Delhi High Court Temporarily Bars Aashirvad Cinemas From Creating Third-Party OTT Rights In 'Drishyam 3'

The Delhi High Court has temporarily restrained Aashirvad Cinemas from creating any third-party OTT rights in the upcoming Mohanlal-starrer Malayalam film tentatively titled “Drishyam 3”, granting interim protection to Amazon Seller Services Pvt. Ltd. in an arbitration dispute.

Justice Harish Vaidyanathan Shankar held that Amazon had made out a case for ad-interim relief and barred the producers, till the next hearing, from “creating or otherwise dealing with any third-party rights in respect of the non-linear internet-based rights” in the film, including its Malayalam version, dubbed versions, and a potential Hindi remake.

“Keeping in view the submissions advanced by the learned Senior Counsel for the Petitioner at length and in particular, the submissions relating to the triple test, this Court is satisfied that the essential ingredients for grant of interim relief, namely, the existence of a prima facie case, balance of convenience, and likelihood of irreparable harm, stand established in favour of the Petitioner,” the court observed.

“Accordingly, till the next date of hearing, the Respondents are restrained from creating or otherwise dealing with any third-party rights in respect of the non-linear internet-based rights in the film tentatively titled 'Drishyam 3', in terms of prayer clause (b),” it added.

The dispute arises from a Master Video Licence Agreement dated October 16, 2020, between Amazon and Aashirvad Cinemas, which contains an “Amazon Option” clause. Under this arrangement, the producers were required to first notify Amazon and undertake exclusive negotiations for 60 days for any future film in the “Drishyam” franchise. If a third-party offer was received thereafter, Amazon had a right to match that offer within a stipulated period.

Amazon told the Court that it was informed on March 3, 2026 of a third-party offer for “Drishyam 3," following which it exercised its right to match and entered negotiations. However, by an email dated March 31, 2026, the producers terminated discussions, stating that Amazon's rights had “fallen away” and that they would proceed with alternative offers.

It argued that there was a clear and imminent apprehension that Aashirvad Cinemas would create third-party rights in the film, which would irreversibly prejudice its contractual rights, particularly by altering commercial terms and timelines, including the possibility of a simultaneous theatrical and OTT release.

Notably, the previous installment, “Drishyam 2," starring Mohanlal, was released directly on Amazon Prime Video in 2021 instead of a theatrical release.

No one appeared for Aashirvad Cinemas at this stage.

Clarifying that it was not examining the merits of the dispute, the Court held that the requirements for interim relief stood satisfied on a prima facie assessment and granted protection limited to prayer clause (b).

Notice has been issued and the matter will next be heard on April 20, 2026

For Petitioner (Amazon Seller Services Pvt Ltd): Advocates Amit Sibal, Sneha Jain, Devvrat Joshi, Angad S. Makkar, Ankit Handa.