CHENNAI: The Madras High Court directed Lyca Productions to file a counter to actor Vishal's plea seeking six weeks to deposit Rs 10 crore.
The case relates to a financial arrangement under which Lyca Productions repaid a loan of Rs 21.29 crore that actor Vishal had borrowed from film financier Anbuchezhian's Gopuram Films for his company, Vishal Film Factory.
As per the agreement, Lyca Productions was entitled to hold the rights of all films produced by Vishal Film Factory until the entire amount was recovered. Lyca Productions later alleged that the terms of the agreement were violated and that films were released without settling the dues.
Consequently, Lyca approached the Madras High Court seeking recovery of the amount. A single judge subsequently directed actor Vishal to repay Rs 21.29 crore along with 30 per cent annual interest.
When the matter was taken up on appeal, a division bench stayed the repayment order and directed Vishal to deposit Rs 10 crore with the court.
Subsequently, actor Vishal filed a petition seeking an extension to deposit Rs 10 crore. Senior counsel AK Sriram, appearing for Vishal, submitted that due to issues related to GST, Vishal was unable to deposit the amount and sought six weeks' time for compliance.
The Bench directed Lyca Productions to file its counter-affidavit to Vishal's plea seeking extension of time for depositing the amount.