Madras High Court Allows Theatrical Release of Jayam Ravi Film Karathey Babu in Copyright Dispute

In a significant development for the Tamil film industry, the Madras High Court has permitted the theatrical release of the upcoming Jayam Ravi-starrer Karathey Babu while maintaining a broad interim injunction on other assigned rights. Justice K. Kumaresh Babu modified the earlier blanket restraint order on September 1, 2026, allowing the producer, Screen Scene Media Entertainment Pvt. Ltd., to proceed with the film’s theatrical release.

A Film Caught in a Copyright Clash

The dispute arose from a 2022 sale agreement between Dr. S. Venkatesh (the plaintiff) and Screen Scene (the defendant) concerning two untitled film projects, Production No. 8 and Production No. 9. When Screen Scene released Production No. 8 (later titled Brother ) without honouring Dr. Venkatesh’s assignment rights, the parties executed amendments specifically assigning all rights of Production No. 9 — now known as Karathey Babu — to Dr. Venkatesh. The assignment covered an extensive bundle of commercial and non-commercial rights, including satellite, OTT, dubbing, remake, and even NFT-related rights, but notably excluded theatrical rights .

Based on these agreements and a letter to a film laboratory acknowledging the assignment, Dr. Venkatesh obtained an interim injunction on June 25, 2026, restraining Screen Scene from dealing with the film in any manner. Screen Scene then moved to vacate that injunction, alleging the agreements were fabricated.

The Assignment Agreement Under Scrutiny

Screen Scene contended that the documents were a “calculated misrepresentation.” Counsel argued that the blank signed papers, promissory notes, and letterheads handed over as collateral for an overdraft facility against Dr. Venkatesh’s fixed deposits with Axis Bank had been misused to create the assignment agreements. The company vehemently denied any assignment of theatrical release rights.

Dr. Venkatesh’s counsel countered by pointing to the undisputed signatures on the agreements, the laboratory letter, and minutes of a November 25, 2024 meeting where Screen Scene’s Managing Director allegedly affirmed the assignment. “At no point of time were allegations of blank signed papers made by the defendant,” the plaintiff argued.

Blank Paper Allegations Dismissed

The court closely examined the documents. “Even though the defendant had disputed the agreement, he has not disputed the signatures found in the said agreements,” Justice Babu observed. The minutes of the meeting were also challenged on the ground that the Managing Director had signed for multiple group companies, but the judge noted that “he had not disputed that he is not having any role in any of the companies which he represented.”

Rejecting the fabrication claim, the court held: “This Court is of the prima facie view that the plaintiff would be entitled for an injunction for violating the assignment rights that had vested with it under the agreements as amended.”

Balancing Rights: Theatrical vs. Other Rights

While finding a strong prima facie case for Dr. Venkatesh on the assigned rights, the court drew a critical distinction. “From the above, it could be observed that the copy rights and other rights both commercial and non commercial in various modes have been given to the plaintiff except the theatrical rights,” the judgment stated.

This exclusion meant the original blanket injunction was too wide. The court therefore modified the order, restricting the injunction to the rights enumerated in Schedule B of the sale agreement — which include every conceivable form of exploitation except theatrical exhibition. Screen Scene was expressly permitted to release Karathey Babu in theatres.

What the Court Ordered

The High Court disposed of both the vacate applications and the original applications by directing that:

  • The interim injunction stands only in respect of the rights assigned under Schedule B of the May 12, 2022 sale agreement.
  • Screen Scene Media Entertainment is free to proceed with the theatrical release of Karathey Babu .
  • No order as to costs.

The ruling ensures that Jayam Ravi’s film can hit the big screen without delay, while Dr. Venkatesh’s claims over satellite, digital, and other ancillary rights remain protected pending the final disposal of the suit. The decision offers a practical template for courts dealing with copyright disputes where rights are partially assigned — balancing the interests of producers and assignees without stifling commercial release.