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Court Orders Enforcement of IMAX Awards Against E-City
The Bombay High Court has delivered a significant victory to IMAX Corporation, clearing the path for the enforcement of substantial foreign arbitral awards against E-City Entertainment, the Indian company founded by Subhash Chandra. The ruling, issued on December 30, 2025, allows IMAX to treat the awards as decrees of the court.
Decades-Long Arbitration Culminates
This decision overturns a prior order from October 24, 2024, by a single judge who had refused to recognize three foreign arbitral awards granted between 2006 and 2008 by an International Chamber of Commerce (ICC) Arbitral Tribunal in London. E-City Entertainment's objections to the enforcement were largely rejected by the division bench.
The Core Dispute
The legal battle stems from a master agreement signed on September 28, 2000, where E-City Entertainment leased six IMAX systems for a 20-year term. Disputes emerged between 2003 and 2004. IMAX subsequently initiated arbitration, claiming $18.3 million plus interest. The ICC tribunal ultimately awarded IMAX $11.3 million, with additional interest calculated at $2,512.60 per day from October 1, 2007. By March 31, 2018, the total due had ballooned to $20.86 million.
Asset Diversion and Delay
The High Court's bench noted E-City Entertainment's nearly two-decade delay in enforcing the awards. It also highlighted the diversion of assets worth ₹210 crore to group entities under schemes of arrangement in 2007, during the arbitration proceedings. The court characterized these actions as an attempt to frustrate the enforcement process through speculative litigation.
Path to Recovery
The case has been remanded to a single judge to proceed with executing the awards against E-City Entertainment and its assets. However, the court clarified that subsidiary entities E-City Entertainment (India) Pvt Ltd, ECity Projects Construction Pvt Ltd, and ECity Investments and Holdings Company are not personally liable, though they can be pursued for assets transferred to them. E-City Entertainment and these related entities are temporarily restrained from dealing with their properties and bank accounts until further court orders. The court also imposed costs of ₹5 lakh on E-City Entertainment. Parties are scheduled to appear before the executing court on January 19, 2026.