MUMBAI: Imax Corporation has won an arbitration case against Subhash Chandra’s E-City Entertainment, which will result in increased revenues for the company of more than $11 million.
A panel of the International Court of Arbitration of the International Chamber of Commerce found unanimously in its favor an arbitration against E-City Entertainment Limited (E-City), and awarded Imax $9.4 million, plus interest and costs, which Imax believes will increase the award to in excess of $11 million in the aggregate.
The arbitration, which took place in London and included three separate witness hearings and extensive legal briefing, involved an agreement under which Imax awarded E-City rights to develop a minimum of six Imax theatres in India.
E-City subsequently claimed that the agreement was a non-binding term sheet, that the amount of damages that Imax was seeking for lost profits was excessive and that Imax had failed to mitigate its damages.
The panel found that the agreement was fully enforceable, that E-City had breached its obligations under that agreement and awarded Imax all of the lost profits that it sought under the agreement.
E-City is affiliated with Essel Group, which houses the Hindi general entertainment channel Zee TV. E-City operates movie theatres as part of entertainment centers throughout India under the names Fun Cinemas or Fun-Republic.