IMAX scores legal victory against E-City after two-decade battle
In a major court win that has implications for cinema operators and the big-screen business in India, the Bombay High Court has ruled in favour of IMAX Corporation in a long-running dispute with E-City Entertainment. The judgment, delivered on December 30, 2025, enforces arbitration awards dating back to 2006–2008 and makes them executable as court decrees — covering awards now exceeding $28 million USD with accumulated interest.
What the court decided
The High Court held that the foreign arbitration awards in IMAX’s favour “shall now be deemed to be the decrees of the court and executable.” The bench was critical of E-City’s lengthy defence strategy, observing that the company had managed to keep IMAX “at bay for over two decades.”
“The fruits of the foreign awards are being denied to IMAX by raising all kinds of pleas, in the fond hope that at least some might stick. Neither the public policy of India nor the pro-enforcement bias … promotes the frustration of enforcement of foreign awards based upon such pleas.”
The court also ordered E-City to pay costs of Rs. 5 lakhs to IMAX within four weeks, citing the prolonged and speculative nature of the litigation.
How this dispute began
The conflict traces back to a September 2000 contract under which E-City, the former operator behind Fun Cinemas and Fun Republic and an affiliate of the Essel Group, agreed to lease six IMAX systems and open at least six IMAX locations across India. E-City later failed to fulfil that commitment, leading IMAX to initiate arbitration. Awards were issued in IMAX’s favour between 2006 and 2008, but enforcement was delayed by two decades of legal challenges.
Timeline at a glance
- September 2000: Contract signed to lease six IMAX systems to E-City.
- 2006–2008: Arbitration awards issued in favour of IMAX.
- Nearly 18 years: IMAX pursued enforcement proceedings in Indian courts.
- December 30, 2025: Bombay High Court declares arbitration awards executable as court decrees.
- January 19, 2026: Parties instructed to appear before the executing court to begin the execution process.
What this means for the film and exhibition industry
The ruling sends a clear message: foreign arbitration awards cannot be left unenforced indefinitely. For cinema chains, equipment licensors and international suppliers, the decision reinforces the idea that contractual commitments will be taken seriously by Indian courts — even after long delays.
For IMAX, the order brings the company a step closer to recovering a substantial award. For E-City and its affiliates, including business interests once associated with the Essel Group and Zee, the judgment underscores the consequences of failing to honour cross-border commercial agreements.
Next steps
The Bombay High Court has directed both parties to appear before the executing court on January 19, 2026 at 11:00 am so the enforcement process can move forward. With the awards now deemed decrees, the executing court will take steps to implement the judgement and secure payment.
Whatever the final outcome, the case is a reminder that even disputes rooted in the early days of India’s multiplex boom can resurface — and that the law can tighten the curtain on long-standing contractual quarrels.
