The Madras High Court has dismissed an appeal filed by renowned filmmaker Gautham Vasudev Menon, upholding a 2022 order that directs him to repay INR 4.25 crore to a production house. The ruling, delivered on Monday, March 23, 2026, marks the latest development in a legal battle spanning over a decade concerning a film project that never commenced. Along with the principal amount, Menon and his partnership firm, Photon Factory, are required to pay 12% annual interest dating back to 2010. ‘Euphoria’: Here’s Everything You Need To Know About Sara Arjun’s Telugu Film.

Madras HC Orders Gautham Vasudev Menon to Pay INR 4.25 Crore to Producer

A Division Bench comprising Justices P. Velmurugan and K Govindarajan Thilakavadi refused to interfere with a previous judgment issued by a single judge in April 2022. The court affirmed that the filmmaker is liable to return the funds received from R.S. Infotainment, led by producer S Elred Kumar. The dispute stems from a 2008 agreement for a Tamil film project, then referred to as "Production No. 6." According to court records, RS Infotainment had paid INR 4.25 crore in various instalments to Photon Factory. However, the production failed to take off within the agreed timeline.

Details of the Legal Dispute

The original contract, signed on November 27, 2008, stipulated a total budget of ₹13.5 crore. The agreement required the film to be completed by April 2009. When the project stalled, the producers granted an extension in 2010, but the film remained unmade, leading R.S. Infotainment to file a civil suit in 2013. In his defence, Menon argued that the producer had not fulfilled the total financial commitment and claimed the project eventually evolved into the 2012 film Neethaane En Ponvasantham. The court rejected this argument, noting that the 2012 film was produced under a separate agreement signed in 2011 and was unrelated to the 2008 contract. Rajpal Yadav Granted Extended Relief by Delhi High Court in Cheque Bounce Case.

Final Judgment and Costs

The High Court observed that there was no evidence to prove that the INR 4.25 crore was utilised for any project related to the plaintiff. Consequently, the bench upheld the directive for the repayment of the principal amount with 12% interest per annum effective from May 2010. Additionally, the court ordered Menon and his firm to pay INR 12 lakh in litigation costs. This includes approximately INR 9.57 lakh toward court fees and INR 2.5 lakh in legal fees, bringing a significant conclusion to the long-standing financial disagreement.

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(The above story first appeared on LatestLY on Mar 24, 2026 10:29 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).