Madras High Court rejects plea by Eros International to halt release of Akhanda 2

The Madras High Court on Thursday refused to halt the release of the upcoming Telugu film Akhanda 2 [Eros vs. 14 Reels Entertainment].

Akhanda 2 is a sequel to the 2021 box office hit Akhanda.

Justice Anand Venkatesh refused to grant interim injunction to Eros International Media Limited which moved the Court seeking to restrain the producers of the movie from releasing or commercially exploiting the film pending payment of over ₹27.7 crore under an arbitral award

Eros had alleged that the producer of the movie, 14 Reels Entertainment Pvt Ltd (the award debtor) and its promoters, had set up 14 Reels Plus LLP to evade execution of the arbitral award and were attempting to profit from the upcoming Akhanda 2.

Eros contended that 14 Reels Entertainment Pvt Ltd had deliberately sought to evade enforcement by shifting its business to a new vehicle, 14 Reels Plus LLP, incorporated in October 2017 while the arbitration was still pending. Both entities, it said, were controlled by the same promoters—Anil Sunkara, Gopi Chand Achanta and Rama Brahmam Achanta—and operated under the same “14 Reels” house mark.

According to Eros, the LLP was a “mere continuation and alter ego” of the company and had been created to defeat the arbitral award. The affidavit stated that films originally produced by 14 Reels Entertainment were now listed on the website and social-media accounts of 14 Reels Plus LLP, that the two used near-identical logos, and that the LLP’s promotional material even featured the same producers.

Therefore, Eros urged the Court to lift the corporate veil, treat both entities as one and prevent any release or monetisation of Akhanda 2 until its award amount was secured.

The company argued that the 2021 blockbuster Akhanda had grossed more than ₹130 crore and generated substantial digital and satellite revenue, and that allowing Akhanda 2 to release under the new LLP would frustrate the 2019 award.

The company sought an interim injunction restraining the respondents and their associates from releasing, distributing, streaming or creating third-party rights in Akhanda 2 until the award amount of ₹27.70 crore was deposited. It also sought directions that any revenue earned from Akhanda 2 be deposited with the Court.

However, after hearing the matter, the Madras High Court declined to grant interim injunctions against the release or monetisation of Akhanda 2.

Eros International was represented by Advocates Vaibhav R Venkatesh, Anirudh A Sriram, Akash Srinanda V, Thrivikrama Das K and Ajith Kidambi.

14 reels was represented by Senior Advocate MS Krishnan with advocates Keerthikiran Murali and Ashwin Shanbhag from Shanbhag, Sella and Keerthikiran Associates.