On July 3, the apex court had pulled up Latha for not complying with her undertaking given before the court to pay Rs 6.2 crore to AD-Bureau Advertising Pvt Ltd.
The advertising agency in its complaint, had alleged that they had ventured in the post-production of the 2014 film Kochadaiiyaan, which was produced by Mediaone Global Entertainment Ltd, on Latha’s personal guarantee and had funded Rs 10 crore for it. Latha was the director of the production company.
AD-Bureau alleged that Mediaone Global Entertainment Ltd was to refund Rs 10 crore along with Rs 1.2 crore as guaranteed profit, but the amount was not refunded.
The Supreme Court set aside the Karnataka High Court order that cancelled legal proceedings against Latha Rajnikanth.
A bench comprising of Justices Ranjan Gogoi, R Banumathi and Navin Sinha said the high court was not justified in cancelling the proceedings against Latha, which were initiated following a trial court’s order on the complaint by the advertising agency.
“This is a case which should have gone for trial. You (Latha) can apply for discharge at an appropriate stage,” the bench said.
The bench was hearing a plea filed by AD-bureau against the March 10, 2016 order of the Karnataka High Court quashing the proceedings against Latha, which were initiated after a trial court.
On February 20, the apex court had said if Mediaone did not pay the dues to the advertising agency AD-Bureau Advertising Pvt Ltd within three months, then Latha would have to pay the amount as per undertaking given by her.
The court in its February order had stated that “Special leave petition is kept pending for three months. Within the aforesaid period of three months if the company - Mediaone Global Entertainment Ltd - does not pay the balance dues, the respondent-accused (Latha Rajanikanth) has undertaken before the court to pay the amount due.”
(With inputs from agencies)