The Madras High Court today stayed tomorrow's scheduled release of Telugu film 'Pandaga Chesko' till June 11 on a complaint from a financier that the director owed him Rs one crore dues.
Justice S Vaidyanathan, in his interim order on an application in a suit filed by city-based PVP Capital Limited, restrained United Movies, represented by its proprietor Paruchuri Sivaram Krishna Prasad, from releasing the film slated for screening tomorrow.
"There shall be an interim order as prayed for till June 11, 2015," the Judge said and posted the matter for further hearing to June 5.
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He ordered notice to film Director C Meher Ramesh Kumar, United Movies and Krishna Prasad.
The applicant submitted that he had extended a loan of Rs one crore to Ramesh Kumar for his business purposes under an agreement that the principal was repayable on or before January 1, 2013 with interest at 30 per cent per annum.
Ramesh Kumar and United Movies have executed a Deed of Guarantee under which both of them have guaranteed and indemnified the repayment of the entire amount with interest.
Krishna Prasad, admitting his liability, had executed a demand promissory note for the amount. In addition, he and United Movies had executed a Deed of Undertaking that they would not release their earlier film "Shadow" until the repayment of the entire dues.
However, in blatant violation of the undertaking, the United Movies had released the movie, it was argued.
The amount due with interest as on date stands at Rs 1.54 crore.
Whileso, the financier came to know about the production of the latest film "Pandaga Chesko" by the company and that it was going to be released on May 29.
Their act was nothing but an attempt to defraud him, the applicant said.
