In Brief
The plaintiffs, film producers and distributors, assigned satellite broadcasting rights in 16 Hindi films to others for a 9-year period from December 1994. In 2003, they became aware of rival claims to these rights and sued for a declaration and injunction. The trial court dismissed the suit as barred by limitation, holding that the cause of action arose in 1995. The High Court reversed this, finding the suit was timely since the cause of action arose only in 2003 when the plaintiffs' assignment period ended. The Supreme Court upheld the High Court, holding that a cause of action accrues only when there is a clear and unequivocal threat to a right—not during a period when the party has voluntarily parted with that right.
The lawyer headnote and full judgment text are available to registered users.