The Madras High Court has passed an interim order restraining actor/producer R. Radikaa Sarathkumar and her partners in Magic Frames, a film producing company, from in any manner encumbering or alienating two flats owned by her in T. Nagar and 40 cents of land in Tenkasi.
Besides the interim order, Justice R. Mahadevan also ordered notice returnable by June 2 to Ms. Radikaa, her husband R. Sarathkumar and Listin Stephenon the suit moved by Radiance Media Private Limited, a film financing company based in Chennai.
According to the plaintiff, the trio borrowed ₹1.50 crore as a loan for producing a film titled ‘Production No. 4’ in November 2014 after executing a loan agreement at 30% interest per annum returnable by March 31, 2015.
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The borrowers failed to repay the loan with interest as agreed; instead, they approached the lender again with a request to lend more money along with the outstanding loan amount with a promise to provide security by mortgaging immovable properties owned by Ms. Radikaa.
On January 21, 2016, a mortgage deed was executed between the lender and the borrowers for ₹3.40 crore which includes the outstanding loan amount and interest (₹2.40 crore). As per the fresh agreement, the principal amount is payable by on or before June 18, 2018, and the interest at 18% per annum was payable on a monthly basis. But as the borrowers failed to pay interest on time, it accumulated and the total outstanding amount exceeded the value of properties pledged as security, prompting the lender to approach the court.