Court records respondent's undertaking admitting liability, restrains theatrical and OTT release of Vijay Antony-Arun Vijay starrer pending arbitration proceedings
In a significant development in the Tamil film industry, the Madras High Court has effectively halted the release, screening, and distribution of the much-anticipated Tamil feature film "Agni Siragugal" — starring Vijay Antony, Arun Vijay, and Akshara Haasan, and directed by Naveen — until the production house clears admitted financial dues owed to its co-producer.
Justice K. Kumaresh Babu of the Madras High Court passed the order on 15th September 2026, disposing of three interlinked applications filed by M/s. Shanti Telefilms (Applicant) against M/s. Amma Creations (Respondent), recording the respondent's affidavit and undertaking before the Court.
Background of the Dispute
The dispute centres around alleged unpaid dues amounting to Rs. 2,00,00,000 (Rupees Two Crores), along with interest claimed at the rate of 36% per annum from the date of disbursement until payment. M/s. Shanti Telefilms approached the Madras High Court under Section 9 of the Arbitration and Conciliation Act, 1996, seeking urgent interim protection to safeguard its financial interests before the matter could be resolved through arbitration.
Three separate applications were filed by the applicant:
1. O.A. No. 372 of 2026 — Seeking an interim injunction restraining the respondent from releasing, exploiting, screening, distributing, or exhibiting the film "Agni Siragugal" through any medium, including theatrical release and OTT platforms, without first clearing the admitted dues payable to the applicant.
2. Arb. Appln. No. 944 of 2026 — Seeking a direction to the respondent to render a true and faithful account of all revenues and monies received or receivable from the exploitation of the film, and to deposit the entire proceeds to the credit of the proceedings pending arbitration.
3. Arb. Appln. No. 945 of 2026 — Seeking a direction to the respondent to furnish security to the satisfaction of the Court for the claim amount of Rs. 2 Crores along with interest at 36% per annum, to remain operative until enforcement of any arbitral award.
Respondent Admits Liability, Gives Undertaking
In a notable development, M/s. Amma Creations did not contest the liability. Instead, the respondent filed an affidavit dated 30th June 2026 before the Court, admitting its liability as claimed by the applicant and giving a clear undertaking that it would not release, distribute, exploit, exhibit, or otherwise commercially exploit the film "Agni Siragugal" without first clearing the dues of the applicant, including any third-party interests in the film.
Court's Order
Justice K. Kumaresh Babu took the affidavit on record and disposed of all three applications, making it explicitly clear that the undertaking given by the respondent shall be strictly adhered to until the disposal of the arbitral proceedings. The Court also noted that a Section 11 application — seeking appointment of an arbitrator — had already been moved before the Court and was awaiting orders, signalling that the arbitration process was set to formally commence soon.
The Court passed the order without imposing any costs on either party.
Significance of the Judgment
This order highlights the protective role of Section 9 of the Arbitration and Conciliation Act, 1996, which empowers courts to grant interim measures before or during arbitral proceedings to protect parties from irreparable harm. The Madras High Court's intervention ensures that the film cannot be commercially exploited — through theatres, OTT platforms, or any other medium — until the financial dispute is resolved through arbitration, thereby protecting the applicant's legitimate financial interests.
The case also underscores the increasing intersection of intellectual property rights, entertainment law, and arbitration in India's thriving film industry.
Bottom Line:
Interim injunction granted against release, screening, or distribution of Tamil feature film "AGNI SIRAGUGAL" until admitted dues payable to the applicant are cleared as per respondent's affidavit and undertaking.
Statutory Provision(s):
Section 9 of the Arbitration and Conciliation Act, 1996, Section 11 of the Arbitration and Conciliation Act, 1996
M/s.Shanti Telefilms v. M/s.Amma Creations, (Madras) : Law Finder Doc Id # 2980732
