Summary of this article
Gautham Vasudev Menon has lost the case in the Madras High Court related to a refund over an unmade film.
A Division Bench dismissed Menon's appeal against a single judge’s order to pay Rs 4.25 crore to RS Infotainment with interest at the rate of 12% per annum from May 2010.
A civil suit filed by the production house in 2013, alleging Menon had not completed an untitled movie.
The Madras High Court on Monday (March 23, 2026) directed filmmaker Gautham Vasudev Menon and his firm Photon Factory to refund Rs 4.25 crore with 12% interest to a film financier. The court dismissed an appeal filed jointly by Menon and his production entity against a 2022 single judge’s order directing repayment with interest from May 11, 2010, till realisation to RS Infotainment led by S. Elred Kumar.
Gautham Menon financier refund case
A Division Bench of Justices P. Velmurugan and K. Govindarajan Thilakavadi rejected the appeal and upheld the order passed by Justice Senthilkumar Ramamoorthy on April 5, 2022. According to The Hindu, the single judge’s order was passed on a civil suit filed by RS Infotainment in 2013, alleging Menon had not completed a movie despite receiving funds.
According to Bar and Bench, the Division Bench, in its order, said, "We are of the considered view that there is no infirmity found in the judgment and decree passed by the learned Single Judge, warrants any interference by this Court."
About Gautham Menon's unmade film dispute
The case dates back to 2008, related to an agreement for the untitled film, Production No.6. Under the agreement, RS Infotainment had agreed to finance Rs 13.5 crore, and the production was scheduled to start in December of the same year and expected to be wrapped up by April 2009.
The financier paid Rs 4.25 crore, including an advance of Rs 2.5 crore. But it later sued for recovery of Rs 9.53 crore, alleging that the makers failed to start production despite receiving funds.
The producers claimed that the financier had defaulted in making payments, which halted the project. They argued that only Rs 4.25 crore had been paid out of Rs 13.5 crore, due to which they had to shelve it.
They also claimed that the funds had been utilised for production-related expenses, and the film was later revived and released as Nee Thane En Pon Vasantham.
What the court said
The High Court, rejecting the defence of the producers, said, "The defendants have not produced any tangible and valuable evidence to prove that the film was ever commenced."
“The defendants failed to establish that the vouchers and bills are related to the agreed film," the Bench ruled.
It also rejected the contention that Nee Thane En Pon Vasantham fulfilled the contractual obligation. The court remarked that "only with a deliberate intention of avoiding the contract with the plaintiff, the said defendants have changed their respective roles to other firms only to avoid payments to the plaintiff."
Concluding the hearing, the Madras HC said that the producers had committed a breach of contract by failing to start production despite receiving funds from the financier.
