Madras High Court Dismisses Creditors' Appeal Against Release Of "Dhruva Natchathiram" Movie

The Madras High Court has dismissed appeals filed by creditors of actor-director Gautam Vasudev Menon, challenging an order of a single judge paving the way for the release of the much-anticipated Tamil movie "Dhruva Natchathiram".The bench of Justice P Velmurugan and Justice K Govindarajan Thilakavadi has dismissed the appeals filed by K Prem Kumar and K Punniyamoorthy. A detailed order is awaited.It may be noted that on April 30, 2026, a single judge of the High Court had permitted the release of the movie subject to certain conditions. The court had ordered that an escrow account be created in the name of Kondaduvom Entertainment, a company owned by Menon. The court has directed that all the transactions that are to be done before and after the movie's release be done through the account. An advocate commissioner has also been appointed to oversee the transactions in the account.The court had passed the orders on the plea filed by two creditors - K Punniyamoorthy and K Premkumar, who sought to restrain the movie's release in light of pending dues. In 2023, the court passed an interim injunction order restraining the release of the movie.The creditors, K Punniyamoorthy and K Premkumar, had informed the court that they had entered into an agreement with Escape Artists Motion Pictures, one of the producers of Dhruva Natchathiram, for the theatrical distribution of the Tamil movie “Enai Noki Payum Thotta”. However, a financial dispute arose between the parties, and arbitration proceedings were initiated. Eventually, the parties signed a Memorandum of Understanding (MoU) in 2018, through which the proprietor of Escape Artist gave away 50% of his rights in the Dhruva Natchathiram movie to the producers.When an announcement was made to release the movie in 2023, the creditors approached the court seeking to restrain the release. It was argued that the movie was their security to get back their dues. The court had allowed an interim injunction petition and stalled the release of the movie in 2023. Since the movie had been stalled for a long time, the court asked the creditors if they would be willing to permit the release of the movie, if the payments were secured. The creditors then agreed for the movie's release, subject to certain conditions. The makers of the movie also agreed to make payments before and after the release of the movie. However, at this point, third-party creditors intervened in the matter against the release of the movie.However, the third party creditors informed the court that they have no objection to the release of the movie, subject to making payments to them. Considering the submissions, and Menon's affidavit informing the court regarding payments that would be made to the creditors before and after the release of the movie, the court ordered the setting up of an escrow account for depositing all amounts. The court added that all payments required to be made after the release of the movie shall be made only from and out of this account. The court had also taken note of the submission made by the movie makers that attempts would be made to release the movie by June 15.It may also be noted that Menon has now approached the High Court seeking to extend the time limit for the movie's release. Justice K Kumaresh Babu has adjourned the plea to Wednesday (June 17), and decided to await the order of the division bench.Case Title: K Punniyamoorthy v Escape Artists Motion Pictures and othersCitation: 2026 LiveLaw (Mad) 254Case No: OSA (CAD) 63 of 2026

Madras High Court Dismisses Creditors' Appeal Against Release Of "Dhruva Natchathiram" Movie

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Madras High Court Dismisses Creditors' Appeal Against Release Of "Dhruva Natchathiram" Movie

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