Tamil film star D. Sivakarthikeyan has initiated legal action against producer K.E. Gnanavelraja of Studio Green Films, alleging a significant breach of contract related to his 2019 film "Mr. Local." The actor has filed a petition in the Madras High Court, claiming he is yet to receive his complete remuneration of Rs. 15 crore, with a substantial Rs. 4 crore still outstanding years after the film's release.
Contractual Agreement and Alleged Payment Default
According to the petition, Sivakarthikeyan entered into a formal agreement with the producer on July 6, 2018, to play the lead role in "Mr. Local." The contract stipulated a total payment of Rs. 15 crore, to be disbursed in multiple installments. A crucial clause stated that a final installment of Rs. 1 crore was due before the film's theatrical release. The actor contends that this final pre-release payment was never made, marking the beginning of the dispute.
Despite "Mr. Local" hitting cinemas on May 17, 2019, Sivakarthikeyan alleges that only Rs. 11 crore had been paid by that date. The remaining Rs. 4 crore has not been settled despite numerous reminders and follow-ups from the actor's side. This prolonged non-payment ultimately forced him to seek judicial intervention to recover his dues.
Income Tax Notice Adds Financial Burden
The financial complication deepened when Sivakarthikeyan received a notice from the Income Tax Department on February 1 of this year. The notice was issued because the producer, Studio Green Films, allegedly failed to deposit the Tax Deducted at Source (TDS) for the Rs. 11 crore already paid to the actor.
Although Sivakarthikeyan challenged this notice with a separate writ petition, the tax authorities proceeded to deduct Rs. 91 lakh from his bank account. This amount covered his tax liability for the assessment years 2019–20 and 2020–21. This deduction, stemming from the producer's alleged negligence, directly prompted the current comprehensive lawsuit.
Legal Plea to Restrain Producer's Projects
In his legal filing, Sivakarthikeyan has requested the court to impose restrictions on producer K.E. Gnanavelraja to secure the pending payment. Specifically, he has urged the court to restrain the producer from making further investments in his ongoing film projects, which include 'Rebel,' 'Chiyan 61,' and 'Pathu Thala.'
Furthermore, the actor has sought an injunction to prevent the producer from transferring any rights associated with these films to theatrical distributors or OTT platforms until their financial dispute is conclusively resolved. This move is intended to create pressure for an out-of-court settlement or ensure the availability of assets against which the dues can be recovered.
Justice M. Sundar of the Madras High Court has listed the matter for hearing. The case is expected to highlight persistent issues of payment transparency and contractual adherence within the Indian film industry, especially concerning agreements between actors and producers.
