HC dismisses Firoz Nadiadwala's plea to quash ₹24cr suit
What's the story
The Bombay High Court has dismissed a petition by filmmaker Firoz A Nadiadwala, seeking to quash a commercial suit of ₹24cr against him.
The suit was filed by businessman Anil Dhanraj Jethani over a financing agreement for an unnamed film. Jethani alleged that Nadiadwala failed to pay dues as per their agreement.
The court ruled that the absence of formal service of court summons cannot invalidate the case if the defendant has appointed counsel and participated in proceedings.
Legal reasoning
What the court said
Justice Abhay Ahuja noted that Nadiadwala was represented by a senior advocate in earlier hearings, suggesting he knew of the litigation, reported Bollywood Hungama.
Nadiadwala's counsel observed that Jethani had failed to initiate or serve a writ of summons for over seven years, and argued that the financing agreement was yet to be signed by one party, raising questions about its enforceability.
Objections raised
Nadiadwala contended that all subsequent orders were void
Nadiadwala subsequently filed an application seeking dismissal of the suit, arguing that no writ of summons had at any point been issued.
He also contended that all subsequent orders, including a 2015 consent order allowing Jethani to withdraw ₹12.5cr deposited by another defendant, were deemed void under the Civil Procedure Code (CPC).
The court dismissed his application, stating that his earlier participation demonstrated knowledge of the proceedings and satisfied the law's underlying purpose.
Future proceedings
Suit now proceeds before the commercial court
The suit will now proceed before the commercial court.
Both parties have been directed to cooperate to ensure the case progresses toward trial without unnecessary delays.
The ongoing litigation could potentially affect financing and distribution plans for Nadiadwala's forthcoming movie Welcome to the Jungle, which was originally set for a December 28, 2024, release but has since been delayed.