Ivy Entertainment Private Limited vs. 14 Reels Plus LLP & Ors.
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The plaintiff, Ivy Entertainment Private Limited, and defendants 1-3 (14 Reels Plus LLP & Ors.) entered into a Co-Production Agreement on May 29, 2025, for the film 'Akhanda 11'. The plaintiff had paid Rs. 50 Crores to Defendant No. 1. The agreement stipulated that the plaintiff would recoup the investment amount plus 12% interest from the non-theatrical rights revenue. As of the order date, the plaintiff had recouped Rs. 24,56,25,000/-. The defendants undertook to pay the balance consideration of Rs. 25,43,75,000/- by December 3, 2025, subject to TDS. Defendant No. 1 also undertook to pay the entire interest on the investment amount along with the applicable GST by December 31, 2025. The parties submitted a joint proposal to the Court, which was recorded in an order dated November 28, 2025. The present order notes that the settlement terms have been complied with.
Held
The Court held that the parties had complied with the joint proposal that was recorded in the order dated November 28, 2025. The plaintiff's counsel confirmed that all dues had been settled. Consequently, the suit was disposed of in terms of the joint proposal. The Court further directed the Registry to issue a certificate for a refund of 100% of the court fees in favor of the plaintiff, in accordance with Section 16 of the Court Fees Act, 1870, as the matter was settled at a nascent stage. The operative direction was to draw up the decree accordingly.
Key Issues
1. Whether the parties have complied with the joint proposal recorded in the order dated November 28, 2025, concerning the payment of balance consideration, interest, and applicable GST? Petitioner's Contention: The learned counsel for the plaintiff submitted that nothing remains due and payable by the defendants, indicating compliance with the joint proposal. Revenue/State's Contention: No specific contention was recorded for the revenue or state in this matter, as it appears to be a commercial dispute settled between private parties. The judgment does not record any argument from the revenue or state.
Sections Cited
Section 16
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Cause title — parties, addresses and appearances
O R D E R %
2026
Learned counsel for the parties submits that in terms of the joint proposal, which was recorded in the order dated 28.11.2025, the settlement terms have been complied.
Learned counsel for the plaintiff submits that nothing remains due and payable so far as the defendant is concerned. For the purpose of convenience, the joint proposal extended on behalf of the parties and recorded in para 8 of the order dated 28.11.2025 is extracted hereunder:
“8. When the matter was taken up after Passover, the learned Senior Counsel for the Plaintiff and the learned Counsel for the Defendants submitted the below Joint Proposal on behalf of the Parties:
“JOINT PROPOSAL ON BEHALF OF THE PARTIES
As per the Co-Production Agreement slated May 29, 2025 (“Agreement”), executed between the Plaintiff and Defendant Nos. 1 for the film Akhanda 11 (“Film”), the Plaintiff had paid Defendant No.1 Rs.50 Crores. It was agreed that the Investment This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/01/2026 at 12:06:57
Amount together with interest at the rate of 12%would be recouped by the Plaintiff from the revenues arising from the exploitation of non-theatrical Rights in the Film upon the release of the Film. The Plaintiff has recouped an amount of Rs.24,56,25,000/- till date and Defendant Nos. 1 to 3 undertake to pay an amount of Rs.25,43,75,000/-(Rupees Twenty-Five Crores Forty-Three Lakh Seventy-Five Thousand only) ("Balance Consideration") on or before December 03, 2025 (subject to deduction of TDS).
Upon receipt of Balance Consideration, the Plaintiff agrees to issue requisite NOC under the terms of the Agreement, for theatrical release of the Film, scheduled for December 05, 2025. In case of failure of Defendant Nos. 1 to 3 to pay the Balance Consideration, Defendant Nos. 1 to 3 undertake to postpone the theatrical release of the Film, from December 05, 2025, to a later date, i.e. after the payment of the Balance Consideration.
Defendant No. 1 undertakes to pay the entire interest on the Investment Amount under the Agreement with applicable GST amount on or before December 31, 2025.”
Since the payments as captured in the joint proposal noted above have already been defrayed, the suit can be disposed of.
Accordingly, the suit is disposed of in terms of the joint proposal having been worked out and complied with. The decree shall be drawn up accordingly.
Since the matter was at a nascent stage, i.e., the second or third hearing when it was settled, the plaintiff would be entitled to refund of the complete court fees. Accordingly, the Registry is directed to issue a certificate of refund of 100% of the Court Fees in favour of the plaintiff, in terms of Section 16 of the Court Fees Act, 1870 after completing the formalities in accordance with the rules.
TUSHAR RAO GEDELA, J JANUARY 5, 2026 yrj
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 07/01/2026 at 12:06:57
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.