Decided on September 17,2007



SANJIV KHANNA, J. - (1.) The appellant No. 1, M/s Raamraj Kala Mandir has filed the present appeal against the Order dated 7th February, 2005 granting injunction and restraining the appellant from telecasting the film "Ganga Jamuna Saraswati".
(2.) The respondent-M/s Nahata Limited has filed a suit for recovery of Rs.1,62,46,215/- against the appellant No. 1 and M/s. Gemini Pictures Circuit (P) Ltd.-appellant No. 2. The respondent had also filed injunction application under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (hereinafter referred to as the Code, for short) for restraining the appellant from telecasting and delivering prints of the feature film "Ganga Jamuna Saraswati", which application stands allowed by the impugned order.
(3.) It is an admitted case of the parties that an Agreement dated 15th May, 1986 was executed between the appellant No. 1 and the respondent, for finance to the extent of Rs. 75 lakhs, pursuant to which respondent had financed a sum of Rs. 56.25 lakhs to the appellant No. 1. This amount was to be repaid as per the covenants of the Agreement. Negative of the said film was deposited with appellant No.2. These were not to be handed over by the appellant No. 2 to the appellant No. 1 without the consent of the respondent or till the appellant No. 1 remained bound by the covenants of the said Agreement. Relevant clauses of the Agreement have been reproduced in the impugned Order. We may refer only to one Clause, namely, Clause 5 of the Agreement which reads as under :- "In consideration of the premises aforesaid as security for repayment of all the amounts due and payable hereunder the producers shall simultaneously with the execution hereof address a letter to the said Gemini Colour Laboratory or such other laboratory with whom negatives prints etc. of the said picture are deposited or to be deposited from time to time, irrevocably by authorizing it to hold the said negatives prints etc. in trust for an in the name and on behalf of the financiers. It will be further clarified in the said letter that the negatives are to be maintained in the name of the financiers only till such time that all the amounts that may become payable by the producers to the financiers in terms of this agreement are paid by the producers to the financiers in full and once the same are so paid to full whether the same has become due of not. (sic)" (emphasis supplied);

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