Justice Sanjeev Narula's judgment on the petition filed by Super Cassettes Industry Pvt Ltd (SCIPL) or T-Series came after Reliance Entertainment Studios offered to share 50 per cent of the profits generated from the film with T-Series as per the agreement. Two companies.
"This commitment (by Reliance) includes (a) a fixed commission or deposit of 2 per cent from the license fee, which will be deducted from the final installment that Reliance receives from Netflix, and (b) 50 per cent of the profits generated by the B film." Amar Singh Chamkila',” the court said.
Despite objections from T-Series seeking a blanket injunction against Reliance's future film releases due to outstanding debts, the court chose a more nuanced approach.
In its comments, the court emphasized the complexity of distinguishing between gross revenues and net profits, particularly in the context of film production and distribution agreements, and concluded that T-Series' claim on revenues from the Netflix agreement trumps net profits. Should be implemented. Instead of gross revenue earned from Reliance."Given the complexities inherent in distinguishing between gross revenues and direct profits accruing to Reliance, the Court finds that SCIPL's lien, relating to the film, in the present circumstances, would be more appropriately applied to the net profits of Reliance rather than can be made from th gross revenue,” it said.
Recognizing the equitable considerations at play, the court directed Reliance to honor its commitments, which include a fixed commission from the licensing fees and 50 percent of the profits from "Amar Singh Chamkila" as it serves the interests of all parties involved. The need to balance is highlighted. and ensure compliance with the contractual and legal framework governing their relationships.
The court said, "These measures reflect an equitable approach to reconciling the interests of all parties involved and ensuring compliance with the contractual and legal framework governing the relationship between SCIPL, Reliance, Netflix and WSF.,
"The above undertaking has been accepted and will bind the defendant (Reliance) to deposit the aforesaid amount with the Registrar General of this Court as and when it is received by him."
Super Cassettes Industries Pvt Ltd had for the second time filed an application to restrain Reliance Entertainment Studios Pvt Ltd from releasing, exhibiting and telecasting cinematographic films. It accuses Reliance of not complying with the prior undertaking given to this court, stating that despite the commitment, Reliance is going ahead with the release of new films.
SCIPL claimed a consequential right to obtain an injunction arising from the LOA agreement and claimed liens and fees on the revenues generated from these films.
"This commitment (by Reliance) includes (a) a fixed commission or deposit of 2 per cent from the license fee, which will be deducted from the final installment that Reliance receives from Netflix, and (b) 50 per cent of the profits generated by the B film." Amar Singh Chamkila',” the court said.
Despite objections from T-Series seeking a blanket injunction against Reliance's future film releases due to outstanding debts, the court chose a more nuanced approach.
In its comments, the court emphasized the complexity of distinguishing between gross revenues and net profits, particularly in the context of film production and distribution agreements, and concluded that T-Series' claim on revenues from the Netflix agreement trumps net profits. Should be implemented. Instead of gross revenue earned from Reliance."Given the complexities inherent in distinguishing between gross revenues and direct profits accruing to Reliance, the Court finds that SCIPL's lien, relating to the film, in the present circumstances, would be more appropriately applied to the net profits of Reliance rather than can be made from th gross revenue,” it said.
Recognizing the equitable considerations at play, the court directed Reliance to honor its commitments, which include a fixed commission from the licensing fees and 50 percent of the profits from "Amar Singh Chamkila" as it serves the interests of all parties involved. The need to balance is highlighted. and ensure compliance with the contractual and legal framework governing their relationships.
The court said, "These measures reflect an equitable approach to reconciling the interests of all parties involved and ensuring compliance with the contractual and legal framework governing the relationship between SCIPL, Reliance, Netflix and WSF.,
"The above undertaking has been accepted and will bind the defendant (Reliance) to deposit the aforesaid amount with the Registrar General of this Court as and when it is received by him."
Super Cassettes Industries Pvt Ltd had for the second time filed an application to restrain Reliance Entertainment Studios Pvt Ltd from releasing, exhibiting and telecasting cinematographic films. It accuses Reliance of not complying with the prior undertaking given to this court, stating that despite the commitment, Reliance is going ahead with the release of new films.
SCIPL claimed a consequential right to obtain an injunction arising from the LOA agreement and claimed liens and fees on the revenues generated from these films.
