The Supreme Court of India has ruled that failure to earn profits in film production cannot be considered as cheating, quashing a criminal case against a film producer in Chennai.
The court, in a judgment on Thursday, said that movie making is a high-risk business and no one can be sure whether a movie would earn profits or be a flop.
The case involved V Ganesan, who failed to get relief from the Madras high court, and S Senthil Babu, who lent him money on the promise of a share in profits.
When Babu failed to get his money, he approached the police and filed a case of cheating and criminal breach of trust.
The Supreme Court bench, however, said that there was nothing to indicate that Ganesan had a dishonest intention from the very beginning and that the movie was indeed made.
The court also ruled that the dishonour of a post-dated cheque by itself is not sufficient to presume the existence of a dishonest intention on the part of its drawer.
