In May 2007, UTV terminated all business relations with Palador that it formed under the brand of UTV-Palador in 2006. In August, a settlement was made, according to which Palador was to reimburse UTV the expenses incurred on the venture within 90 days and UTV was supposed to hand over clean possession of the brand Olive collection and the materials of the films that were in UTVs possession.
When contacted, the company secretary and legal head of UTV Software Communications Ltd said, Both parties entered into written and binding mutual consent terms, passed by the learned arbitrator, directing Gautam Shiknis and Mohan Polamarasetty of Palador Picture to pay to UTV Rs 4.03 crore within 90 days from the date of the award. The said 90 days expired on October 31, 2007. Palador Picture Pvt Ltd failed to pay the agreed amount and hence UTV became the absolute owner of 75 films".
Mohan Polamarasetty, co-founder and joint MD, Palador Pictures, said, We do not have any problem in paying the money, but we want clear details of the payment that we are supposed to make and we also want our 75 films to be given back to us.