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Delhi High Court Halts Release of Tamil Film 'Veera Deera Sooran' for Four Weeks Over Assignment Agreement Dispute

28 Mar 2025 10:58 AM - By Vivek G.

Delhi High Court Halts Release of Tamil Film 'Veera Deera Sooran' for Four Weeks Over Assignment Agreement Dispute

The Delhi High Court has issued an ad-interim injunction on the release of the Tamil film Veera Deera Sooran, starring Vikram, over an alleged breach of an Assignment Agreement. The film, which was scheduled for release on March 27, 2025, has been deferred by four weeks following a legal dispute between its producer, HR Pictures, and Ivy Entertainment Private Limited.

Justice Manmeet Pritam Singh Arora, while granting the injunction in favor of Ivy Entertainment, noted:

"Considering the facts of the present case, the defendant is acting in breach of the Assignment Agreement. This Court is satisfied that the plaintiff has made out a prima facie case for grant of an ad-interim injunction against the defendant, its agents, representatives, and assigns or any person acting through the defendant from releasing the Assigned Film on March 27, 2025, for a period of four (4) weeks and no further."

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Background of the Dispute

The legal conflict stems from a Film Assignment Agreement dated June 19, 2024, between Ivy Entertainment (plaintiff) and HR Pictures (defendant). Under the agreement, HR Pictures assigned sole and exclusive rights of the film’s digital, theatrical, and satellite distribution in Hindi and North Indian languages to Ivy Entertainment in perpetuity. The deal was valued at Rs. 51 crore, out of which Ivy Entertainment had already paid Rs. 44 crore, leaving a pending balance of Rs. 7 crore.

According to the agreement, HR Pictures was required to provide Ivy Entertainment with all necessary Before Release Materials and Theatrical Release Materials at least 14 days before the film’s scheduled release. Additionally, the producer was obligated to furnish the Central Board of Film Certification (CBFC) certificate as part of the Theatrical Release Materials.

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Breach of Agreement

The High Court found that HR Pictures had obtained the CBFC certificate for the film’s original Tamil version only on March 22, 2025, just five days before its scheduled release. However, the required Theatrical Release Materials and Before Release Materials had not been provided to Ivy Entertainment.

The court emphasized that these materials were essential for Ivy Entertainment to complete the film’s dubbing and Hindi theatrical release. Despite repeated requests, HR Pictures failed to deliver them within the stipulated timeframe.

HR Pictures argued that since Ivy Entertainment had not yet cleared the remaining Rs. 7 crore payment, it was not obligated to perform under the agreement. However, the court rejected this claim, noting that Ivy Entertainment had agreed to pay the pending amount within 24 hours.

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Justice Arora further observed:

"Additionally, in the facts of the present case, it is evident that the defendant was not in a position to deliver the Theatrical Release Materials prior to March 22, 2025, as the CBFC certification, which is a mandatory statutory requirement under the Cinematography Act, 1952, was only obtained by the defendant on March 22, 2025. Moreover, as a matter of fact, the defendant has also not supplied any other Theatrical Release Materials enlisted in Article 1.24 of the Assignment Agreement or the pre-release materials stipulated in Article 1.12 of the Assignment Agreement. In these facts, the defendant's refusal to defer the release date of March 27, 2025, is a flagrant breach of its obligations under the Assignment Agreement."

Court’s Ruling

Since HR Pictures had failed to submit the required documents, the Delhi High Court issued an injunction staying the film’s release for four weeks. The court further ruled that once Ivy Entertainment pays the outstanding Rs. 7 crore, HR Pictures must immediately provide the Before Release Materials and Theatrical Release Materials within 48 hours, as stipulated in the Assignment Agreement.

Case title: Ivy Entertainment Private Limited vs. HR Pictures (CS(COMM) 264/2025)