Madras HC blocks release of Akhanda 2 until Eros’ ₹28 cr arbitral dues are cleared

In a major enforcement victory for Eros International Media Ltd., the Madras High Court has restrained the release, distribution and commercial exploitation of the upcoming Telugu film Akhanda 2, tightening judicial scrutiny on entities allegedly attempting to evade a ₹28-crore arbitral award.

A Division Bench of Justice S.M. Subramaniam and Justice C. Kumarappan passed the interim injunction while hearing a batch of appeals — OSA (CAD) Nos. 118, 119, 135 and 136 of 2025 — filed by Eros. The appeals challenged the October 30, 2025 order of a Single Judge who had dismissed the company’s petitions under Section 9 of the Arbitration and Conciliation Act seeking post-award interim protection.

₹27.8-crore arbitral award at the centre of dispute

Eros has been attempting to enforce a July 23, 2019 arbitral award directing 14 Reels Entertainment Pvt. Ltd. to pay approximately ₹27.8 crore plus 14% annual interest. With recovery efforts yielding little movement over the years, Eros told the Division Bench that associated entities were now moving ahead with Akhanda 2 in what the company described as a strategy to avoid meeting outstanding financial obligations.

According to Eros, 14 Reels Plus LLP — an affiliated entity of 14 Reels Entertainment — was preparing to release the film and thus “indirectly” circumvent the award. The company contended that unless interim relief was granted, the commercial rollout of Akhanda 2 would severely undermine enforcement efforts.

Represented by senior advocates P.S. Raman and A.R.L. Sundaresan, along with counsels Nithyaesh Natraj and Vaibhav Venkatesh, Eros argued that the group entities were operating in concert to shield assets and revenue streams.

The Bench set aside the Single Judge’s dismissal and remanded the matter for fresh consideration on merits. However, it simultaneously granted sweeping interim protection in favour of Eros.

Crucially, while remanding the matter back for fresh consideration on merits, the Bench issued a comprehensive injunction restraining: 14 Reels Plus LLP, 14 Reels Entertainment Pvt. Ltd, Any of their directors, officers, servants, agents, assigns, subsidiaries, affiliates, or persons acting on their behalf or in concert from releasing, distributing, exhibiting, broadcasting, streaming, or otherwise commercially exploiting Akhanda 2 in any medium.

The Bench further ruled that the film may only be released if the full arbitral award amount — ₹27,80,01,813 plus 14% interest till the date of actual payment — is paid to Eros.

The injunction will continue until the Single Judge adjudicates the Section 9 petitions on merits, effectively freezing the film’s theatrical, digital, satellite or ancillary exploitation rights.

For Eros, the decision marks a significant step forward in a six-year pursuit to secure dues under the 2019 award.

Eros has alleged that 14 Reels Plus LLP, incorporated in October 2017 while arbitration proceedings were ongoing, was a “mere continuation and alter ego” of 14 Reels Entertainment. Both entities, the company argued, are controlled by the same promoter group — Anil Sunkara, Gopi Chand Achanta and Rama Brahmam Achanta — and function under the widely-known “14 Reels” banner.

The affidavit placed before the court claimed that films previously produced by 14 Reels Entertainment were now being showcased on the LLP’s website and social media accounts. The production houses also allegedly share similar branding, logos and promotional material.

Eros argued that permitting Akhanda 2 — the sequel to the 2021 blockbuster Akhanda, starring Nandamuri Balakrishna and directed by Boyapati Srinu — to be released through the LLP would allow the promoters to reap commercial gains while leaving the award debtor’s liabilities unaddressed. The first film reportedly grossed over ₹130 crore worldwide, and the sequel is expected to generate significant revenues.