Madras HC Orders Ram Kumar to Waive Claims on Chennai Estate
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Synopsis
The Madras High Court has mandated Ram Kumar, son of the late Sivaji Ganesan, to renounce any claims to 'Annai Illam', following a legal dispute over financial obligations tied to a loan default by his son. Prabhu Ganesan, his brother, seeks to clear the property of encumbrances.
Key Takeaways
- The Madras High Court has instructed Ram Kumar to renounce claims to Annai Illam.
- Prabhu Ganesan initiated the petition to remove the attachment order.
- The property is embroiled in a dispute due to a loan default by Ram Kumar’s son.
- Justice Quddhose mandated an affidavit to formalize the renouncement.
- Dhanabakkiam Enterprises is pursuing recovery of significant dues.
Chennai, April 7 (NationPress) The Madras High Court instructed Ram Kumar, the eldest son of the iconic Tamil actor, the late Sivaji Ganesan, to file an affidavit declaring that he will not lay claim to 'Annai Illam', the famous bungalow established by his father in Chennai's T. Nagar.
Justice Abdul Quddhose issued this order while addressing a petition initiated by actor Prabhu Ganesan, the younger son of Sivaji Ganesan. He sought the annulment of an attachment order on Annai Illam, which was implemented due to a loan default by Ram Kumar’s son, Dusshyanth, and his spouse, Abirami.
Senior advocate P.R. Raman, representing Prabhu Ganesan, contended that the property had been legally assigned to his client and should not be subjected to recovery actions related to a loan he did not incur. He emphasized that Prabhu Ganesan’s property rights should remain unburdened by his nephew's financial obligations.
The attorney for Ram Kumar informed the court that his client no longer possesses any stake in the property.
Considering this information, Justice Quddhose instructed Ram Kumar to formally present an affidavit renouncing any current or future ownership claims over Annai Illam. The hearing has been postponed to Tuesday for additional proceedings.
This legal conflict originates from a financial agreement involving Dhanabakkiam Enterprises and Eshan Productions, a film company operated by Dusshyanth and Abirami.
As stated by Akshay Sarin, a partner at Dhanabakkiam Enterprises, a loan of ₹3.75 crore was granted to Eshan Productions in 2017 for the film 'Jagajala Killadi'.
After the couple defaulted on the loan, the issue was referred to arbitration.
On May 4, 2024, arbitrator Justice T. Ravindran (retired) ruled in favor of Dhanabakkiam Enterprises, mandating the repayment of ₹9.02 crore, which includes the principal and 30 percent interest, plus an additional 12 percent annual interest until the debt is fully settled.
The arbitrator also authorized Sarin to exploit and sell the film to recover the outstanding dues. However, the film was reportedly unfinished and not in a marketable condition, prompting Sarin to file an execution petition with the High Court.
This petition aimed to recover dues by attaching Ram Kumar’s supposed one-fourth interest in Annai Illam, a substantial property covering approximately 53,240 square feet.
Despite multiple chances for a peaceful resolution through mediation, negotiations were unsuccessful.
While Dhanabakkiam Enterprises claimed ₹9.39 crore in total, the actor’s family proposed a one-time settlement of only ₹2.75 crore alongside previous payments. No counter-affidavit was filed by the family to contest the execution petition substantively.
As a result, Justice Quddhose mandated the attachment of 13,310 square feet of Annai Illam and instructed the petitioner to notify the T. Nagar Sub-Registrar. The Sub-Registrar subsequently recorded the attachment in the property’s encumbrance certificate. Dhanabakkiam Enterprises has appraised the entire property at ₹88.5 crore, estimating Ram Kumar’s one-fourth share at ₹22.15 crore—an amount deemed adequate to recover the loan dues.
