Cine1 studio moves Delhi HC, seeks stay of 'Animal' movie on OTT platforms
Cine1 Studios Private Limited, one of the co-producers of the movie 'Animal', filed a suit in Delhi High Court against Super Cassettes Industries Private Limited (T-Series), seeking direction to restrain releasing the film "Animal" on any Over-the-Top (OTT) platform, any digital streaming platform or any satellite broadcast.
CINE1 Studios Private Limited (Plaintiff) claims that Super Cassettes Industries Pvt Ltd entered into an acquisition agreement dated September 11, 2019 and a letter dated October 13, 2021, and another agreement titled amendment agreement to the acquisition agreement dated August 2, 2022.
Under the agreement, the plaintiff agreed to assign its right of first refusal and last matching right to produce the second Hindi film to be directed by Vanga Sandeep Reddy to Defendant No. 1.The parties agreed that they would each have 35 per cent ownership of the 'Derivative Rights' and 'Intellectual Property Rights' of cinematograph film to be so produced.
It was also agreed that the plaintiff would be entitled to 35 percent of the profit share. The agreement and amendment agreement laid down various other rights and obligations in favour of the parties thereto, as stated in the suit.
The plaintiff Cine1 studio claimed that the Super Cassettes consistently breached its contractual rights.
Senior Advocate Sandeep Sethi appeared for the plaintiff in the matter and according to the suit, "Super Cassettes has not only released the film without the approval, consent or consultation of the plaintiff, but it has also incurred expenses for making, promoting, and releasing the film without the plaintiff's approval or consent and received revenues from box office sales but failed to disclose or disburse any sums to the plaintiff."
Furthermore, the defendant has also failed to disclose the final cost of production for the film, suit stated.
According to the suit, apart from the above financial breaches, the Defendant failed to consult, get consent and get approval from the plaintiff about the release of the pre-teaser, trailer, and other promotional materials for the film. "It also failed to ensure that the contractually agreed credits (including logos) are duly accorded and are of equal prominence in all modes of promotion as well as the film, failed to get the censor certificate issued in the joint name of the plaintiff and defendant, and failed to consult or obtain consent in regards to the marketing and publicity plan," the suit mentioned.
Senior Advocate Amit Sibal, who appeared for T-Series, stated that an amendment dated August 2, 2022, was made to the original contract by which Cine1 allegedly gave up all its intellectual property and derivative rights in the film and took Rs 2.6 crores for it.
The bench of Justice Sanjeev Narula on Monday, after noting down the submissions, fixed the matter for further hearing on Thursday and granted time to the plaintiff's counsel to obtain instructions regarding this amendment agreement.
Plaintiff's counsel assures the court that their client will be present in person in court on Thursday.
According to the suit, the defendant has entered into an agreement with Netflix India for granting internet exploitation rights and Sony Pictures Networks India for granting satellite rights to the film. "In accordance with its consistent conduct, the defendant, Super Cassettes, has failed to share any details regarding the same with the plaintiff," it mentioned.
In view of the defendant's conduct, the plaintiff moves the Delhi High Court to assert that its contractual rights against the defendant ought not to be allowed to release the film on any digital or satellite platforms without first remedying the breaches committed by it, according to suit.
