By Shailesh K Seran [ May 13, 2009 ]
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Priyadarshans win Four Frames Theatre case!

Noted film maker Priyadarshan and his wife Lissy Priyadarshan purchased the once-famous Good Luck preview theatre in Chennai in an auction conducted by the Income Tax department a few years back. He then renovated the theatre into a state-of-the-art sound studio and preview theatre. Since then, Four Frames is one of the most-preferred theatres in Chennai for production companies and directors to screen their previews and press shows. After the auction sale, the Priyadarshans faced a lot of stress due to the case filed against them by M/s GV Films. Having won the case, Mrs. Priyadarshan met the media on 13th May to issue an official press release.

The press release states that Mr. and Mrs. Priyadarshan became the successful bidders in the auction sale of the Good Luck theatre that belonging to M/s Sujatha Films Pvt. Ltd. which was in arrears of income tax of about Rs.19 crores. But to prevent the IT department from bringing the property for sale, M/s GV Films, claiming to be a tenant of M/s Sujatha Films Pvt. Ltd., adopted all dilatory tactics and prevented the department from delivering possession of the property to the Priyadarshans, the new owners after the auction.

So the matter was referred to Mr. Krishnamoorthy, tax recovery officer, for giving his findings under what authority M/s GV Films was continuing to occupy the property which was sold in auction. After investigating, Mr. Krishnamoorthy submitted the finding that all documents filed by M/s GV Films to prove their tenancy rights were fabricated and prepared to avoid not only payment of income tax by M/s Sujatha Films, but also by M/s GV Films, which was holding the property claiming ownership on fictitious grounds. The tax recovery officer also stated in his finding that the directors of M/s Sujatha Films and GV Films were common. The wife representing the defaulter, i.e. M/s Sujatha Films as lessor and GV Films, represented by the husband as lessee, had created the alleged lease deeds.

The case was then dealt with by the Madras High Court and the Supreme Court. Mrs. Lissy also said during the press meet that the entire legal battle was deliberately fought by M/s GV Films with a view either to cling on to the theatre property illegally or to coerce the Priyadarshans (being the auction purchaser) to part with huge amounts, almost holding them to ransom. On all these counts, the new directors of M/s GV Films failed. It is also pertinent to note that M/s Sujatha Films became defunct several years ago.

She said that during the period of litigation, the Priyadarshans have undergone an enormous amount of mental agony even after paying the auction price to the IT department. She opined that because of the attitude of M/s GV Films and its present directors, they had to undergo the ordeal. She is very happy to have won the case and at last justice has been rendered to them. She also added that they are extremely relieved and glad that the four-year battle is over. It is not only a victory for the Priyadarshans, but also a major victory for the Income Tax department. She said that this battle has strengthened their belief in the country's judiciary system. Galatta feels happy for the Priyadarshans!