Supreme Court Refuses To Interfere With ₹4.25 Crore Refund Order Against Filmmaker Gautham Menon Over Unmade Film

Kirit Singhania

17 July 2026 11:59 AM IST

  • Supreme Court Refuses To Interfere With ₹4.25 Crore Refund Order Against Filmmaker Gautham Menon Over Unmade Film

    The Supreme Court on Friday refused to interfere with the Madras High Court's judgment directing filmmaker Gautham Vasudev Menon and others to repay ₹4.25 crore with 12% interest to R.S. Infotainment in a dispute arising from a 2008 agreement to produce an untitled Tamil film.

    A bench of Justices J.B. Pardiwala and K. Vinod Chandran dismissed the special leave petition at the threshold. The Bench declined to interfere with the Madras High Court's March 23, 2026 judgment, which had upheld a decree in favour of R.S. Infotainment.

    The dispute arose from a November 27, 2008 agreement under which R.S. Infotainment agreed to fund ₹13.5 crore for an untitled Tamil film to be directed by Gautham Vasudev Menon through Photon Factory.

    R.S. Infotainment claimed it paid ₹4.25 crore under the agreement. It alleged that the agreed film never commenced despite repeated demands. According to the company, the filmmakers breached the agreement by failing to begin production.

    The filmmakers disputed the claim. They contended that the project stalled because R.S. Infotainment failed to release the remaining instalments under the funding schedule. According to them, the project was later revived through Photon Kathaas Production Pvt. Ltd. with fresh funding and was ultimately released in 2012 as Nee Thane En Pon Vasantham.

    The single judge directed Photon Factory, Gautham Vasudev Menon, and another defendant to repay ₹4.25 crore with interest at 12% per annum from May 11, 2010, along with costs.

    Dismissing the appeal, the Madras High Court Division Bench held that the filmmakers had failed to produce tangible evidence showing that the contracted film had ever commenced. It noted that the defendants had failed to establish that the bills, vouchers, CD and other documents relied upon by them related to the film covered by the 2008 agreement.

    The Division Bench also rejected the filmmakers' contention that Nee Thane En Pon Vasantham was the same project contemplated under the 2008 agreement. It found that the film was produced under a separate agreement executed in July 2011 with Photon Kathaas Pvt. Ltd. The Bench held that the later film had no connection with the 2008 agreement or its variation letter.

    The High Court further held that the defendants were not entitled to retain ₹4.25 crore without commencing the agreed film. Finding no infirmity in the Single Judge's decree, it upheld the direction to repay ₹4.25 crore with 12% interest and dismissed the appeal.

    Case Title :  PHOTON FACTORY vs RS INFOTAINMENT (P) LTDCase Number :  DIARY NO. 35943/2026
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