Madras High Court allows release of Akhanda II after Eros, 14 Reels reach ₹10-crore settlement

In October this year, Justice N Anand Venkatesh had dismissed two Section 9 petitions filed by Eros seeking to restrain 14 Reels from creating third-party rights or releasing Akhanda II until payment of the arbitral award of ₹27.7 crore with 14 percent annual interest.
However, a Division Bench last week injuncted the release of the film and remanded the matter back to the single-judge for consideration on merits.
When the case was taken up on Wednesday, the parties submitted a settlement agreement dated December 8 under which the dispute stood fully compromised.
Akhanda II is a sequel to the 2021 box office hit Akhanda.
Eros had alleged that the producer of Akhanda II, 14 Reels Entertainment Pvt Ltd (the award debtor), and its promoters had set up 14 Reels Plus LLP to evade execution of the 2019 arbitral award and were attempting to profit from the sequel without clearing dues.
In its Section 9 petition, Eros claimed that 14 Reels Entertainment deliberately shifted its business to 14 Reels Plus LLP—incorporated in October 2017 while arbitration was still pending—to avoid enforcement.
Both entities, it said, were controlled by the same promoters (Anil Sunkara, Gopi Chand Achanta and Rama Brahmam Achanta), used near-identical “14 Reels” branding, and publicly showcased the same films and producers across websites and social-media platforms.
Eros argued that the LLP was a “mere continuation and alter ego” of the company and urged the Court to lift the corporate veil, treat both entities as one and prevent any exploitation of Akhanda II until the award was secured.
It pointed out that the 2021 blockbuster Akhanda had earned more than ₹130 crore and generated significant digital and satellite revenue, and warned that releasing the sequel under the LLP would frustrate the award.
Eros sought an interim injunction restraining the respondents from releasing, distributing or creating third-party rights in Akhanda II, and requested that any revenue from the film be deposited with the Court until the ₹27.70-crore award was secured.
Under the terms of the agreement, 14 Reels undertook to make a one-time settlement payment of ₹10 crore to Eros. Of this amount, Mango Mass Media, the third respondent impleaded to finance the compromise, paid ₹5 crore directly to Eros on December 9.
The remaining ₹5 crore is to be paid by 14 Reels on or before September 8, 2026, with a possible extension of three months.
The parties agreed that time is “the very essence” of the settlement. In the event of default, 14 Reels would become liable to pay the entire outstanding amount as per the original arbitral award with the default quantified at ₹10 crore as of December 8, 2026, carrying interest of 18 percent per annum.
A security cheque for ₹10 crore was also handed over to Eros in court.