Film producer Firoz A Nadiadwala is set to continue facing a claim of ₹24 crore after the Bombay High Court rejected his request to dismiss the lawsuit due to issues with the service of summons.
In a recent ruling, Justice Abhay Ahuja stated that even if there were technicalities surrounding the summons, the case could not be dismissed if the defendant has actively participated in the process through a lawyer. Records indicate that Nadiadwala was represented by a senior advocate during earlier hearings, which shows he had knowledge of the ongoing litigation.
Overview of the Dispute:
- Funding Agreement: On July 16, 2015, businessman Anil Dhanraj Jethani agreed to finance a film produced by Nadiadwala.
- Lawsuit Filed: Jethani filed a suit at the High Court on August 19, 2015, claiming that ₹24 crore was due and unpaid.
- Consent Order: A consent order on September 1, 2015, permitted Jethani to withdraw ₹12.5 crore that had been deposited by another party. Nadiadwala was required to pay the remainder before his upcoming film, Welcome to the Jungle, which faced delays.
- Change in Proceedings: The case was re-registered as a commercial suit after the Commercial Courts Act came into effect in October 2015.
Nadiadwala’s Arguments:
Nadiadwala sought to have the lawsuit dismissed based on several points:
- He argued that no formal summons had been served, which he believed made all following orders invalid under the Civil Procedure Code (CPC).
- He highlighted that there had been no action for over seven years to issue new summons.
- He questioned the validity of the financing agreement, noting it lacked a signature from one party.
Court’s Decision:
Justice Ahuja dismissed Nadiadwala’s arguments. The judge clarified that the CPC allows for the waiver of formal service if the defendant has appeared through legal counsel. As Nadiadwala had already participated in the proceedings, it confirmed that he was aware of the case against him.
The lawsuit will continue in the commercial court, and both parties are encouraged to cooperate to facilitate a timely trial.
This ongoing legal battle may pose challenges for financing and releasing the next installment of Nadiadwala’s popular Welcome franchise, which features a star-studded cast and is yet to announce a new release date.
