed payment, the counsel for Cine 1 Studios expressed unawareness as the document was not brought to his notice. The lawyer assured the court that he would consult with his client and provide the necessary information.
The court was informed that the plaintiff’s counsel would ensure the presence of the authorized signatory of Cine 1 Studios, Murad Khetani, before it on January 18, the next date of the hearing.
Senior advocate Sandeep Sethi, representing Cine 1 Studios, argued that the plaintiff had not received information about the film’s revenue, box office collections, music, or rights for satellite or internet distribution. He claimed that Super Cassettes had collected all the money but failed to pay any amount to Cine 1 Studios, despite the profit-sharing agreement.
The plaintiff’s complaint stated that the two production houses had entered into an agreement to produce the film. According to Cine 1, it had a 35 per cent profit share and was entitled to 35 per cent intellectual property rights under the agreement.
The complaint alleged that Super Cassettes incurred expenses and received revenues without Cine 1’s approval, violating the profit-sharing agreement. It also claimed that Super Cassettes did not pay any money to the plaintiff.
Senior advocate Amit Sibal, representing Super Cassettes, countered that the plaintiff had not invested any money in the film, and all expenses were covered by his client. He informed the judge of a document signed between the parties, asserting that the plaintiff had relinquished all its intellectual property rights in the film on August 2, 2022, for a consideration of Rs 2.6 crore.
Sibal contended that this critical information was concealed from the court in the amended agreement, where the clause granting 35 per cent of intellectual property rights was deleted.
