AVM Productions’ family dispute reaches Madras High Court

Aparna Guhan and Aruna Guhan of AVM. File
| Picture Credit score: R. Ravindran

The property dispute between the companions of family-owned AVM Productions, one among Tamil Nadu’s oldest movie manufacturing homes, has reached the Madras High Court, with one of many nice granddaughters of the founder A.V. Meiyappan insisting on partitioning the family properties.

Aparna Guhan Shyam, one of many twin daughters of M.S. Guhan, has filed a civil swimsuit within the High Court looking for one-fifth of the share within the family properties. She has additionally sought a everlasting injunction restraining AVM Studios from competing with AVM Productions within the movie enterprise.

What’s the dispute about?

Based on the plaintiff, AVM Productions was a partnership agency during which her paternal grandfather M. Saravanan (popularly referred to as AVM Saravanan) had 15% share, her father Mr. Guhan had 45% share, and her sister Aruna Guhan and herself had 20% shares every.

Claiming that her father had developed a hostile angle in the direction of her ever since she married an individual from one other caste, the plaintiff mentioned, he created a particular goal car (SPV) titled AVM Studios, with him holding 50% shares and her sister in addition to her grandfather holding 25% every.

Although the plaintiff was not included as a accomplice in AVM Studios created for carrying on similar enterprise corresponding to producing function movies, making net collection, working studios and allied actions, its partnership deed acknowledged that every one income and losses from the enterprise can be transferred to AVM Productions.

Fearing that the SPV had been created solely for the aim of creating AVM Productions undergo losses and in the end shut down, the plaintiff filed an software urging the courtroom to restrain AVM Studios from finishing up any type of enterprise exercise till the disposal of her swimsuit for partition.

When the applying was taken up for listening to by Justice R.M.T. Teekaa Raman, it was argued on behalf of Mr. Guhan that AVM Productions had become a loss-making firm solely due to the hyperactivity of the plaintiff who needed it to supply a film together with her husband as a hero.

It was the coverage of the corporate that none of its family members ought to act within the films to be produced by it and subsequently, the respondents refused to budge to her demand. She developed animosity in opposition to the family due to this and filed the current swimsuit for partition, the respondents mentioned.

The one decide was additionally informed that the family members have been constrained to drift AVM Studios as a result of the plaintiff refused to cooperate with the conduct of the day-to-day affairs of AVM Productions by refusing to signal the cheques and monetary statements on time.

After listening to each side, Justice Raman on January 10, 2025, granted the interim injunction, as hunted for, in opposition to AVM Studios. He noticed that, in any other case, the plaintiff can be put to hardship if the losses accrued by AVM Studios, during which she was not a accomplice, have been transferred to AVM Productions.

Permitting yet one more software filed by the plaintiff, the decide directed her father and sister to activate her official e-mail ID containing the AVM area title. He arrived at a conclusion that the applicant was entitled to an official e-mail ID in her capability as a shareholder.

Mr. Guhan has now filed two appeals difficult the interim orders handed by the one decide in favour of his daughter. A Division Bench of Justices S.M. Subramaniam and Ok. Rajasekar on Friday (February 21, 2025) ordered notices, returnable by three weeks, to Ms. Shyam on the 2 appeals, and directed the events to finish their pleadings by then.