The Madras High Court directed AAI to maintain the status quo until it decides on the multiplex's May 29 plea to continue operations, according to a report in The Hindu.
The Court was informed that AAI will decide based on Articles 41 and 42 of the MLCP agreement, and the order was issued while disposing of PVR INOX’s writ petition to restrain AAI from interfering.
The Dispute
PVR INOX informed the Court that AAI had been fully aware of the multiplex's plans since 2018, having granted environmental clearance and sanctioned construction plans in 2019 and 2021.
Olympia Techpark, the successful bidder, formed Meenambakkam Realty Private Limited, which signed a 15-year development agreement with AAI in 2018. Based on these clearances, PVR INOX entered a 13.5-year sub-licence in 2022 and commenced screening films from February 2023.
AAI ordered the closure of the multiplex in July 2023 under the AAI Act. Meenambakkam Realty secured an interim order from the Delhi High Court, and an arbitral tribunal stayed the operation of the July 2023 order.
Premature Termination
After the interim relief was vacated, Meenambakkam Realty informed PVR INOX on May 15, 2025, that its development agreement with AAI had been prematurely terminated, with AAI taking over the entire 2.47 lakh sq ft facility.
Citing Article 42 and 43 of the agreement, which allow AAI to permit sub-licensees to continue on negotiable terms, PVR INOX submitted a representation on May 29 seeking permission to operate the multiplex despite the termination of the agreement with Meenambakkam Realty.