The release of Arulnithi-starrer ‘Demonte Colony 3’ has hit a legal roadblock, with the Madras High Court granting an interim stay on the film’s release amid a dispute over its production, marketing and distribution rights. The development has put the horror franchise’s theatrical plans on hold as the court considers the claims raised in the petition.

Madras High Court grants interim stay on ‘Demonte Colony 3’

According to Dinamalar, A Vijaya Subramanian, authorised signatory of White Nights Entertainments, approached the court in connection with the film’s production and rights. The petition refers to a partnership agreement entered into with director Ajay Gnanamuthu in January 2023, which the petitioner claims covered the production, marketing and distribution of films in the Demonte Colony franchise, including future instalments.The petitioner alleged that after the success of ‘Demonte Colony 2,’ there was an understanding to produce the third instalment under the existing arrangement. The petition further alleged that Gnanamuthu subsequently associated with Passion Studios without White Nights Entertainments’ knowledge.The petitioner also alleged that the film was submitted for certification without informing him and that his name and production house were not included in the relevant promotional material and title cards. These are allegations made in the ongoing proceedings and have not been adjudicated by the court.Justice K Kumaresh Babu granted an interim stay on the film’s release and directed Ajay Gnanamuthu to file his response within four weeks. The matter has been adjourned for further proceedings.

‘Demonte Colony 3’ release plans put on hold

The film had initially been announced for a September 11 release, before the date was brought forward to September 10. Subsequent reports also suggested an October 1 release, although that date had not been officially confirmed. The latest court order has now added another layer of uncertainty to the film’s theatrical plans.The legal dispute concerns the film’s production and associated commercial rights, with the petitioner seeking to prevent its theatrical, OTT and other commercial exploitation pending resolution of the dispute.

Arulnithi, Priya Bhavani Shankar headline the horror franchise

Directed by Ajay Gnanamuthu, ‘Demonte Colony 3’ stars Arulnithi and Priya Bhavani Shankar. The film marks the continuation of the supernatural horror franchise, with Gnanamuthu returning to write and direct the third instalment.The film has music by Sam CS, cinematography by Sivakumar Vijayan and editing by Kumaresh D. Guru Somasundaram is also part of the cast, with the film introducing a mysterious librarian and a supernatural storyline connected to a book.