Madras High Court Orders Actor Vishal To Pay Rs. 30 Crore To Lyca Productions, Says His Conduct Has Been Evasive

The Madras High Court has directed Actor Vishal to pay Rs. 30 Crore due to entertainment company Lyca Productions. Decreeing a suit filed by Lyca, Justice PT Asha also remarked that Vishal's conduct had been evasive from the beginning of the suit. Thus, the court noted that it was a case where cost could be imposed on Vishal. “Despite the legal notice and reminder letters the defendant has failed to respond to the same. If the defendant was not liable to pay the said amount he would have immediately responded to these notices stating that he did not owe any amount to the plaintiff. In fact under Ex.P.4 agreement the defendant is obliged to notify the plaintiff in case he is not in a position to repay the amount on time. The conduct of the defendant from the beginning of the suit proceedings appears to be evasive,” the court observed. Background The court passed the order in the suit filed by Lyca. Vishal had taken a loan from GN Anbu Chezhian of Gopuram Films to the tune of Rs 21.29 crore along with interest. When these amounts remained unpaid, Lyca Productions stepped in and paid Anbu Chezhian on the promise that Vishal will repay Lyca the entire amount along with interest at the rate of 30% per annum, calculated on diminishing balance. When this amount remained unpaid, Lyca approached the High Court which directed him to make a fixed deposit for ₹15 crore to the credit of the civil suit and hand over the original FD receipts to the Registrar of the High Court. This FD was initially for a period of one year and was to be renewed till the disposal of the suit. Though Vishal had challenged this order, the court had observed that there was a debt and Vishal was liable to repay Lyca. The court had thus restrained Vishal from releasing any of his movies till the deposit of such amount. Lyca had contended that Vishal had neither repaid the loan amount not notified them about his inability to repay as provided under the agreement. Lyca submitted that it was forced to file the suit when Vishal failed to acknowledge the debt even after remainders. Vishal submitted that Lyca had undertaken to takeover his loan to settle Mr. Anbu Chezhian with respect to a sum of Rs.12 Crores and this fact was suppressed in the plea. He further submitted that when the original loan was for a sum of Rs. 12 crore, there was a suspicion with reference to the present suit for a claim of Rs. 21.29 Crore. Vishal thus claimed that there was ambiguity in the plaint regarding alleged loan transaction and there was no document to show that the loan had been taken over by Lyca. The court however noted that there was an agreement entered into between the parties which was admitted by Vishal in his counters and the same was breached. Thus, the court noted that Lyca was entitled to recover the principal amount of from Vishal. Counsel for Petitioner: Mr. V. Raghavachari Senior Counsel For M/s. Hema Srinivasan Counsel for Respondent: Mr. A. K. Sriram Senior Counsel For Mr. M. Arun. Case Title: Lyca Productions Private Limited v Vishal Krishna Reddy Citation: 2025 LiveLaw (Mad) 192 Case No: C.S.No. 59 of 2021Click Here To Read/Download The Judgment

Madras High Court Orders Actor Vishal To Pay Rs. 30 Crore To Lyca Productions, Says His Conduct Has Been Evasive

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Madras High Court Orders Actor Vishal To Pay Rs. 30 Crore To Lyca Productions, Says His Conduct Has Been Evasive

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