Bombay HC directs Eros International to pay dues of Rs 19.39 lakh to Bhansali Productions

Bhansali Productions through senior counsel Zal Andhyarujina and advocates Nausher Kohli, Parag Khandhar, and Nachiket Yagnik challenged an intimation filed by Eros International with Bombay Stock Exchange of an all-share merger with its parent company Eros International Plc and Hollywood’s STX Filmworks. The proposed merger is likely to be closed by June 30.

Bhansali Productions sought urgent reliefs to restrain Eros International from selling, exploiting, licensing, distributing, and renewing rights over the film. It claimed the Eros merger was based on incorrect and misleading disclosure and that STX Filmworks or other companies cannot claim any rights in the film.

Advocates Akshay Patil and Vikrant Zunjarrao, representing Eros International, said the 2013 film was specifically mentioned in annual returns published for the fiscal ending March 31, 2019, and therefore there was no urgency to grant interim reliefs to Bhansali productions.

Single-judge bench of Justice Burgess P Colabawalla noted respondent companies are situated in the British Isles and California and it will require a detailed hearing to consider the law on whether reliefs can be granted against entities falling beyond court’s jurisdiction. “I do not think that a case for ad-interim reliefs is made out at this stage, considering that the court is hearing only extremely urgent matters due to the COVID-19 pandemic,” Justice Colabawalla noted.

However, the bench directed Eros International to pay dues of Rs 19.39 lakh to Bhansali Production related to the co-production arrangement within three weeks. The court said Bhansali Productions will have the liberty to approach it for reliefs against the merger after regular court resumes post lockdown.

A spokesperson from Eros said, “Eros always sticks to best corporate governance and business practices and had already given the cheque in advance as per our agreement. We will take appropriate legal action against Sanjay Leela Bhansali’s production for this malafide and unfounded action, which has also been duly noted by the court.”