Madras High Court Clears Akhanda II Release After Rs 10-Crore Settlement Between Eros and 14 Reels

The Madras High Court in Eros International Vs 14 Reels has allowed the release of the Telugu film Akhanda II after Eros International Media Limited and 14 Reels Entertainment reached a ₹10-crore settlement, ending their long-standing dispute over a 2019 arbitral award.

The parties submitted a settlement agreement dated December 8, confirming that the matter had been completely resolved.

Earlier, in October, Justice N Anand Venkatesh had dismissed two Section 9 petitions filed by Eros. In those petitions, Eros had asked the Court to stop 14 Reels from releasing Akhanda II or creating any third-party rights until it cleared the arbitral award of ₹27.7 crore along with 14% yearly interest.

However, a Division Bench later put an interim stay on the film’s release and sent the matter back to the single judge for fresh consideration.

Eros’ Allegations

Eros had alleged that 14 Reels Entertainment and its promoters created another entity, 14 Reels Plus LLP, to avoid paying the arbitral award. According to Eros, the LLP was simply a continuation of 14 Reels Entertainment because:

• Both entities were run by the same promoters — Anil Sunkara, Gopi Chand Achanta and Rama Brahmam Achanta.
• Both used similar “14 Reels” branding.
• Both showcased the same films and producers on their websites and social media pages.

Eros argued that the corporate veil must be lifted and both entities should be treated as one so that the film’s revenue could not be used to bypass the award. It pointed out that the earlier film Akhanda earned more than ₹130 crore and generated strong satellite and digital income, and warned that releasing the sequel under a different entity would harm the enforcement process.

Eros had also sought an interim order to stop the release, distribution or creation of any third-party rights in Akhanda II. It further requested that all earnings from the film be deposited in court until the award was secured.

Terms of The Settlement

Under the settlement:

• 14 Reels agreed to pay Eros a one-time amount of ₹10 crore.
• Of this, ₹5 crore was paid on December 9 by Mango Mass Media, a third respondent brought in for financing the compromise.
• The remaining ₹5 crore must be paid on or before September 8, 2026, with a possible extension of three months.
• A security cheque of ₹10 crore was handed over to Eros.
• If 14 Reels defaults on payment, it will become liable to pay the full amount under the original arbitral award, calculated at ₹10 crore as of December 8, 2026, along with 18% annual interest.
• After receiving the full settlement amount, Eros will release its lien over several films originally produced by 14 Reels, including Dookudu, 1: Nenokkadine, Legend, Aagadu, Hyper and others. These rights will then shift to Mango Mass Media.

The Court recorded the settlement and disposed of the applications, making the terms part of the official order.

Eros was represented by advocate Akash Srinanda. 14 Reels was represented by advocates Keerthikiran Murali, P Giridharan, and C Prasanna Venkatesh.