Madras High Court puts brakes on Arulnithi’s Demonte Colony 3 release
The theatrical release of Arulnithi-starrer Demonte Colony 3 has been put on hold by the Madras High Court amid a dispute over the film’s production and rights.
The case was brought by A Vijaya Subramanian, authorised signatory of White Nights Entertainments, against director Ajay Gnanamuthu.
According to the petition, White Nights Entertainments and Gnanamuthu entered into a partnership agreement on January 2, 2023, covering the production, marketing and distribution of films.
The petitioner claimed that the agreement also extended to future instalments of the Demonte Colony franchise, including Demonte Colony 3 and Demonte Colony 4.
Following the commercial performance of Demonte Colony 2, the parties allegedly agreed to jointly produce the third instalment under the existing arrangement.
Subramanian alleged that Gnanamuthu subsequently associated himself with Passion Studios without informing him and held a pooja ceremony for the film in July 2025.
According to the petition, Gnanamuthu later told Subramanian that Passion Studios’ involvement was limited to technical and logistical assistance and that White Nights Entertainments would remain involved as a co-producer, with its credits and agreed share of profits retained.
The petitioner further alleged that the film was later submitted for certification without his knowledge and that his name and production company were omitted from the relevant material.
The film received certification from the Central Board of Film Certification on July 14, 2026.
Subramanian approached the High Court seeking an interim order preventing the film from being released or commercially exploited through theatres, streaming services or other platforms until the related arbitration proceedings are resolved.
Justice K Kumaresh Babu has granted an interim stay on the film’s release and directed Gnanamuthu to file his response within four weeks. The case will proceed further after the court receives the director’s response.