The Madras High Court today refused to stay the release of multi-lingual film 'Baahubali 2' in Tamil Nadu.
Chennai-based film distributor ACE Media had moved the court seeking a stay on the scheduled April 28 release of the film citing unpaid dues of Rs 1.18 crore to it.
ACE Media submitted that M S Sharavanan of Sri Green Productions had taken theatrical exhibition rights of the Tamil movie for the entire state's territory.
In January he had approached ACE for a loan, to be paid to Prabhu Deva Studio Pvt Ltd, on the promise that he would return the amount with an additional sum of Rs 10 lakh before the release of 'Baahubali 2.'
ACE Media proprietor claimed he came to know that Sharavanan was trying to sell theatrical exhibition rights to a third party and that the negotiations took place on April 9 during the film's audio release.
When queried about it, he was informed that the amount would be given after the movie's release.
Describing it contrary to the terms of the February 1, 2017 agreement, ACE Media said its inquiries revealed that the debtor had no intention of returning the money and that he was colluding with others to release the film in the name of a third party.
He sought a stay on distribution, exhibition and release of 'Bahubali 2' in any form anywhere in Tamil Nadu without settling the dues.
But Justice K Kalyanasundaram refused to stay the film's release.
The judge, however, directed Sharavanan to reply to the ACE Media's allegations by April 18.
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