Section 9 of the AA – Interim Injunction – Interpretation of deed of copyright transfer – whether for remake only or also for sequel

Judgment dated 27.10.2023 of the High Court of Bombay in Arbitration Petition (Lodging) No.18905 of 2023 of Sri Abihshek Pictures Vs. Abhishek Agarwal Arts LLP & Others

Section 9 of the AA – Interim Injunction – Deed of transfer of copyright in the film was for remake of the film excluding the right to make sequel was excluded – Interpretation

Petition under Section 9 of the Arbitration Act, 1996, for interim injunction restraining the respondents from producing sequel of a film in Telugu language on the ground that by a transfer deed executed by the petitioner, the respondent no.1 alone was authorised to produce a remake of the said original film. In other words, right to produce a sequel was not granted.

On 15.5.2017, the Petitioner and Respondent no.3 executed agreement to jointly produce Telugu language film “Goodachari” and equally held IP / Exploitation Rights.  The film was released on 3.8.2018.

On 4.5.2019, the petitioner and respondent nos.1 & 2 executed deed of transfer to acquire rights including remake of the original film.  Respondent no.3 was the consenting party to the said deed.

In June 2023, the respondent nos.1 and 2 with respondent no.4 announced to make sequel of the said film.   The petitioner objected to the same on the ground that the transfer deed excluded right to make remake of the film.

  HELD that the petitioner failed to make out a prima facie case, the balance of convenience did not lie in its favour and reading the entire document as a whole, interpretation sought to be placed by the petitioner would lead to an absurdity.  The golden rule of interpretation is to accept one which gives effect to all the causes in the document in preference to the interpretation that renders one or more such clauses nugatory.