CHENNAI: A division bench of the Madras High Court comprising justices SM Subramaniam and C Kumarappan on Wednesday injuncted Studio Green, the production company of KE Gnanavelraja, from releasing Va Vathiyaar starring Karthi, in any form including theatres and digital formats until the unpaid dues are cleared.
The injunction was granted on the petition filed by the official assignee of the high court praying for restraining the producers from releasing the movie unless they pay the dues owed to an insolvent, Arjunlal Sundardas, from whom Rs 10.35 crore was borrowed for his film projects.
The movie was scheduled to hit the screens on December 12.
The bench also said the movie will not be allowed to be released until the unpaid dues are cleared by the producers.
The official assignee submitted the debt has mounted to Rs 21.78 crore including interest.
The counsel for Gnanavelraja submitted he was ready to deposit Rs 3.75 crore within 24 hours and would surrender collateral security for the remaining amount.
However, the bench rejected the offer stating several opportunities were given to him to repay the debt but he did not utilise the opportunities to settle the dues.