HYDERABAD: The Telangana High Court has quashed two criminal cases registered against Warner Bros. Pictures (India) Private Limited, ruling that the dispute stemmed from contractual obligations and did not constitute cheating or criminal breach of trust.
Justice N Tukaramji allowed two writ petitions filed by the company, represented by its MD Denzil Dias, challenging FIRs by the Central Crime Station, Hyderabad, and Jubilee Hills police. The dispute arose from theatrical distribution agreements between Warner Bros. and film distributor Balakrishna Gogineni for films including Man of Steel, Pacific Rim and Into the Storm in AP, Telangana and Marathwada in 2013-14.
Warner Bros. argued that the distributor repeatedly defaulted on payment schedules and filed criminal complaints only after civil proceedings initiated by him failed. The company contended that the allegations reflected a commercial dispute and did not attract offences under IPC Sections 406 and 420.
The HC observed that the parties had continued their business relationship despite payment defaults, indicating the absence of dishonest intention from the outset. It also held that payments under commercial agreements could not be treated as “entrustment” for criminal breach of trust.