The Bombay High Court has ruled in favour of Ultra Distributors Pvt. Ltd. in a long-running dispute over the video and allied rights of the film Nehle Pe Dehla. Justice Arif S. Doctor held that the 31 March 2005 assignment in favour of Ultra Distributors was valid and binding.
The Court also awarded Rs 1,66,75,000 as compensatory damages, Rs 25 lakh as punitive damages and Rs 15 lakh towards litigation costs against Dhariwal Films Pvt. Ltd.
Background of the Case
The dispute arose from competing claims over the video copyrights of Nehle Pe Dehla. Dhariwal Films had executed an Assignment Agreement with Ultra Distributors on 31 March 2005 for eight years for a total consideration of Rs 42,51,000. Ultra had paid Rs 10,01,000 under the agreement.
A rival claim was raised by Defendant No. 2, which relied on earlier agreements dated 30 May 2002 and 28 August 2002. The Court noted that the rival claim was supported by a chain of documents whose consistency and validity were disputed during the proceedings.
Justice Doctor found that Dhariwal Films had represented that an earlier assignment in favour of Showman Exports had been cancelled. The Court also relied on subsequent admissions, including signed Consent Terms in which Dhariwal Films had acknowledged that Ultra’s 2005 assignment was “binding, valid and subsisting.”
On the master tapes, the Court found that Dhariwal Films had failed to establish that commercially exploitable Digibeta tapes were supplied as required under the agreement. The plaintiff’s evidence on this point was largely unchallenged.
The Court further held that Ultra had established a sufficient basis for compensatory damages of Rs 1,66,75,000. It found that the conduct of Defendant No. 1 also justified punitive damages of Rs 25 lakh.
Regarding Defendant No. 2, the Court held that it had failed to prove a clear and consistent chain of title to the film’s video rights. Consequently, Issues 6, 7 and 8 were answered against Defendant No. 2.
The Bombay High Court decreed the suit in terms of prayer clause (a), recognising the rights flowing from Ultra Distributors’ 31 March 2005 assignment. Dhariwal Films was directed to pay Rs 1,66,75,000 in damages, Rs 25 lakh in punitive damages and Rs 15 lakh as costs.
If these amounts were not paid within eight weeks, interest at 8% would apply. The suit was accordingly disposed of.
Case Details
- Case Title: Ultra Distributors Pvt. Ltd. v. M/s. Dhariwal Films Pvt. Ltd. and 2 Ors.
- Case Number: Commercial IP Suit No. 26 of 2007
- Judge: Justice Arif S. Doctor
- Decision Date: 29 August 2026
