CHENNAI: The Madras High Court directed film producer KE Gnanavel Raja to inform the court by Wednesday whether he was willing to repay a loan amount in full or at least a substantial portion of it.

Studio Green, Gnanavel Raja’s production house, produced ‘Va Vaathiyar’, directed by Nalan Kumarasamy and starring actor Karthi. The film has been scheduled for theatrical release on December 12.

In the meantime, the Official Assignee of the Madras High Court filed a petition related to a financial dispute, stating that S Arjunlal Sunderdas, a businessman, was declared insolvent in 2014, following which the High Court appointed an Official Assignee to administer his properties.

It was further submitted that Studio Green had borrowed Rs 10.35 crore from Arjunlal prior to his being declared insolvent. With interest accrued, the outstanding amount has now risen to Rs 21.78 crore.

The Official Assignee requested the court to direct Gnanavel Raja to repay the dues, impose an interim stay on the release of ‘Va Vaathiyar’, and order that the film’s revenues be deposited before the court. The High Court had earlier passed an interim order restraining the release of the film.

When the case came up for further hearing before Justices SM Subramaniam and C Kumarappan, the bench directed Studio Green to inform the court by Wednesday when the outstanding amount of Rs 21.78 crore would be repaid and whether a substantial sum could be remitted to the Official Assignee.