The Madras High Court on Thursday heard a tangled dispute between two major film‑production houses over payments, intellectual‑property rights and alleged breaches of contract. Dawn Pictures Private Limited alleged that acclaimed director Sudha Kongara concealed the receipt of ₹4.12 crore from 2D Entertainment Private Limited for writing the script, screenplay and dialogues of the movie Parasakthi.

Background of the Conflict

Kongara first entered into a director’s agreement with 2D Entertainment on 6 June 2021, which stipulated a remuneration of ₹12.5 crore. The project never materialised, prompting her to sign a termination agreement on 18 December 2024. Under that agreement, she was to surrender all intellectual‑property, moral and exploitation rights to 2D upon receipt of a full and final payment of ₹4.12 crore.

Dawn Pictures’ Counter‑Affidavit

According to Dawn Pictures, the producer acquired the movie’s IP rights from 2D for ₹5.8 crore and subsequently paid Kongara an additional ₹8.5 crore (excluding GST). The company claims it made these payments without knowledge of the termination clause that already transferred the rights to 2D. Consequently, Dawn Pictures argues it over‑paid the director while the underlying rights remained with the original producer.

Compounding Issues

The dispute is further complicated by a November 2025 leak of the film’s footage, which forced Dawn Pictures to engage specialised anti‑piracy agencies to scrub the content from digital platforms. The leak reportedly diminished the OTT sale value of the movie. Moreover, a script‑writer filed a copyright suit just days before the theatrical release, compelling Dawn Pictures to incur significant legal expenses in defence.

Court’s Interim Ruling

Justice K. Kumaresh Babu reserved orders on Kongara’s application to restrain the release of her upcoming project Idhayam Murali, starring Atharvaa, until Dawn Pictures’ pending dues of ₹8.39 crore are settled. The judge emphasized that the intertwined agreements must be examined holistically before granting any interim injunction.

The case underscores the growing complexity of contractual relationships in Indian cinema, where multiple parties often share overlapping rights and financial obligations. Legal scholars suggest that clearer termination clauses, rigorous due‑diligence, and transparent accounting could mitigate such disputes in the future.