Madras HC orders Dawn Pictures to furnish security of Rs 8.4 crore in Sudha Kongara's remuneration case

CHENNAI: The Madras High Court has directed Dawn Pictures Private Limited to furnish security of Rs 8.39 crore within four weeks in connection with filmmaker Sudha Kongara's remuneration dispute over Parasakthi, after noting that successive arbitrator recusal had left the applicants without any interim protection.

Sudha Kongara moved the Madras High Court seeking payment of the balance remuneration of Rs 8.39 crore, along with 12 per cent interest from February 8, 2026. She also sought the amount as security pending the passing of an arbitral award.

She further submitted that despite not paying her remuneration, Dawn Pictures was proceeding with the release of its upcoming film Idhayam Murali, and sought to restrain its release until the outstanding amount was paid.

The court, however, refused to grant an interim injunction restraining the release of the film and directed Sudha Kongara and Dawn Pictures to resolve their monetary dispute through arbitration.

When the matter came up before Justice K Kumaresh Babu, the court noted that two arbitrators appointed by it had recused themselves. While the first cited mistrust from the respondent, the second cited personal reasons and unavailability, clarifying that his recusal was not due to doubts over his independence or impartiality.

Observing that the successive recusals had left the applicants without any interim protection, the judge kept the arbitrator's appointment in abeyance and recalled the July 10 order closing the applications. The court also noted Dawn Pictures Private Limited's continued absence during the hearings.

The Court directed Dawn Pictures Private Limited to furnish security of Rs 8.39 crore within four weeks, failing which the revenue from its future films would stand attached.