Delhi High Court Decides on Profit Sharing and Release of Film ‘Amar Singh Chamkila’

The Delhi High Court has ordered Reliance Entertainment Studios to allocate 50 percent of the profits from the film “Amar Singh Chamkila” to T-Series, following a plea filed by T-Series. Despite objections, the court emphasized the need to distinguish between gross revenues and net profits in film agreements.

In response to Reliance’s offer to share profits with T-Series, the court directed Reliance to adhere to its commitments, including depositing a fixed commission from the licensing fee and 50 percent of the profits from the film. The court highlighted the importance of balancing the interests of all parties involved and ensuring compliance with contractual and legal frameworks.

Furthermore, Super Cassettes Industries Private Ltd (SCIPL) filed a second application seeking to prevent Reliance from releasing new films, alleging non-compliance with a prior undertaking. SCIPL claimed a lien and charge on the revenues from these films, asserting a right to seek an injunction based on the Loan Agreement.

The court acknowledged the complexities of the case and emphasized the equitable approach taken to resolve the matter. The measures outlined by the court aim to reconcile the interests of all parties and ensure adherence to the agreements governing their relationships. Reliance is expected to deposit the specified amounts with the Registrar General of the court in due course.


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