Madras HC directs Shivaji Ganesan's son Ramkumar to renounce ownership claims on Chennai property

Justice Abdul Quddhose issued the directive while hearing a plea filed by actor Prabhu Ganesan, the younger son of Sivaji Ganesan, who sought the removal of an attachment order placed on Annai Illam, which had been enacted due to the non-repayment of a loan by Ram Kumar's son, Dusshyanth, and his wife Abirami.

Senior counsel P.R. Raman, representing Prabhu Ganesan, argued that the property was legally transferred to his client and, therefore, should not be subject to recovery proceedings related to a loan he did not borrow. He asserted that Prabhu Ganesan's property rights could not be encumbered by obligations incurred by his nephew.

Counsel appearing for Ram Kumar informed the court that his client no longer holds any share in the property.

Taking this into account, Justice Quddhose directed Ram Kumar to submit an affidavit formally renouncing any present or future ownership claim over Annai Illam. The matter has been adjourned to Tuesday for further proceedings.

The legal dispute stems from a financial agreement between Dhanabakkiam Enterprises and Eshan Productions, a film company owned by Dusshyanth and his wife.

According to Akshay Sarin, a partner at Dhanabakkiam Enterprises, a loan of Rs 3.75 crore was extended to Eshan Productions in 2017 for the production of the film "Jagajala Killadi".

When the couple failed to repay the loan, the matter was taken to arbitration.

On May 4, 2024, arbitrator Justice T. Ravindran (retired) ruled in favour of Dhanabakkiam Enterprises, ordering the repayment of Rs 9.02 crore, which includes the principal amount and 30 per cent interest, with an additional 12 per cent annual interest until full settlement.

The arbitrator also granted Sarin the right to exploit and sell the film to recover the dues. However, the film was reportedly incomplete and not in a saleable format, prompting Sarin to file an execution petition before the High Court.

The petition sought to recover dues by attaching Ram Kumar's supposed one-fourth share in Annai Illam, a sprawling property spread over approximately 53,240 square feet.

Despite multiple opportunities for an amicable settlement through mediation, negotiations failed.

While Dhanabakkiam Enterprises demanded Rs 9.39 crore in total, the actor's family offered a one-time settlement of only Rs 2.75 crore in addition to prior payments. No counter-affidavit was filed by the family to contest the execution petition on its merits.

Consequently, Justice Quddhose ordered the attachment of 13,310 square feet of Annai Illam and instructed the petitioner to communicate the order to the T. Nagar Sub-Registrar. The Sub-Registrar subsequently recorded the attachment in the property's encumbrance certificate. Dhanabakkiam Enterprises has valued the entire property at Rs 88.5 crore, estimating Ram Kumar's one-fourth share at ₹22.15 crore--an amount considered sufficient to recover the loan dues.