CHENNAI: The Madras High Court has imposed costs of Rs 25 lakh on Gemini Film Circuit (GCC) for “dragging litigations” over default of payment to Venkateswara Financiers Hyderabad Private Limited.
Dismissing an appeal filed by GCC, the first bench of Chief Justice Sanjib Banerjee and Justice PD Audikesavalu said, “The appellants will pay costs assessed at Rs 25 lakh to the respondent in addition to whatever is due in terms of the decree that has been upheld.”
The bench stated that defaulting borrowers, like the present appellants, take advantage of the existing judicial system and prey on its shortcomings. This is because more often than not, courts do not pass appropriate order for costs and do not take matters to their logical conclusion by taking action for perjury in respect of false affidavits.
The entire object of the Commercial Court Act, 2015 would be defeated if commercial matters are not dealt with by applying commercial principles and by awarding appropriate costs and interest, the bench said. The bench affirmed that there is no ground for interfering with the judgment. The appeal is elated to GCC borrowing Rs 7.5 core at 27 per cent interest per annum in 2012 for financing the film Madha Gaja Raja.