Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2013 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 439 - HC - Companies LawArbitration and Conciliation - petitioner seeks to challenge an order passed by the learned arbitrator granting interim measures in favour of the respondents under Section 17 of the Arbitration Act 1996. Some of relevant facts for the purpose of deciding this petition are as under. - The petitioner entered into a Coproduction Agreement for remake of the said film 'Zanjeer' with Flying Turtle Films (FTF) and started working on the script of the remake at the end of December 2011, the respondents learned about the said agreement between the petitioner and M/s FTF. It is the case of the respondents that on 24th January 2012, the respondents finally agreed to license of remake rights to Amit Mehra and entered into an agreement with the petitioner, granting the petitioner the right to 'remake' the film 'Zanjeer' in Hindi and Telugu. The writers of the said film Mr Salim Khan and Mr Javed Akhtar were claiming Copyrights in the said film. The petitioner requested the respondents to provide to the petitioner with the agreements with the said writers with PMP for the original 'Zanjeer' for the petitioner to understand their claims.. The petitioner made it clear that it would not pay next installment till the documents were provided by the respondents. The first question that arises for consideration of this court is whether under the provisions of Copyrights Act 1957, there is a separate copyright for cinematography film and literary work and what is the effect thereof on the subject matter of this dispute. The respondents addressed to the petitioner that due date for third installment to be paid by the petitioner to the respondents was 23rd May 2012, however, the petitioner had issued a letter interalia raising flimsy ground for non payment of third installment and the respondents were to terminate the said agreement. Respondents stated that from the date of the said notice all the rights in the said film stood revered back to PMP including the right to remake the said film and no rights for the said film existed with the petitioner. The said notice was issued by the respondents without prejudice to their other rights and remedies in law. The respondents filed petition under Section 9 of the Arbitration and Conciliation Act 1996 in this Court for temporary injunction and succeeded. The learned sole arbitrator disposed of the said application under Section 17 of the Arbitration and Conciliation Act 1996 and if the petitioner herein is restrained from proceeding with the remake, and ultimately the petitioner succeeds, it can still proceed with the remake and complete it and if it suffers loss because of the interim injunction, the same can be compensated in terms of money. Being aggrieved by the said order passed by the learned arbitrator, petitioner filed this petition under Section 37 of the Arbitration Act 1996. Held that - It is not in dispute that claims made by the writers before the association against the petitioner as well as respondents is pending which is for a large amount. The respondents have not even produced the document of title in respect of copyrights in the literary work till today. In the event of the writers succeeding in their claim against the petitioner and the respondents in respect of their alleged copyright in the screenplay of the original film, that would affect the consideration amount agreed to be paid by the petitioner to the respondents. The consideration thus agreed, would have to be modified and/or appropriate adjustments would have to be made while considering the claims of the parties in arbitration. It is made clear that this Court has not expressed any views on the correctness of the claims made by the writers in respect of alleged copyrights in their favour in this order. It is also made clear that observations made by this Court in this order regarding termination and/or representation of title or regarding merits of the matter are all tentative. The learned arbitrator shall decide the matter on merits and in accordance with law without being influenced by the findings and/or observations made by the learned arbitrator in the impugned order and by this Court in this order. I, accordingly pass the following order. The impugned order passed by the learned arbitrator granting interim measures in favour of the respondents is set aside. Application u/s 17 of Act is rejected. During the pendency of arbitration proceedings, the petitioner would be at liberty to proceed with remaking of the film 'Zanjeer' and to release the said movie on the condition that petitioner deposits the balance installment agreed to be paid in terms of Clause 2.2 within eight weeks from today. It is made clear that release of the said film would be subject to the final outcome of the arbitration proceedings which are pending before the learned arbitrator.
|