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Arulnithi and Ajay Gnanamuthu’s ‘Demonte Colony 3’ faces release roadblock as Chennai High Court grants interim stay over production and distribution rights dispute |


Arulnithi and Ajay Gnanamuthu's ‘Demonte Colony 3’ faces release roadblock as Chennai High Court grants interim stay over production and distribution rights dispute

The release plans for ‘Demonte Colony 3’, starring Arulnithi and directed by Ajay Gnanamuthu, have hit a legal roadblock. The third instalment of the horror franchise is facing a dispute over its production and distribution rights, with the Chennai High Court granting an interim stay on its release. The development has put the film’s release plans on hold as the court considers the claims raised in the petition.

Chennai High Court stalls release of ‘Demonte Colony 3’ over rights row

According to a report by News18, the Chennai High Court ordered an interim stay on the release of ‘Demonte Colony 3’ following a petition filed by A. Vijaya Subramanian, owner of White Nites Entertainment. The petitioner alleged that the film was made and dealt with without her knowledge despite an earlier agreement concerning the franchise. After hearing the matter, the court directed that the film should not be released while the dispute is being addressed. The interim order has consequently created uncertainty around the film’s release plans.

Ajay Gnanamuthu faces legal challenge over ‘Demonte Colony 3’ production

The dispute reportedly relates to an agreement signed in 2023 between filmmaker Ajay Gnanamuthu and A. Vijaya Subramanian’s White Nites Entertainment. According to the petition, the agreement covered the production and distribution of ‘Demonte Colony 2’ and subsequent instalments, including ‘Demonte Colony 3’ and ‘Demonte Colony 4’. The petitioner claimed that the films were to be produced and released through a jointly associated company. However, the petition alleges that ‘Demonte Colony 3’ was instead produced through Passion Film Factory, with certification and OTT-related arrangements also made under the company’s name. These claims are part of the ongoing legal proceedings and remain subject to the court’s consideration.

‘Demonte Colony 3’ release put on hold until dispute is addressed

The petition also referred to a clause in the agreement that reportedly required disputes connected with the film’s release and rights to be taken to mediation. On the basis of this provision, the petitioner sought a stay on the film’s release until the dispute could be resolved. Justice Kumeresh Babu, who heard the matter, granted the interim stay and directed Ajay Gnanamuthu to respond to the proceedings within four weeks. The hearing has been adjourned. As a result, the release of ‘Demonte Colony 3’ remains temporarily uncertain pending further proceedings in the case.

More about ‘Demonte Colony 3’

‘Demonte Colony 3’ is the latest instalment in the horror franchise headlined by Arulnithi and directed by Ajay Gnanamuthu.



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