But Karunakaran's son and Congress leader K Muraleedharan said it was quite unfortunate that his father's name was dragged into controversy to 'gain publicity' for the film.
The film also indicates that late litterateur Malayattoor Ramakrishnan was also not keen on recognising Daniel as the pioneer of Malayalam cinema when he was Culture Secretary.
He said "even if thousand Kamals tried, the late leader's image cannot be maligned." Muraleedharan's sister Padmaja, who also echoed similar views, said Karunakaran had always encouraged art and artistes.
Gopalakrishnan, in his book 'J C Danielinte Jeevitha Katha' had clearly mentioned the name of Karunakaran who, he said, had tried to recognise the 1938 Malayalam talkie 'Balan' directed by S Nottani as the first film in the language.
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His biography of Daniel also criticises 'Malayattoor' Ramakrishnan for turning a blind eye to the pioneering effort of Daniel.
Daniel's silent movie 'Vigathakumaran' was released in the Capitol theatre here in 1928.
When the question was put to Cinema Minister K B Ganesh Kumar at the time of the announcement of state film awards, he said, "it is just a film, and film has to have a villain."
'Celluloid' won seven state film awards for the year 2012 including the one for best film.
However, with Muraleedharan's statement, KPCC president Ramesh Chennithala also said the hints in the film pointing towards Karunakaran could have been avoided.