Bombay High Court Bars 'Tu Hai Meri Kiran' Release Until Co-Producer's ₹8.85 Cr. Investment Is Secured

On Monday, 19 October, the Bombay High Court ruled that Echelon Productions cannot commercially release the Hindi film Tu Hai Meri Kiran, starring Sonakshi Sinha and Zaheer Iqbal, until it secures co-producer AND Movie Products LLP's Rs. 8.85 crore investment with 15% annual interest. The film is scheduled for theatrical release on 23 October 2026.

A Single Bench of Justice Amit Borkar substantially allowed AND Movie Products LLP's petition seeking interim protection of its investment and contractual rights in the film. He observed:

“In my view, the proper way is not to stop the Film from being released in every situation. Such an order would not consider the money, time and effort spent by the Respondents in producing the Film and the possibility of earning revenue from its release. At the same time, it would not be proper to allow the Film to be released and commercially exploited without securing the Petitioner's investment, when the agreement provides for repayment and the prescribed period has expired.”

The dispute arose from a co-production agreement effective 27 March 2024, under which AND Movie Products and Echelon agreed to produce the film with a budget of Rs. 15 crore plus GST. Each party was required to contribute Rs. 7.50 crore plus GST.

AND Movie Products invested Rs. 8.85 crore between 19 March 2024 and 16 January 2025. Clause 5.3 of the agreement required Echelon to repay the investment within 13 months of the agreement or three weeks before the film's first release, whichever was earlier. AND Movie Products alleged that Echelon had failed to repay the investment, furnish production accounts and honour its contractual consent and ownership rights.

On 1 January 2026, Echelon, through Vishal Rana, issued a cheque for Rs. 7.50 crore. The cheque was dishonoured on 2 January 2026, following which AND Movie Products issued a legal notice on 12 January 2026.

After Echelon announced the film's release for 23 October 2026, AND Movie Products approached the High Court under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection. It argued that repayment was overdue and that Echelon could not commercially exploit the film without its prior consent.

Echelon contended that repayment depended on the film's revenue and that AND Movie Products had supported the release through Instagram promotions.

The Court rejected Echelon's interpretation of the repayment clause, holding that the investment became repayable on 27 April 2025, irrespective of the film's subsequent release date. It observed that “the later announcement about the release of the Film cannot extend the time which had expired.”

Further, the Bench held that AND Movie Products' participation in Instagram promotions did not waive Echelon's overdue repayment obligation or authorise agreements for third-party exploitation without the co-producer's consent. However, it considered the promotional participation relevant to its decision not to impose an unconditional restraint on the film's release.

It also clarified that AND Movie Products' participation in promotional collaborations did not permit Echelon to disregard the agreed producer credits, including “Produced by Echelon & AND Movie Productions”.

The Court directed Echelon to disclose executed and proposed exploitation agreements, offers, term sheets, production agreements and amounts received or receivable through an affidavit within five working days.

Echelon must also obtain AND Movie Products' contractual consent before entering into exploitation agreements, maintain the film's revenue in a separate designated account, disclose the account details within three working days and provide regular accounts. Non-compliant publicity credits must be corrected or withdrawn within 48 hours.

The Bench clarified that the deposit would remain as security and could not be released without judicial or arbitral directions. It declined to direct Vishal Rana to personally deposit the amount at this stage, holding that final liability and the other disputes would be decided in arbitration. It also rejected Echelon's request to stay the judgment.

It directed Echelon to deposit Rs. 8.85 crore with 15% annual interest, calculated from the respective investment dates, within three working days, failing which the film cannot be commercially exploited.

Accordingly, the High Court allowed AND Movie Products LLP's petition, subject to the conditions imposed to protect its investment.

Appearances for petitioner (AND Movie Products LLP): Senior Advocate Ashish Kamat, Advocates Rashmin Khandekar, Ashwin Bhadang, Arpit Choudhary, Krunal Mehta, Karen Koya, Akshata Modi and Varun Dhond, instructed by King Stubb & Kasiva.

Appearances for respondents (Echelon Productions, Vishal Rana and Khyati Harendra Shah): Advocates Anand Mohan, Lavin Hirani and Clint G. Thattil, instructed by Advocate Vikramaditya Chavan.