Case Note & Summary
The petition under Section 34 of the Arbitration and Conciliation Act, 1996, was filed by Reliance Media Works Limited (formerly Adlabs Films Ltd.) against B.R. Films, a partnership firm, challenging an arbitral award dated 10th December, 2012. The dispute arose from a Distribution Agreement dated 14th March, 2008, whereby the respondent granted exclusive distribution rights to the petitioner for the Hindi film “Banda Yeh Bindass Hai,” originally titled “Pappu Pass Ho Gaya.” The respondent was producing the film and had obtained financial assistance of Rs. 750 lakhs from IDBI, with a tripartite laboratory agreement involving the petitioner and IDBI. Prior to the agreement, the respondent had corresponded with Twentieth Century Fox, acknowledging that the film was an Indian adaptation of “My Cousin Vinny,” and had offered a token amount. The petitioner paid Rs. 7 crores under the Distribution Agreement. The respondent failed to deliver the film by the agreed delivery date of 30th June, 2008, or within the grace period up to 30th September, 2008. The respondent claimed that the film was shown to an employee of the petitioner in August 2008, but the petitioner denied this. Meanwhile, Twentieth Century Fox sent legal notices alleging plagiarism, and on 13th April, 2009, it filed suit No. 1925 of 2009 against the respondent for copyright infringement. The respondent terminated the Distribution Agreement on 23rd March, 2009, forfeiting the advance, while the petitioner also terminated on 26th March, 2009, seeking refund with interest. The petitioner invoked arbitration on 27th May, 2009. The parties jointly appointed a former Supreme Court judge as sole arbitrator on 29th March, 2010. The petitioner filed a statement of claim on 29th June, 2010, seeking refund of Rs. 9.25 crores (presumably including interest or additional amounts). The arbitral award dated 10th December, 2012 partly allowed the respondent’s claims. The petition in the High Court sought to set aside that award. The judgment, delivered by Justice R.D. Dhanuka on 11th July, 2018, records only the factual background and does not contain the court’s analysis or decision in the provided excerpt.
Issue of Consideration
ARBITRATION PETITION NO.1333 OF 2012
