In a landmark decision that paves the way for a highly anticipated cinematic release, the Madras High Court on Wednesday, August 14, 2024, gave the green light for the worldwide theatrical release of “Thangalaan,” the much-awaited movie starring ‘Chiyaan’ Vikram. This ruling came only after the film’s producer, K.E. Gnanavelraja, complied with a crucial court order to deposit ₹1 crore with the Official Assignee of the High Court.
The courtroom was abuzz as a Division Bench composed of Justices G. Jayachandran and C.V. Karthikeyan confirmed the submission from the producer’s counsel, Niranjan Rajagopal, stating that the money had been duly transferred. This crucial compliance cleared the last major obstacle, guaranteeing the film’s global release on Thursday, August 15, 2024.
This legal saga traces its roots back to 2011, centered around an agreement between K.E. Gnanavelraja and the now-deceased businessman, Arjunlal Sunderdas. The partnership was initially set to co-produce a movie, with each party agreeing to invest ₹40 crore. Despite Sunderdas contributing ₹12.85 crore, the venture faltered midway due to financial constraints, resulting in his withdrawal.
Compounding the issue further was Sunderdas’s insolvency declaration by the High Court in 2014. The court mandated that all his remaining assets and liabilities be managed by the Official Assignee.
. This move aimed to reimburse hundreds of individuals who had invested in Sunderdas’s various real estate and finance companies but were left high and dry due to his financial collapse.
Upon detailed scrutiny, it was revealed that Gnanavelraja had an outstanding debt of ₹10.35 crore owed to the insolvent Sunderdas. As a result, the Official Assignee filed an application in 2016, urging the High Court to order the producer to repay the amount with an 18% interest rate, retroactive from 2013.
In 2019, the Division Bench upheld this application, instructing the producer to settle the financial obligation with interest. However, the compliance with this order by Gnanavelraja was inconsistent, prompting the Official Assignee to petition the High Court before the release of every subsequent movie he produced. This periodic legal pressure often resulted in court mandates requiring deposits ranging from ₹50 lakh to ₹1 crore prior to any movie release.
Fast forward to this year, the legal wrangling took center stage once more when the Official Assignee filed an execution petition to attach two new movies from Gnanavelraja’s Studio Green: the eagerly awaited “Thangalaan” and “Kanguva,” which stars actor Suriya and is slated for an October release. The execution petition aimed to restrict the release of these films until the producer met the financial obligations penned down by the High Court.
On Monday, the High Court handed down an order stating that both movies would only be allowed to release if Gnanavelraja deposited ₹1 crore for each film. Following this directive, the producer moved swiftly, filing a compliance report regarding “Thangalaan” on Wednesday, thereby securing permission for its global release.
The financial intricacies and the legal back-and-forth add layers to the mounting excitement around “Thangalaan.” The film, starring the versatile ‘Chiyaan’ Vikram, is already touted as one of the year’s biggest releases, but its journey to the big screen has been anything but smooth. From financial commitments, legal hurdles, to courtroom deadlines, the comprehensive effort to settle outstanding debts in compliance with court orders signifies more than just the release of a film; it’s a meticulous trip through the labyrinth of legal adjudication and financial responsibility.
With all legal impediments dispelled, audiences globally can now anticipate the extraordinary cinematic experience that “Thangalaan” promises. This development also underscores the significant role of legal compliance in the entertainment industry and sets a precedent for future financial and production-related conflicts.
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