Case Note & Summary
The petition was filed under Section 37 of the Arbitration and Conciliation Act, 1996, challenging an interim order dated 16 July 2012 passed by the learned arbitrator under Section 17, granting interim measures in favour of the respondents. The dispute concerned the remake rights of the iconic 1973 Hindi film 'Zanjeer', originally produced by the sole proprietary concern of Prakash Mehra, Prakash Mehra Production (PMP). The respondents, Sumeet P. Mehra and Puneet P. Mehra, are sons of the late Prakash Mehra, and Mr Amit Mehra is another son and a director of the petitioner company, Adai Mehra Production Pvt. Ltd. On 24 August 2011, the petitioner entered into a co-production agreement with Flying Turtle Films (FTF) for the remake of 'Zanjeer', representing that it held the remake rights. Mr Amit Mehra had been actively promoting the remake in the media. In November 2011, the respondents objected, asserting their co-ownership rights as legal heirs of Prakash Mehra. After negotiations, on 24 January 2012, the parties entered into an agreement whereby the respondents licensed the remake rights in Hindi and Telugu to the petitioner for a period of four years or one year after release, whichever was earlier, for a total consideration of Rs. 4.10 crores payable in twelve installments. The agreement contained an arbitration clause and provisions for termination upon default in payment. The petitioner paid the first installment of Rs.28 lakhs on 29 January 2012, followed by the second installment on 23 March 2012. Disputes arose regarding other projects and claims by storywriters regarding moral rights. The respondents eventually invoked arbitration, and the arbitrator passed the impugned interim order. The petitioner then filed this petition challenging that order. The court heard arguments and reserved judgment on 27 February 2013, pronouncing it on 3 April 2013.
Issue of Consideration
ARBITRATION PETITION NO.15 OF 2013
