The production company, Anil Kapoor Film Co Pvt Ltd, owned by the actor agreed before Justice Reva Chetrapal to pay Rs 35 lakhs to B S Bhullar who claimed copyrights over the title Short Kut.
The movie, starring Akshay Khanna, Arshad Warsi and Amrita Rao, is scheduled to be released on Friday.
Bhullar had alleged that Kapoor had copied the title of his film after he gave script to the actor and offered him a role in his proposed movie.
The High Court had on July 7 issued notice to the film company and and sought its reply on the matter. Bhullar had alleged he had registered the title Short Kut with the Films Association in September 2005 and the Bollywood actor's production company copied it in an "illegal and unauthorised" manner.