Madras High Court stays release of Arulnithi-starrer 'Demonte Colony 3'

CHENNAI: The Madras High Court has stayed the release of actor Arulnithi-starrer Demonte Colony 3 following a legal dispute between White Nights Entertainments and director Ajay Gnanamuthu over the film's production and rights.

A Vijaya Subramanian, authorised signatory of White Nights Entertainments, filed a petition before the court stating that a deed of partnership was executed with director Ajay Gnanamuthu on January 2, 2023, for the production, marketing, and distribution of feature films.

The petitioner stated that the partnership covered the Demonte Colony franchise, including future sequels such as Demonte Colony 3 and Demonte Colony 4. He added that following the commercial success of Demonte Colony 2, both parties mutually settled their accounts and agreed to produce Demonte Colony 3 under the deed.

However, he alleged that Ajay Gnanamuthu joined hands with Passion Studios without his knowledge and conducted a pooja ceremony for the film on July 7, 2025. When confronted, the director reportedly assured him that Passion Studios was involved only for technical and logistical facilitation, and that Subramanian would continue as joint producer with his credits included in title cards and profits shared as per the agreement.

The petitioner further alleged that the director and Passion Studios later applied for CBFC certification without informing him, concealing his name and production house. The film was granted CBFC certification on July 14, 2026. He alleged that the director subsequently refused to include his name or production house in promotional materials and title cards.

Subramanian sought an interim injunction restraining Ajay Gnanamuthu from releasing, exhibiting, or commercially exploiting Demonte Colony 3 in theatres, on OTT platforms, or through any other media pending disposal of arbitral proceedings.

Granting an interim stay on the release of Demonte Colony 3, Justice K Kumaresh Babu also directed director Ajay Gnanamuthu to file his response within four weeks and adjourned the hearing.