The film was slated to release on December 5.

The controversy stems from a liability of ₹27.70 crore that 14 Reels Entertainment Pvt. Ltd., a group company of the film’s producer 14 Reels Plus LLP, allegedly owes to Eros International Media Ltd. The pending dues prompted Eros to seek court intervention ahead of the film’s scheduled December 5 release.

A division bench of Justices S.M. Subramaniam and Kumarappan restrained the release of Akhanda 2 “in any form,” affecting its theatrical, digital and satellite rollout.

The production house confirmed that a new release date would be announced soon.

“We’ve tried our absolute best to bring Akhanda 2 to the big screens, but despite our tireless efforts, sometimes the most unexpected things happen, and unfortunately, this is that time,” the team said in a statement, apologising to fans and cinephiles worldwide.

The order from the division bench came days after a single judge bench of the same court had refused to grant an interim injunction against the film’s release.

The single judge had held that Section 9 of the Arbitration and Conciliation Act could not be used as a “backdoor” to enforce an arbitral award before the final determination of rights. The court also noted that the legal link between the award-debtor (14 Reels Entertainment) and the film-releasing entity (14 Reels Plus LLP) had not been sufficiently established, and therefore no prima facie case for a stay was made out.

With the division bench now issuing a restraining order, the film’s release stands halted until further legal clarity emerges.

Directed by Boyapati Sreenu, Akhanda 2 stars Nandamuri Balakrishna alongside Samyuktha Menon, Aadhi Pinisetty and Harshaali Malhotra. Continuing the spiritual-action theme of the original Akhanda, the sequel features Balakrishna as an “Aghora” with divine powers who battles rising evil forces.

The film’s music is composed by Thaman S., and early teasers have showcased large-scale action and stylised visuals in keeping with the franchise’s tone.