Court approved a settlement agreement between parties involved in a film distribution dispute, ensuring the transfer of rights and detailing obligations to be settled financially.

ORDER :

N. ANAND VENKATESH, J.

1. The Original Applications were filed for order of interim injunction restraining the respondents 1 and 2 from creating any third party rights with respect to the Movie titled as "Akhanda II" till the entire payment covered under the Award is settled to the applicant.

2.The main Original Applications along with other Applications were dismissed by this Court by an order dated 30.10.2025.

3.Aggrieved by the same, the applicant filed OSA(CAD)Nos.118, 119, 135 and 136 of 2025. The Division Bench of this Court by an order dated 03.12.2025, allowed the appeals in the following terms:

33. Since the impugned order dismissing the Section 9 application is passed on the ground of maintainability and relative merits have not been adjudicated completely by the learned Single Judge, it would be appropriate for this Court to remit the matter back to the learned Single Judge for adjudication of relative merits and for passing appropriate orders.

34. Accordingly, the impugned order dated 30.10.2025 passed in O.A.Nos.997 & 998 of 2025 is set aside and the matter is remitted back to the learned Single Judge for adjudication of issues on merits and to pass appropriate orders. Till such time, the matter is taken up by the learned Single Judge for fresh hearing, interim injunction in CMP No.29782 of 2025 as such sought for in the said application is granted. After commencement of the hearing, it is for the learned Single Judge to consider granting of extension of interim relief or pass any other appropriate orders, as the case may be, on merits. Consequently, connected Miscellaneous Petitions are closed.

4.Pursuant to the above order, these applications have been remitted back to enable this Court to hear the matter on merits and pass final orders. The Division Bench also made it clear that till the applications are taken up for fresh hearing, the interim injunction is granted and after the commencement of the hearing, the learned Single Judge can consider granting extension of interim relief or pass any appropriate orders.

5.After the matter was remitted back to this Court, the parties thought it fit to compromise the dispute among themselves. In order to facilitate the compromise between the applicant and respondents 1 and 2, the impleaded 3rd respondent got into the scene in order to provide the finance. Accordingly, the 3rd respondent filed application in A.Nos.1388 & 1374 of 2025 to implead themselves as the 3rd respondent in the main Original Applications and the impleading petition was also allowed by this Court.

6.When the matter was taken up for hearing today, the representatives of the applicant Company, the 2nd respondent Company and the 3rd respondent Company were present. The Settlement Agreement dated 08.12.2025, entered into between the parties and signed by the respective parties was placed before this Court.

7.The relevant terms of Agreement is extracted hereunder:

1. The SECOND PARTY confirms to transfer an amount of Rs. 10,00,00,000/- (Rupees Ten Crores Only) to the FIRST PARTY as a full and final settlement in relation to the disputes arising out of Film Distribution Agreement dated 20.12.2013, Assignment Agreement dated 17.10.2015 and Agreement-cum- Undertaking dated 17.10.2015 and Arbitral Award dated 23.07.2019 and in full release of the lien that has been marked over the films produced by the Second Party. The SECOND PARTY has offered to sell the rights of the movies as detailed in Annexure-1 of the SETTLEMENT AGREEMENT, to the THIRD PARTY and the THIRD PARTY has agreed to purchase the same.

2 The THIRD