The production house has been involved in a suit with Malaysia based company DMY Creations that has claimed Rs23.70 crore in unpaid dues.
Madras HC asks Darbar producers, Lyca Productions, to respond to notice on unpaid dues
Mumbai - 31 Dec 2019 12:08 IST
With a week to go for a major Rajinikanth release, Lyca Productions has run into some unwanted trouble. The production house has been issued notice by the Madras high court asking for a reply with regards to the unpaid dues to Malaysian entertainment group, DMY Creations.
The Newsminute.com reported that the court had asked the production house to respond to a petition seeking a ban on their upcoming release, Darbar (2020). The film, featuring Rajinikanth, is set to have a worldwide release on 9 January.
The report stated that the suit filed relates to DMY Creations who claim to have loaned Rs12 crore at the rate of 30% per annum to Lyca Productions during the production of the Rajinikanth and Akshay Kumar-starrer 2.0 (2018). The amount due is allegedly marked at Rs23.70 crore as of date.
DMY Creations have also worked for the release of Sye Raa Narasimha Reddy (2019), Kaithi (2019), Viswasam (2019), among others.
The petition added that the company had bought distribution rights for 2.0 from Lyca Productions for the cost of over Rs20 crore.
The notice was issued by justice Govindaraj of Madras high court to Lyca Productions asking for a response.
The production house is currently readying the release of their third outing with Rajinikanth, Darbar. After Kaala (2018) and 2.0 (2018), the film marks one of the biggest releases of the year in Tamil cinema. Directed by AR Murugadoss, the film also features Nayanthara, Prateik Babbar and Suniel Shetty.