Madras High Court Approves Release of Akhanda II Following Settlement

The Madras High Court in India has granted permission for the release of the Telugu film Akhanda II, following a settlement between Eros International Media Limited and Hyderabad-based 14 Reels Entertainment. This agreement resolves a protracted legal dispute related to a 2019 arbitral award.

On December 11, 2025, the court's decision came after the parties submitted a settlement agreement dated December 8, which outlined the terms of their compromise. Earlier in October, Justice N Anand Venkatesh had dismissed petitions from Eros that sought to prevent 14 Reels from releasing Akhanda II until the payment of a ₹27.7 crore award, which included annual interest of 14 percent.

Last week, a Division Bench had temporarily halted the film's release, sending the matter back to the single-judge bench for further consideration. The resolution of the case was welcomed by both parties as they reached an amicable settlement.

Akhanda II is the sequel to the 2021 blockbuster Akhanda, which performed exceptionally well at the box office, grossing over ₹130 crore and generating significant revenue through digital and satellite rights. Eros International had previously accused 14 Reels Entertainment of establishing a new entity, 14 Reels Plus LLP, to evade the enforcement of the 2019 arbitral award, alleging that both companies were under the same management and utilised similar branding.

In response to the accusations, Eros sought an interim injunction to prevent the release and distribution of Akhanda II until the award was secured. The court was urged to consider the potential financial implications of releasing the sequel under the new entity.

As part of the settlement, 14 Reels has agreed to pay a total of ₹10 crore to Eros. The payment structure includes an immediate transfer of ₹5 crore from Mango Mass Media, a third-party financier involved in the agreement, with the remaining ₹5 crore to be paid by 14 Reels by September 8, 2026, with a possible three-month extension. Should there be a default, 14 Reels would be liable for the entire amount of the original award, plus interest.

In court, a security cheque for ₹10 crore was also presented to Eros. Upon full payment of the settlement, Eros will relinquish its claims over a collection of films produced by 14 Reels, including notable titles such as Dookudu and Legend.

The court's ruling concluded the applications concerning the matter, stating that the terms of the December 8 settlement would form part of the order. Eros was represented by advocate Akash Srinanda, while 14 Reels was represented by advocates Keerthikiran Murali, P Giridharan, and C Prasanna Venkatesh.

In a separate development, Akhanda II faced another challenge as the Telangana High Court recently blocked a government order allowing increased ticket prices and special premiere shows, adding to the film's pre-release hurdles. The film, which is set to be released worldwide on December 12, 2025, stars Nandamuri Balakrishna and has already seen considerable buzz despite the ongoing legal and financial challenges surrounding its release.