AVM Productions’ family dispute reaches Madras High Court

The property dispute between the partners of family-owned AVM Productions has reached the Madras High Court, with one of the great granddaughters of the founder A.V. Meiyappan insisting on partitioning the family properties.

The property dispute between the partners of family-owned AVM Productions, one of Tamil Nadu’s oldest film production houses, has reached the Madras High Court, with one of the great granddaughters of the founder A.V. Meiyappan insisting on partitioning the family properties.

Aparna Guhan Shyam, one of the twin daughters of M.S. Guhan, has filed a civil suit in the High Court seeking one-fifth of the share in the family properties. She has also sought a permanent injunction restraining AVM Studios from competing with AVM Productions in the film business.

According to the plaintiff, AVM Productions was a partnership firm in which her paternal grandfather M. Saravanan (popularly known as AVM Saravanan) had 15% share, her father Mr. Guhan had 45% share, and her sister Aruna Guhan and herself had 20% shares each.

Claiming that her father had developed a hostile attitude towards her ever since she married a person from another caste, the plaintiff said, he created a special purpose vehicle (SPV) titled AVM Studios, with him holding 50% shares and her sister as well as her grandfather holding 25% each.

Though the plaintiff was not included as a partner in AVM Studios created for carrying on identical business such as producing feature films, making web series, operating studios and allied activities, its partnership deed stated that all profits and losses from the business would be transferred to AVM Productions.

Fearing that the SPV had been created solely for the purpose of making AVM Productions suffer losses and ultimately shut down, the plaintiff filed an application urging the court to restrain AVM Studios from carrying out any kind of business activity until the disposal of her suit for partition.

When the application was taken up for hearing by Justice R.M.T. Teekaa Raman, it was argued on behalf of Mr. Guhan that AVM Productions had turned into a loss-making company only because of the hyperactivity of the plaintiff who wanted it to produce a movie with her husband as a hero.