AXESS SEVEN Vs. SILVER LINE FILM FACTOR
LAWS(MAD)-2018-1-50
HIGH COURT OF MADRAS
Decided on January 17,2018

Axess Seven Appellant
VERSUS
Silver Line Film Factor Respondents

JUDGEMENT

R. Subramanian, J. - (1.)The suit has been filed to recover a sum of Rs.33,10,000/-, due and payable on the finance agreement dated 01.02.2010, entered into between the plaintiff and defendants.
(2.)The brief averments of the plaint are as follows :-
The first defendant, who is the film producer had approached the plaintiff seeking financial assistance for the movie titled "Singam Puli". The plaintiff, who is engaged in manufacturing and sale of electronic goods, had agreed to advance the money to the tune of Rs.30,00,000/- and in fact they entered into a finance agreement on 01.02.2010, in and by which, the plaintiff agreed to advance a sum of Rs.30,00,000/- to the first defendant. The first defendant agreed to pay interest at the rate of 36% per annum towards principal amount. He also had agreed to pay a sum of Rs.90,000/- per month towards interest and the first defendant had undertaken to repay the entire amount before March, 2010 or before the general release of the above said film, which ever is earlier. In order to secure the right of the plaintiff, the first defendant had issued a letter of undertaking not to release the picture in Chennai city area till the loan due is paid to the plaintiff. However, since the first defendant attempted to release the picture without paying the plaintiff, the plaintiff requested the first defendant to pay the money. The first defendant has paid a sum of Rs.5,00,000/- by way of Demand Draft on 21.10.2010 and had issued four cheques for total sum of Rs.30,00,000/- and the details are as follows :-
JUDGEMENT_50_LAWS(MAD)1_2018_1.html
(3.)When the plaintiff presented the above cheques, they were dishonoured and returned with an endorsement "Stopped by drawer" and "Insufficient funds". Hence the plaintiff, after deducting a sum of Rs.5,00,000/- by way of demand draft paid on 21.10.2010, laid the present suit for recovery of Rs.33,10,000/- (Rupees thirty three lakhs ten thousand only).


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