CHENNAI: The Madras High Court imposed a fee of Rs 25 lakh on Gemini Film Circuit (GCC) for âdragging out litigationâ for non-payment to Venkateswara Financiers Hyderabad Private Limited.
Dismissing an appeal filed by the GCC, First Bench of Chief Justice Sanjib Banerjee and Judge PD Audikesavalu said: âThe appellants will pay the costs assessed at Rs 25 lakh to the respondent in addition to all that is owed in terms of the decree that was confirmed. . “
The judiciary said defaulting borrowers, like the current appellants, are taking advantage of the existing court system and profiting from its loopholes. This is because more often than not the courts do not make an appropriate order for costs and push things to their logical conclusion by taking action for perjury in respect of false affidavits.
The whole purpose of the Commercial Court Act 2015 would be defeated if trade matters are not dealt with by applying commercial principles and awarding appropriate fees and interest, the magistracy said. The court said there was no need to intervene in the judgment. The call is enthusiastic about the idea that GCC is borrowing a core of Rs 7.5 to 27% interest per year in 2012 to finance the film Madha Gaja Raja.