Delhi High Court Refers To Arbitration Dispute Over Rights In Parabhas-Starrer 'The Raja Saab'

The Delhi High Court has referred to arbitration the dispute between People Media Factory Private Limited and IVY Entertainment Private Limited over rights in the Telugu film “The Raja Saab” starring actor Prabhas.

Justice Tejas Karia noted that both the companies, by mutual consent, agreed to refer their suits concerning copyright and IPR in the film to arbitration after entering into an Arbitration Agreement on September 26.

PMF is engaged in the business of production of cinematographic films whereas IVY is engaged in the business of acquisition and syndication of rights in Cinematographic films.

Both the companies entered into a binding Term Sheet recording the commercial terms for monetization of the Film. They also entered into Film Rights Assignment Agreement, Amendment to FRAA and Theatrical Rights Acquisition Agreement determining their rights and obligations with respect to the movie.

As IVY had apprehensions regarding the stage of production and recurring delays in the theatrical release of the Film, PMF sought to revise the theatrical release date to September 2025, however, the proposed agreement to revise the delayed theatrical release was never finalised by the parties.

PMF then sent a letter to IVY stating that it had failed to exploit the non-theatrical rights of the film. Thereafter, IVY sought to terminate the FRAA and the TRAA.

By way of the Termination Notice, the IVY sought for a refund of the entire amount disbursed by it under the TRAA and FRAA together with interest at the rate of 18% and contended that consequent to the termination, all theatrical or non-theatrical rights assigned to PMF stood automatically reverted to it.

The notice also said that until the said refund is paid by PMF, all rights, title and interest created in its favour under the TRAA in respect of the Film stood automatically transferred and vested in the IVY.

PMF then filed the suit challenging the termination notice and to restrain IVY from hindering it from exploiting their rights in the film. On the other hand, IVY filed the suit to protect its Intellectual Property Rights in the film.

During the pendency of the proceedings, the parties entered into a settlement as per which PMF undertook to release the film on or before January 09, 2026 and no later than January 31, 2026.

It was also agreed that the Film shall not be released until the entire payments are made by PMF to IVY.

As per the arrangement, PMF undertook to pay an amount of Rs. 100 crore to IVY, towards the principal amount of Rs. 218 crore on or before October 03.

It further undertook to pay the balance principal amount to IVY on or before November 30, after adjusting the amount already received till date.

Disposing of the suits, the Court directed both the companies to be bound by the Terms of the Consent Minutes as entered into between them.

“The Parties are referred to Arbitration in accordance with the Arbitration Agreement under Section 8 of the Arbitration Act before the learned Sole Arbitrator agreed between the Parties,” the Court said.

It directed PMF and IVY to appear before the Arbitration Tribunal in accordance with the Arbitration Agreement for adjudication of the disputes in accordance with FRAA, FRAA Amendment, TRAA and Consent Minutes.

“All the rights, claims and contentions between PMF and IVY are left open to be adjudicated by the learned Tribunal on merits, in accordance with the applicable law,” Justice Karia ordered.

Title: PEOPLE MEDIA FACTORY PRIVATE LIMITED v. IVY ENTERTAINMENT PRIVATE LIMITED & other connected matter

Citation: 2025 LiveLaw (Del) 1262

Click here to read order