The Madras High Court case surrounding Akhanda II is not actually about the film itself.
The dispute traces back to a completely different film – the 2011 blockbuster Dookudu – and a long-running financial battle between Eros International Media Ltd. and production house 14 Reels Entertainment Pvt. Ltd.
Below is a clear breakdown of the entire timeline and why Akhanda 2 got entangled in a 10-year-old dispute.
How It All Began: The Dookudu Agreement (2015–2019)
Eros and 14 Reels Entertainment executed a financial and rights-related agreement connected to the film Dookudu.
Disputes soon emerged over payments, delivery of title documents, and performance of obligations under that agreement.
The result? Arbitration.
* On 23 July 2019, an arbitral tribunal directed 14 Reels Entertainment to:
* Pay ₹11.23 crore (plus contractual and post-award interest)
* Hand over all title documents related to Dookudu
* And refrain from dealing with Dookudu and other “forthcoming films” under the 2015 agreement until dues were settled
This award became fully final after:
.timeline-clean { list-style-type: disc; margin-left: 20px; }
.timeline-clean li { margin-bottom: 6px; }
- Madras High Court dismissed 14 Reels’ challenge (2020)
- Division Bench dismissed the appeal (Jan 2021)
- Supreme Court dismissed the SLP (6 Aug 2021)
- No money was ever paid.
Four Years of Silence: No Enforcement (2021–2025)
Despite winning fully in 2021, Eros did not move to enforce the award for nearly four years.
This delay later became a key argument used against Eros.
Akhanda 2 Triggers New Legal Action (2025)
In August 2025, Eros learned that the producers were gearing up to release Akhanda II, not through the award-debtor company (14 Reels Entertainment), but through a related entity: 14 Reels Plus LLP.
Eros alleged:
* The LLP was controlled by family/associates of the same promoters
* It was being used as an alter ego
* The move was designed to divert revenues and evade payment of the Dookudu award
Eros issued a legal notice on 26 August 2025, then immediately filed:
* Section 9 petitions before the Madras High Court
* Seeking to block the release of Akhanda II
* Until the ₹11.23 crore award (plus interest) was secured or paid
What Each Side Argued in Court
Eros (Applicant)
The award is final and unpaid.
* 14 Reels is trying to defeat recovery by shifting the Akhanda II release to the LLP.
* Without an injunction, they will suffer irreparable loss.
* The LLP is nothing but the alter ego of the award debtor.
* Several legal precedents allow veil-lifting in such circumstances.
14 Reels Entertainment (Respondent No. 1)
* Eros slept on its rights since 2021.
* They should proceed only before the execution court, not via fresh Section 9 petitions.
* Section 9 cannot be used as a “parallel remedy” after award finality.
14 Reels Plus LLP (Respondent No. 2)
* The LLP is independent, not a party to the original contract or arbitration.
* No injunction can be passed against a non-party.
* Veil-lifting requires strong evidence, which cannot be decided on limited affidavits in Section 9.
* Blocking Akhanda II would harm the LLP commercially.
High Court’s First Decision (30 October 2025)
A Single Judge of the Madras High Court dismissed Eros’ Section 9 petitions, holding:
* Section 9 cannot be used as a backdoor to execution
* Eros delayed enforcement for 4 years
* No concrete proof that the LLP was an alter ego
* Execution must happen before the Hyderabad court
* Result: No injunction → Akhanda II was free to release
High Court’s Division Bench Steps In (3 December 2025)
Eros appealed – and the Division Bench took a very different view.
The Division Bench ordered:
* The Single Judge’s order is set aside
* The matter is remanded for a fresh hearing
* Akhanda2 cannot be released, distributed, streamed, or exploited in any form
* Unless 14 Reels Entertainment / 14 Reels Plus LLP pays the entire arbitral award
* Injunction remains until final disposal of the Section 9 petitions
This effectively blocks the release of Akhanda II until the 2019 Dookudu award is cleared.
Where Things Stand Today
* The original dispute remains strictly about Dookudu
* Akhanda II is caught in the crossfire only because its revenues may help recover the old dues
* The film’s release is now tied directly to the repayment of a six-year-old arbitral debt
The case highlights:
* Corporate veil disputes
* Post-award Section 9 maintainability
* Award-evasion concerns in film financing
* How a decade-old contract can impact a major new theatrical release
Akhanda II has been halted not because of the film itself, but because of a long-pending payment dispute over Dookudu, where the producers are alleged to be diverting revenues through a related LLP to avoid paying a ₹11.23-crore arbitral award due to Eros.
