Filmmaker Gautham Menon Moves Supreme Court Against ₹4.25 Crore Refund Order In Dispute Over Unmade Film

Photon Factory, represented by filmmaker Gautham Vasudev Menon, has moved the Supreme Court against a Madras High Court judgment directing it to refund ₹4.25 crore with 12% interest to R.S. Infotainment.

The dispute concerns an untitled film project that the filmmakers claimed was later completed and released as 'Nee Thane En Pon Vasantham'.

The special leave petition, filed on June 8, is yet to be listed

The challenge is directed against a March 23, 2026 judgment of a division bench of Justice P. Velmurugan and Justice K. Govindarajan Thilakavadi. The bench affirmed a single judge's April 5, 2022 decree directing Photon Factory, Menon and others to repay ₹4.25 crore with interest and costs of ₹12 lakh.

The dispute arose from an agreement dated November 27, 2008 under which R.S. Infotainment engaged Photon Factory to produce an untitled Tamil film. The agreement contemplated commencement of production on December 10, 2008 and completion of the first print by April 5, 2009. R.S. Infotainment agreed to provide funding of ₹13.5 crore for the project.

R.S. Infotainment maintained that it paid ₹4.25 crore under the agreement. It contended that the film was never commenced and sought damages for breach of contract.

Photon Factory and Menon contended that R.S. Infotainment failed to make subsequent instalment payments in accordance with the agreed schedule. They maintained that the money received was spent on artist advances, location scouting, promotional activities and other expenses connected with the project. They further claimed that uncertainty over funding caused artists associated with the film to withdraw. According to them, the project was consequently shelved.

The filmmakers also argued that the project was later revived with funds infused by Photon Kathaas Production Private Limited. They contended that it was completed and released in December 2012 as Nee Thane En Pon Vasantham.

Rejecting those submissions, the division bench held that the filmmakers had failed to produce evidence showing that the film contemplated under the 2008 agreement had ever commenced.

"The defendants have not produced any tangible evidence to prove that the film under Ex.P.1 was ever commenced," the Court held.

The bench found that the documents relied upon by the filmmakers did not establish that the vouchers, bills or other materials produced by them related to the film covered by the 2008 agreement. It also noted that a separate agreement existed in relation to *Nee Thane En Pon Vasantham*.

As regards the conduct of the parties, the Court observed: "only with a deliberate intention of avoiding the contract with the plaintiff, the said defendants have changed their respective roles to other firms only to avoid payments to the plaintiff."

"Without commencing the film, the defendants 1, 3 & 4 are not entitled for retention of the amount of Rs.4.25 Crores," the Court held while upholding the decree directing repayment of the amount with interest.