Quick Summary: Ashok Chitra Mandir, represented by its partner Arun Baburao Tanpure, won a legal battle against the State of Maharashtra over a disputed loan repayment. The court ruled in favor of the cinema, allowing them to withdraw a deposited amount with interest.
Back in 1990, the Government of Maharashtra introduced a plan to support new cinema theaters with loans that didn't charge interest. Ashok Chitra Mandir received one such loan but later faced a demand for extra interest from the Maharashtra Film Stage and Cultural Development Corporation. The cinema argued they had already paid back the loan completely by 2004.
The case was heard by Judge R. M. Joshi on October 13, 2025. Ashok Chitra Mandir challenged an order from August 2019 that demanded they pay interest on the loan. They said they had paid back the loan in 18 parts from 2000 to 2004, but the State insisted on interest for late payments.
A key issue was the disagreement over the loan agreement terms. Ashok Chitra Mandir claimed they had an agreement to repay in parts, while the State pointed to a different agreement requiring full repayment within five years. This confusion led to a long legal fight.
Judge Joshi noted the confusion in the agreements and observed that the State had accepted partial payments without objection. The judge ruled that Ashok Chitra Mandir should not be punished with 18% interest and allowed them to withdraw the deposited amount with interest.
"Petitioner is permitted to withdraw the amount deposited along with interest accrued thereon." - Judge R. M. Joshi
The court decided in favor of Ashok Chitra Mandir, allowing them to take back the money they had deposited, along with any interest it earned, since the agreements were unclear and the State had accepted the payments without complaint.
