The Tamil Nadu Theatre Owners' Association has issued an ultimatum to Sun Pictures to refund deposits of over Rs 2.5 crore within a week or face 'non-cooperation' on screening any films distributed by the company or those whose satellite rights have been given to Sun TV.

General secretary of the association, R. Panneerselvam said, "We hardly collected any money from Sun Pictures. Initially they agreed to settle the remaining Rs 2.5 crore but the response we're getting now from them is not favourable."

Panneerselvam explained that the deposit fund had nothing to do with the success or failure of a film, and it was mandatory for producers to repay the deposit fund to the theatres.

Sources in the industry said the theatre owners pay a deposit for screening a movie. 'If the collection is above the deposit amount, the owner has to pay the extra money. The producer should repay the deposit amount if the movie collection is below the minimum guarantee,' said a producer, explaining the business module.

Sun Pictures' movies Enthiran, Maappillai, Vettaikaran and Sura collected below the minimum guarantee in some theatres. Theatre Owners' Association claims that the pending dues are to approximately Rs 2.5 crore.