The Madras High Court on Thursday refused to transfer distribution rights to a third party for the release of the multi-lingual film 'Bahubali 2'.
The court also sent a notice to Sri Green Productions, who has the theatrical rights of the movie, citing unpaid dues.
The matter will next be heard on April 18.
Chennai-based ACE Media, in its civil suit against M S Sharavanan of Sri Green Productions, moved the Madras High Court, seeking a stay on the April 28 release of 'Bahubali 2' in Tamil Nadu, citing unpaid dues of Rs 1.18 crore.
According to the civil suit, Sri Green Productions had taken theatrical exhibition rights of the Tamil movie for the entire Tamil Nadu territory.
In January 2016, he had approached ACE for a loan, to be paid to Prabhu Deva Studio, on the promise that he would return the amount with an additional sum of Rs 10 lakh before the release of 'Bahubali 2'.
ACE Media proprietor claimed that he found Sharavanan trying to sell theatrical exhibition rights to third parties and that negotiations took place on April 9 during the film's audio release.
Terming it contrary to the terms of the February 1, 2017, agreement, ACE said its inquiries revealed that the debtor had no intention of returning the money and that he was colluding with third parties to release their film.
The movie, starring Prabhas, Rana Daggubati, Tamannah Bhatia, Anushka Shetty, Ramya Krishna and others, is gearing up for grand release on April 28 in Telugu, Tamil, Malayalam and Hindi languages.