Supreme Court Quashes Criminal Case Against Film Producer Over Unpaid Debt

New Delhi: On Thursday, the Supreme Court quashed a criminal case of cheating filed against a film producer who failed to repay a debt to a financier. Judge પી.એસ. Narasimha and Justice Manoj Misra said that, in our view, the Madras High Court had ignored the fact that film production is a high-risk business. One cannot be sure whether a film will make a profit or flop. The Bench further said that if a person agrees to receive a share of the profits in return for an investment in a film, it also carries the risk of negligible returns. According to the Court, an important factor in determining the nature of the transaction between the parties was whether the investor should be permitted to initiate criminal proceedings or pursue criminal remedies. Unfortunately, the High Court had ignored this important aspect. The Supreme Court Bench noted that in establishing the offence of cheating, the promise, or promise must be made to the Madras High Court to set aside the order.