A city-based film financier has moved the Madras High Court alleging that film producer and director AM Ratnam has failed to return Rs 1.50 crore and prayed the court to stop the release of Tamil feature film Arambam starring Ajit, Adiya and Nayanthara.
The application arising out of a civil suit was filed by B Rajeswari, represented by her son B Anantha Krishnan of Shenoy Nagar. Justice V Ramasubramanian ordered the notice to Ratnam.
According to Krishnan, his mother had financed Rs 1.50 crore to Ratnam, proprietor of Sri Surya Movies, for producing a Tamil feature film ‘Kallan’. An agreement was entered into in May, 2005. Later, the film name was changed to Kedi. As per the agreement, Ratnam was to repay the amount before the release of the film in January 2006.
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In the event of failure, he had to pay the interest at 18 per cent per annum from February 2006. However, Ratnam did not repay either the principal or the interest.
A similar agreement was entered into between the duo for production of another film Nandalala wherein the amount that was due under the earlier agreement was transferred to this agreement. In the event of failure to repay the money by April 2007, Ratnam agreed to pay an interest of 36 per cent per annum on the principal amount. Thus, Ratnam was to pay a total of Rs 4.60 crore, including interest as on October 10.
Meanwhile, the plaintiff came to know that Ratnam was producing the film, Aarambam, which was scheduled to be released shortly. Hence, he prayed the court to restrain Ratam from releasing the film until the due amount was repaid.