Subtitle: Justice K. Kumaresh Babu refused to stay the film’s release and referred the contractual payment dispute between filmmaker Sudha Kongara and Dawn Pictures to arbitration.
Sudha Kongara Dawn Pictures Arbitration Dispute Madras High Court
The Sudha Kongara Dawn Pictures arbitration dispute Madras High Court ruling allowed the theatrical release of Idhayam Murali to proceed despite an ongoing payment dispute. Justice K. Kumaresh Babu dismissed the plea seeking an interim stay on the film’s release. At the same time, the Court appointed an independent arbitrator to decide the contractual claims between filmmaker Sudha Kongara and Dawn Pictures Private Limited.
Director Claims ₹8.39 Crore Remains Unpaid
Sudha Kongara and Undertow Professional Services Private Limited filed the petition under Section 9 of the Arbitration and Conciliation Act, 1996. They claimed that Dawn Pictures owed ₹8.39 crore under a tripartite agreement.
According to the petition, Kongara signed the agreement on July 2, 2024, to direct Parasakthi, starring Sivakarthikeyan. The agreement fixed her remuneration at ₹15 crore, which increased to ₹17.70 crore after GST. The petitioners said Dawn Pictures paid only ₹9.31 crore and failed to pay the remaining amount after the film’s release on January 9, 2026.
Petitioners Cite Script Rights and Financial Concerns
The dispute traces back to an earlier agreement between Sudha Kongara and 2D Entertainment for a project titled Purananooru. Although both parties later terminated that agreement, 2D Entertainment retained the screenplay rights. Dawn Pictures later acquired those rights for ₹5.8 crore, leading to a fresh agreement with Kongara.
The petitioners argued that the screenplay rights would transfer only after the producer paid the full remuneration. They also questioned Dawn Pictures’ financial capacity. According to them, the company’s paid-up share capital of ₹3.10 crore raised concerns about recovering any future arbitral award if Idhayam Murali released without securing their claim.
Dawn Pictures Disputes the Payment Claim
Dawn Pictures opposed the request for an injunction. The company argued that the financial dispute involved several connected transactions and could not be viewed in isolation.
The producer stated that Kongara had already received ₹4.12 crore from 2D Entertainment before the earlier project ended. It also claimed that Dawn Pictures later paid her another ₹8.5 crore, excluding GST.
The company further said online leaks during the production of Parasakthi forced it to spend heavily on anti-piracy measures. It also incurred legal expenses in a separate copyright dispute. Dawn Pictures argued that these issues created valid counterclaims that only an arbitral tribunal could examine.
Court Refuses to Delay Film Release
After hearing both sides, Justice K. Kumaresh Babu held that one contractual dispute should not prevent the release of another film. The Court found that the balance of convenience did not support granting an interim injunction.
The Court dismissed the application and allowed Idhayam Murali to release as scheduled. It directed both parties to present their contractual claims, payment disputes, and counterclaims before the arbitrator.
The Sudha Kongara Dawn Pictures arbitration dispute Madras High Court ruling makes it clear that arbitration remains the proper forum for resolving commercial disputes while allowing unrelated business activities to continue.
Legal Representation
For the Petitioners: Advocates Nithyaesh Natraj and Vaibhav R. Venkatesh.
For the Respondent: Senior Counsel P.H. Arvindh Pandian.
