# Madras High Court stays release of Demonte Colony 3

2026-09-18T08:01:58+00:00 | Entertainment | Indian Opinion Desk

Corroboration: 2 independent outlets

The Madras High Court has ordered an interim stay on the release of "Demonte Colony 3," the upcoming horror film starring Arulnithi and directed by Ajay Gnanamuthu. Justice K Kumaresh Babu issued the stay after a petition by A. Vijaya Subramanian of White Nites Entertainment alleged violations of a 2023 partnership deed covering production and distribution rights for the franchise. The court directed Gnanamuthu to file his response within four weeks. Both Times of India and Cinema Express report that the petition claims the film was produced through Passion Studios instead of the jointly agreed company, and that Subramanian's name was excluded from promotional material and the CBFC certification. The petition also points to a clause requiring disputes to go to mediation. The film, which had been slated for an October 1 release, now faces uncertainty pending the court's further consideration.

## Indian Opinion Analysis

The court granted an interim stay, not a final verdict. Times of India and Cinema Express both report essentially the same facts from the petition and the court order, giving neither side an editorial advantage. The coverage is uniform straight reporting of a pending litigation. No outlet has assessed the merits of White Nites Entertainment's claims or Ajay Gnanamuthu's defence, which must be filed within four weeks. The legal question is whether the 2023 partnership deed covered the third film or was bypassed by Passion Studios' involvement. The key number is four weeks: after that deadline, the court will decide if the stay continues or if the film can be released.

## Coverage

- timesofindia.indiatimes.com (neutral report) <https://timesofindia.indiatimes.com/entertainment/tamil/movies/news/arulnithi-and-ajay-gnanamuthus-demonte-colony-3-faces-release-roadblock-as-chennai-high-court-grants-interim-stay-over-production-and-distribution-rights-dispute/articleshow/134328404.cms>
  Straight news report of court order and petition allegations, no slant or editorialising
- cinemaexpress.com (neutral report) <https://www.cinemaexpress.com/tamil/news/2026/Sep/18/demonte-colony-3-release-in-trouble-madras-hc-issues-interim-stay>
  Detailed factual account of petition and court proceedings, no editorial stance

Tags: Ajay Gnanamuthu, Arulnithi, Demonte Colony 3, Madras High Court, Passion Studios
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