'Are you ready to declare yourself bankrupt?': Court questions Vishal; actor gets temporary relief in Lyca case

The Madras High Court has granted temporary relief to actor Vishal by staying an earlier order directing him to pay ₹21.29 crore to Lyca Productions along with 30% annual interest. However, the court has now issued a fresh direction asking Vishal to deposit ₹10 crore as an interim measure while the case undergoes further scrutiny. Lyca has also been given four weeks to file its detailed response.

Lyca alleges breach of agreement after clearing Vishal’s loan

According to a report by News18, the dispute began after Lyca repaid a loan of ₹21.29 crore that Vishal had borrowed from Gopuram Films for his production house, Vishal Film Factory. As per their agreement, Lyca was to hold the rights to all films produced by Vishal until the entire amount was recovered.




However, Lyca later approached the court alleging that some film rights were marketed elsewhere in violation of this agreement. They demanded repayment of the amount along with interest, claiming a clear breach of contract.

Vishal challenges 30% interest order

A single-judge bench had earlier directed Vishal to repay the full amount with 30% interest per annum. Vishal’s legal team appealed this order, arguing that he had initially received only ₹15 crore and that the interest amount—now exceeding ₹40 crore—was “illegal” and amounted to “exploitation.”

During the appeal, Justices S. M. Subramaniam and Mohammed Shafiq asked, “Can a portion of the amount be deposited in court?” Vishal’s counsel further stated that, contrary to Lyca’s portrayal, the actor is not an extremely wealthy man.

Judges question Vishal’s financial status

Hearing the arguments, the judges posed a pointed question: “So, are you ready to declare yourself bankrupt?”

The bench observed that charging 30% interest appeared excessive and such terms could amount to exploitation. Subsequently, the High Court stayed the interest component of the earlier order, directed Vishal to deposit ₹10 crore in the court, and adjourned the case for further hearing.

On the work front, Vishal was last seen in 'Madha Gaja Raja'. The movie was directed by Sundar C and received decent reviews. Vishal's previous film 'Mark Antony' received good reviews from the audiences and turned out to be a superhit.

Disclaimer: This article is for informational purposes only and is based on reported news of court proceedings and legal claims. It does not constitute legal advice or a definitive statement on the outcome of the case. Readers should not rely solely on this information for making legal or commercial decisions.

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