Madras HC asks actor Vishal to repay Rs 21 Cr loan with interest to Lyca Productions
Lyca Production had accused the actor of breaching a loan repayment agreement by releasing his films without its consent
The Madras High Court has directed actor Vishal and his production company, Vishal Film Factory, to repay Rs 21.29 crore with 30 per cent interest to Lyca Productions for breaching an agreement related to a loan repayment.
Lyca’s allegations against Vishal
The dispute originates from a loan of Rs 21.29 crore that Vishal’s production house borrowed from financier GN Anbu Chezhiyan’s Gopuram Films, which Lyca Productions subsequently took over. As per the agreement, Lyca was to hold the rights to all films produced by Vishal Film Factory until the loan was fully repaid. However, Lyca alleged that Vishal violated the agreement by releasing films without the company’s consent and sought a court order for repayment.
Also read: Tamil actor Vishal says he paid Rs 6.5 lakh to Censor Board; Centre orders an inquiry
Earlier order
Earlier, the high court had ordered Vishal to deposit Rs 15 crore as an interim measure. A division bench of two judges upheld this order and imposed a ban on Vishal releasing any films in theatres or on OTT platforms until the single judge’s final verdict, should he fail to deposit the amount.
The case was heard by Justice PT Asha. Vishal was previously summoned to appear in person for failing to comply with the court’s orders to deposit the amount and submit details of his assets. During the hearing, Vishal appeared in court, and the court expressed its disapproval of his non-compliance. Following the court’s directive,
Actor to pay loan, interest, litigation costs
Vishal submitted details of his assets, which included three cars, a motorcycle, documents of two bank accounts, and details of a home loan.
Also read: Non-bailable warrant issued against actor Vishal for non-deposit of TDS
Delivering the verdict on Wednesday (June 4), Justice Asha ordered Vishal to repay the principal amount of Rs 21.29 crore along with 30 per cent interest to Lyca Productions. Additionally, Vishal has been directed to cover the litigation costs.