Palador Pictures, which holds rights to over 1,000 films from the world over, has dragged its erstwhile partner UTV Software Communications to court over a dispute regarding the rights to 75 films as well as a compensation of Rs 4.03 crore following the termination of their business relationship in May this year. Palador has filed a suit in the Bombay High Court on October 31 under section 34 of the Arbitration and Reconciliation Act of 1996, demanding that UTV give them details of the Rs 4.03 crore which they are supposed to pay back to UTV as expenses incurred in the tie-up. UTV should also give them back their 75 films which is worth about Rs 6 crore. Palador is in the process of filing four more law suits against UTV and will be demanding upwards of Rs 15 crore as damages. Gautam Shikhnis, founder and MD, Palador Pictures, said, “We contacted them (UTV) a lot many times during this period and have been asking them to give us a detailed break up of the Rs 4.03 crore. They said they will, but till date, we have not received anything as such”.
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 UTV’s 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.”