Vishal Film Factory, owned by actor Vishal, received a loan from Gopuram Films. Laika accepted this loan amount and entered into an agreement with Vishal. Vishal’s company agreed to give the rights to the films as security for the loan amount.
Subsequently, Lyca filed a case in the High Court seeking an injunction against Vishal’s company from releasing the film ‘Veerame Vagai Choodum’ without paying the 21.29 crore rupees owed to them.
Meanwhile, since the film has been released, another petition has been filed in the court seeking payment of the revenue from the screening of the film.
The single judge of the High Court, who heard the case, said that on the part of Vishal’s company, only 15 crores of rupees were taken from Gopuram Films. In the name of the Registrar General of the High Court, the Vishal company should pay a fixed deposit of 15 crore rupees in the National Bank and the receipt should be given to the Registrar General.
Against this order, an appeal was filed by Vishal in the High Court. The petition came up for hearing before a ‘First Bench’ comprising of Chief Justice T. Raja and Justice Bharatha Chakraborty.
The First Bench upheld the order of the learned Single Judge holding that the appeal lacked merit. Failing to comply with the order of the single judge, Vishal Film Factory was barred from releasing films produced by any medium.