The Madras High Court has imposed an interim stay on the release of actor Arulnithi-starrer horror thriller Demonte Colony 3, following a dispute over the film’s production and rights.
The petition was filed by A Vijaya Subramanian, authorised signatory of White Nights Entertainments. According to the petitioner, a partnership deed executed with director Ajay Gnanamuthu in January 2023 covered the production, marketing and distribution of films in the Demonte Colony franchise, including its future sequels.
The petitioner alleged that after the success of Demonte Colony 2, an agreement was reached to produce the third instalment. However, he claimed that Ajay Gnanamuthu subsequently joined hands with Passion Studios without his knowledge and proceeded with the film. He further alleged that his production company’s name was omitted from the CBFC certification and promotional materials.
Seeking an injunction against the film’s theatrical, OTT and other commercial exploitation, the petitioner approached the High Court. Justice K. Kumaresh Babu granted an interim stay on the release and directed Ajay Gnanamuthu to file his response within four weeks. The matter has been adjourned.
The film, directed by Ajay Gnanamuthu and starring Arulnithi and Priya Bhavani Shankar, had been scheduled for theatrical release. Passion Studios had earlier announced the film as a major horror-thriller production shot across locations including Portugal, Malta, Leh-Ladakh and Chennai.