IMAX Corporation has won in the Bombay High Court its decades-old contract dispute with E-City Entertainment, with the award now amounting to over USD $28 million with accumulated interest.
Bombay High Court rules in favor of IMAX in decades-old dispute with E-City; Approves execution of $28+ million awards; Spends Rs. 5 lakh cost
On December 30, 2025, the Bombay High Court ruled in favor of IMAX on all issues in the enforcement proceedings, which IMAX has been litigating for nearly 18 years, holding that the arbitration awards issued in favor of IMAX between 2006 and 2008 “will now be deemed orders of the court and executable”.
The arbitration arose out of a disagreement in September 2000 over a contract to lease six IMAX systems to E-City, the former operator of cinema and entertainment brands Fun Cinemas and Fun Republic, and Zee Entertainment Enterprises Ltd, an affiliate of the Essel Group headed by Subhash Chandra. E-City agreed to open a minimum of six IMAX locations in India, but later reneged on that agreement.
In its judgement, the High Court wrote, “E-City has managed to keep IMAX away for more than two decades. IMAX is being denied the benefits of foreign awards by making all kinds of pleas, in the hope that at least some of them will survive. Neither the public policy of India nor the pro-enforcement bias, which deals with the enforcement of specific foreign awards, would justify the provisions under Part II of the Arbitration and Conciliation Act, 1996.” This gives rise to a disincentive to enforce foreign awards based on such arguments.”
The court also imposed a fine of Rs. 5 lakh on E-City, IMAX has to pay within four weeks, citing the approach of protracted and speculative litigation.
The court also directed the parties to appear before the execution court on January 19, 2026 at 11:00 am so that the execution process can proceed.
For IMAX, this order is a clear signal that long-pending foreign arbitration awards will not be allowed to remain merely on paper, and accountability can be enforced through the courts even after decades.
