Madras High Court Approves Settlement in Eros International and 14 Reels Entertainment Dispute

Court Authorizes Release of "Akhanda II" Following Arbitration Settlement Agreement

In a significant development, the Madras High Court, presided over by Justice N. Anand Venkatesh, has approved a settlement agreement between Eros International Media Limited and 14 Reels Entertainment Private Limited, resolving ongoing arbitration-related disputes. The court's decision, dated December 10, 2025, concludes a protracted legal battle over financial claims linked to film distribution and production agreements.

The dispute centered around financial settlements from previous agreements and an arbitral award dated July 23, 2019. Eros International, the applicant, sought interim injunctions to prevent the respondents from creating third-party rights concerning the film "Akhanda II" until the financial obligations were met. The court initially dismissed these applications, prompting an appeal to a Division Bench, which remitted the matter back to the Single Judge for adjudication on merits.

Following the remittance, all parties reached a settlement, documented in a Settlement Agreement dated December 8, 2025. Key terms of the agreement include a full and final settlement amount of Rs. 10 Crores to be paid to Eros International, with an immediate part payment of Rs. 5 Crores. This settlement also involves the transfer of movie rights to a third party, facilitating the release of "Akhanda II."

The court's order incorporates the Settlement Agreement, mandating the withdrawal of all pending cases and continuation of interim orders until part payments are made. With the confirmation of the Rs. 5 Crores payment, the court vacated the interim injunction, authorizing the release of "Akhanda II."

The Settlement Agreement ensures that upon full payment, all claims between the parties will be relinquished, including any pending in other forums. Furthermore, the agreement stipulates that any default in payment will result in the crystallization of the outstanding amount at Rs. 10 Crores, with an 18% annual interest on delayed payments.

This resolution marks a pivotal moment for both Eros International and 14 Reels Entertainment, allowing them to proceed without further legal hindrances. The court's approval of the settlement underscores the efficacy of arbitration and compromise in resolving complex commercial disputes.

Bottom Line:

Settlement in arbitration-related disputes - Court approved the Settlement Agreement and disposed of the applications based on terms agreed upon by the parties, including withdrawal of pending cases and continuation of interim orders until part payments were made.

Statutory provision(s): Arbitration and Conciliation Act, 1996 Sections 9

Eros International Media Limited v. 14 Reels Entertainment Private Limited, (Madras) : Law Finder Doc Id # 2820814