Madras High Court Restrains Vishal From Releasing Any Movie Without Depositing 15 Crores To The Credit Of Lyca

In the case of actor Vishal's 21 crore rupees loan from Lyca Film Production Company, the Madras High Court has upheld the order issued by a single judge to pay 15 crore rupees to the court.

Famous Tamil film actor Vishal runs his own production company named Vishal Film Factory. Under this he used to produce films of various actors besides his own films.

He has taken a loan from famous cinema financier Anbuchezhiyan's Gopuram Films to produce films on behalf of his company. In this way, the loan of Rs. 21 crores 29 lakhs received by him was accepted and paid by Lyca. In this regard, in the agreement between Vishal and Lyca, it was guaranteed that the rights of all the films of Vishal's company would be given to Lyca until the entire loan amount was repaid.

In this situation, Lyca filed a case in the Madras High Court seeking an injunction against the release of Vishal's film Veerame Vaagai Soodum for not repaying the loan they had received and breaching the guarantee they had given. Hearing the case, the Madras High Court ordered Vishal to deposit Rs. 15 crore as a permanent deposit in the bank in the name of the Chief Registrar of the High Court and to submit the property details. Vishal's side had appealed against this order of the single judge in a two-judge bench.

The appeal came up for hearing before a division bench of Chief Justice Raja and Justice Bharatha Chakraborty. At that time, they confirmed and ruled on the order of the single judge that Vishal should pay Rs. 15 crore to the court. If the amount is not paid, they ordered that any films produced by Vishal Film Factory should not be released in theaters and OTT sites until the judgment of the case is pending before the single judge.