The Delhi High Court has directed that a dispute over rights in the Telugu film “The Raja Saab,” starring Prabhas, be resolved through arbitration. The dispute is between People Media Factory Private Limited (PMF) and IVY Entertainment Private Limited, which had previously agreed by mutual consent to refer their disagreements to arbitration in light of an Arbitration Agreement.
PMF is in the business of producing cinematographic films, while IVY is engaged in acquiring and syndicating rights in such films. The parties entered into a Term Sheet setting forth commercial terms for monetization, followed by execution of a Film Rights Assignment Agreement (FRAA), an amendment to that FRAA, and a Theatrical Rights Acquisition Agreement (TRAA), which delineated their respective rights and obligations with respect to “The Raja Saab.” Disputes arose when IVY raised concerns over production delays and sought termination of the FRAA and TRAA, asserting that PMF had failed to exploit the non-theatrical rights of the film. IVY served a termination notice claiming entitlement to refund the amounts it had disbursed under the TRAA and FRAA, along with interest. It further contended that upon termination, all rights previously assigned to PMF should revert to IVY.
In response, PMF filed suit challenging the termination notice and seeking to restrain IVY from interfering with its exploitation of the film. IVY, in turn, pursued legal relief to protect its asserted intellectual property rights in the film. During the pendency of these suits, both parties executed a settlement. Under the settlement, PMF agreed to release the film no later than January 31, 2026, provided it made full payment to IVY. PMF also committed to paying a substantial portion of the principal amount owed by early October, with the balance to follow by the end of November, after adjusting for amounts already received.
In disposal of the suits, the High Court directed that both parties adhere to the terms of the consent minutes. Invoking Section 8 of the Arbitration and Conciliation Act, the Court ordered the parties to be bound by their Arbitration Agreement and to appear before a sole arbitrator jointly agreed upon to adjudicate all disputes between them. The Court left all rights, claims, and contentions open for resolution by the tribunal on their merits in accordance with the applicable agreements and law.
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