From Our Correspondent
Chennai: The Madras High Court on December 9 cleared the way for the release of Akhanda 2 after its producers reached a negotiated settlement with Eros International. This development brought an end to a long-running dispute over unpaid dues stemming from earlier film agreements and an arbitral award. The court recorded the settlement and vacated the interim injunction that had halted the film’s theatrical release.
Eros International had earlier sought to restrain 14 Reels Entertainment and its associates from releasing or commercially exploiting Akhanda 2. The reason was alleged non-payment of an arbitral award of ₹27.70 crore plus 14% interest arising from disputes linked to earlier films. The company also sought to block the creation of any third-party rights over Akhanda 2.
A Division Bench had reinstated an interim injunction on 3 December, remitting the matter back to the Single Judge for a fresh hearing. Before arguments resumed, the parties informed the court that they had reached an out-of-court settlement with the financial backing of a third entity, Mango Mass Media, which was impleaded in the case for this purpose
Key Terms of the Compromise
According to the Settlement Agreement dated 8 December, placed before Justice N. Anand Venkatesh:
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14 Reels (Second Party) will pay ₹10 crore to Eros International (First Party) as full and final settlement of all claims arising from the earlier distribution and assignment agreements and the arbitral award.
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Mango Mass Media (Third Party) has agreed to purchase rights to several films listed in Annexure-1 for ₹5 crore, paid directly to Eros as part of the settlement. This amount has already been transferred via RTGS.
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The remaining ₹5 crore is to be paid by 14 Reels within nine months (on or before 8 September 2026), with a possible three-month extension.
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A security cheque of ₹10 crore, dated 8 December 2026, has been handed over to Eros to cover any default.
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Upon receiving the full ₹10 crore, Eros will release all liens over the listed films and issue a No Objection Certificate, confirming no remaining dues.
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Eros agrees not to interfere with the theatrical or other exploitation rights of Akhanda 2 in future.
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All pending applications before the Madras High Court, and a cheque-bounce prosecution under Section 138 of the NI Act, will be withdrawn within one week.
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Both parties also filed a Joint Memo of Compromise, extending the settlement to cover any claims pending before other forums.
Court Lifts Injunction, Allows Release
After confirming the transfer of the initial ₹5 crore, the court vacated the interim injunction and permitted the producers to proceed with the release of Akhanda 2. A representative of Eros received the ₹10-crore security cheque in open court.
With all applications disposed of in terms of the settlement, the long-standing dispute that had cast uncertainty over the sequel’s release now stands resolved, clearing the path for the film’s full commercial rollout.