The Bombay High Court has affirmed that the inability to precisely quantify losses does not preclude the awarding of compensation when the existence of a loss is substantiated. This was established in the case of Ultra Distributors Pvt Ltd v. Dhariwal Films Pvt Ltd & Ors, where Justice Arif S Doctor ruled on August 29 that Dhariwal Films Pvt. Ltd. must compensate Ultra Distributors Pvt. Ltd. approximately ₹1.9 crores in a protracted copyright dispute involving the film ‘Nehle Pe Dehla’.
In his judgment, Justice Doctor emphasized, “Just because in a given case the Plaintiff is unable to prove the precise quantum of loss or damages with exactitude, that would not, in an appropriate case, preclude an award of damages where the fact of loss is established and the available evidence furnishes a reasonable basis for the assessment of damages.” The court found Dhariwal Films guilty of commercial dishonesty by selling the same video rights to multiple parties.
The court highlighted the inconsistencies in Dhariwal Films’ legal positions across various proceedings, which undermined their credibility. “The record plainly discloses that Defendant No. 1 has, at different points in time, taken different and plainly contradictory stands with regard to the creation of competing rights in favour of the Plaintiff and Defendant No. 2 in respect of the same Film… This, in my view, speaks volumes in respect of the lack of credibility and commercial dishonesty on the part of Defendant No. 1,” the court noted.
The lawsuit, initiated by Ultra Distributors in 2007, arose from a 2005 agreement with Dhariwal Films for exclusive video, cable TV, and video-on-demand rights for the film ‘Nehle Pe Dehla’ over eight years. Ultra had initially paid ₹10.01 lakh out of a total ₹42.51 lakh but did not receive master tapes of exploitable quality, as Dhariwal permitted another distributor to exploit the same rights.
The judgment concluded that Dhariwal Films’ conduct constituted misrepresentation and cheating, warranting punitive damages to deter such contractual breaches. Justice Doctor applied a “rough and ready” assessment, relying on unfiled consent terms where Dhariwal valued the rights at ₹82.51 lakh. After deducting the outstanding consideration, Justice Doctor calculated ₹50.01 lakh as “expectation damages” to restore Ultra to their anticipated economic position had the contract been fulfilled.
Further, the court accepted the proven publicity expenses and unrefuted witness statements, affirming the full compensatory claim of ₹1.66 crore. Consequently, the court decreed that Dhariwal Films should pay ₹1.66 crore in compensatory damages, ₹25 lakh in punitive damages, and ₹15 lakh in legal expenses within eight weeks.
Representing Ultra Distributors, Advocates Rashmin Khandekar, Pranav Nair, Jyoti Ghag, and Shailesh Prajapati, briefed by Dua Associates, appeared in court. Advocates Amit Dubey, Abdullah Shaikh, and Ashok M Saraogi represented Dhariwal Films Pvt Ltd.
