Movie producer Firoz A Nadiadwala should proceed to defend a Rs 24 crores industrial declare after the Bombay Excessive Court docket dismissed his plea to have the swimsuit thrown out for need of formal service of summons.
Bombay HC refuses to quash Rs 24 crores swimsuit in opposition to filmmaker Firoz A Nadiadwala: Experiences
Why the “no‑summons” argument failed
Justice Abhay Ahuja dominated that after a defendant appoints counsel and actively participates in proceedings, technical non‑service of summons can’t be used to invalidate the case. Court docket information present Nadiadwala had been represented by a senior advocate in earlier hearings, indicating clear data of the litigation.
The dispute in a nutshell
- Financing settlement – On July 16, 2015, businessman Anil Dhanraj Jethani agreed to fund an unnamed Nadiadwala movie.
- Swimsuit filed – Jethani moved the Excessive Court docket on August 19, 2015, looking for restoration of Rs 24 crores, alleging unpaid dues.
- Consent order – A consent order dated September 1, 2015, allowed Jethani to withdraw Rs 12.5 crores deposited by one other defendant. The stability was to be paid by Nadiadwala earlier than the discharge of his upcoming movie Welcome to the Jungle, initially slated for December 28, 2024, however now delayed.
- Industrial Courts Act – After the Act took impact in October 2015, the matter was re‑registered as a industrial swimsuit.
Nadiadwala’s objections
The filmmaker later utilized to have the swimsuit dismissed, arguing that:
- No writ of summons had ever been served; therefore, all subsequent orders, together with the 2015 consent order, had been void beneath the Civil Process Code (CPC).
- No steps had been taken for greater than seven years to situation recent summons.
- The financing settlement lacked a signature from one get together, casting doubt on its enforceability.
Court docket’s reasoning
Justice Ahuja rejected these factors, noting that the CPC permits waiver of formal service if the defendant has already appeared via counsel. The decide added that Nadiadwala’s earlier participation demonstrated consciousness of the proceedings, satisfying the legislation’s underlying function of guaranteeing the defendant is aware of the case in opposition to him.
The swimsuit will proceed earlier than the industrial court docket. Each events have been advised to cooperate so the case can transfer towards trial with out additional delay.
It’s speculated that the continuing litigation may complicate financing and distribution plans for the third installment in Nadiadwala’s in style Welcome franchise. The comedy‑motion movie, introduced with a star‑studded ensemble, has but to lock a brand new launch date.
Additionally Learn: REVEALED: The REAL cause why Akshay Kumar’s Cape Of Good Movies and never Firoz A. Nadiadwallah sued Paresh Rawal for his sudden exit from Hera Pheri 3
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