The theatrical release of Arulnithi’s ‘Demonte Colony 3’ has been temporarily halted by the Madras High Court following a dispute concerning the film’s production and associated rights.
The legal proceedings were initiated by A Vijaya Subramanian, authorised signatory of White Nights Entertainments, against filmmaker Ajay Gnanamuthu.
According to the petition, White Nights Entertainments and Gnanamuthu entered into a partnership agreement in January 2023 for producing, marketing and distributing films. The petitioner claimed that the arrangement also covered subsequent films in the ‘Demonte Colony’ franchise, including the third and fourth instalments.
After the success of ‘Demonte Colony 2’, the parties allegedly decided to jointly produce the third film under the terms of their earlier agreement.
Subramanian alleged that Gnanamuthu later partnered with Passion Studios without informing him and conducted a pooja ceremony for the project in July 2025.
The petition further stated that Gnanamuthu subsequently maintained that Passion Studios was involved only in technical and logistical work. According to the petitioner, White Nights Entertainments was still supposed to continue as a co-producer and retain its production credit and agreed share of the profits.
Subramanian also alleged that the film was sent for certification without his knowledge and that both his name and the production company’s name were removed from the relevant documents.
‘DeMonte Colony 3’ obtained certification from the Central Board of Film Certification on July 14, 2026. Seeking interim protection, Subramanian asked the High Court to prevent the film from being released or commercially exploited in theatres, on streaming platforms or through other means until the arbitration proceedings are concluded.
Justice K Kumaresh Babu has granted an interim stay on the release and directed Gnanamuthu to submit his response within four weeks. Further proceedings will follow after the director’s reply is received.