The woes of the producers of Baahuali 2 are far from over in Tamil Nadu, with a Madras High Court judge issuing a notice to the owner of the theatrical rights of the movie seeking a response on a civil suit filed by a film distributor, reports TOI. Although, the HC did not agree to stay the release of the movie.

The film distributor approached the Madras High court for a stay on the film's release earlier. He had alleged unpaid dues to the tune of 1.18 crore by MS Sharavanan of Sri Green Productions.

The Chennai-based ACE Media, in its civil suit, claimed that Sri Green Productions had taken theatrical exhibition rights of the Tamil movie for the territory of Tamil Nadu. In January 2016, he had reportedly approached ACE for loan, which should be paid to M/s Prabhu Deva Studio Pvt Ltd. The loan was given on the condition that he the amount will be returned along with an additional sum of Rs 10 lakh before the release of the movie.

ACE Media proprietor however now alleges that he witnessed Sharavanan trying to sell theatrical exhibition right to third parties. He claims to have seen the efforts on April 9, when the film's audio release took place. When questioned, Sharavanan allegedly said he will return the money after the release of the movie. 

Calling it ‘contrary to the terms of agreement dated February 1, 2017,’ ACE has alleged that its 'inquiries 'revealed that the debtor had no intention of returning the money. Sri Green Production has further been accused of trying to release the film in the name of third parties. 

Following this, ACE media has sought stay on distribution, exhibition and release of Baahubali 2 in any form anywhere in Tamil Nadu without settling the dues they claim were agreed upon. The suit is scheduled to come up before Justice K Kalyanasundaram for hearing on Thursday.

The sequel of this magnum opus war film, has reportedly already made Rs 475 crore, merely through distribution rights. The movie will be released in Tamil, Malayalam, Telugu and Hindi.