In a significant development, the Bombay High Court on Monday dismissed a plea filed by filmmaker Firoz A. Nadiadwala seeking to quash a ₹24-crore commercial suit against him. The suit, filed by businessman Anil Dhanraj Jethani, relates to a financing agreement for a film project dating back to July 2015.
The Case Background
Jethani had agreed to finance one of Nadiadwala’s films but later moved the court in August 2015, alleging non-payment of dues amounting to ₹24 crore. As per a consent order passed on September 1, 2015, Jethani was allowed to withdraw ₹12.5 crore deposited by another defendant, while Nadiadwala was expected to clear the remaining balance before the release of his upcoming movie “Welcome to the Jungle”. The film, originally scheduled for December 28, 2024, has since been delayed.
Nadiadwala’s Argument
The filmmaker contended that he had never been formally served a writ of summons, thereby rendering all subsequent legal orders—including the consent order—invalid under the Civil Procedure Code. His legal team also argued that the financing agreement lacked a signature from one party, challenging its enforceability.
Court’s Response
Justice Abhay Ahuja rejected Nadiadwala’s plea, noting that:
- He had already appointed lawyers and was represented by senior counsel during early court proceedings.
- His legal team had participated in hearings on August 24 and 28, 2015.
- He had received copies of the plaint and supporting documents as early as August 20, 2015.
The judge emphasized that under the law, once a party appears or files a vakalatnama, formal service of summons is no longer required.
Jethani’s Counsel Alleges Bad Faith
In response, Jethani’s counsel accused Nadiadwala of acting in bad faith and attempting to evade a court-acknowledged financial obligation.
The court ultimately ruled that Nadiadwala’s active participation in the case over the years nullified his claim of improper service and upheld the validity of the ongoing proceedings. The suit will now proceed under the framework of the Commercial Courts Act, enacted in October 2015.
