20th Century Fox has sued BR Films for 70m rupees (£940,000) at Mumbai's High Court, saying Banda Yeh Bindaas Hai is an illegal remake.
The script and storyline is virtually identical to the original US movie, the studio contends.
BR Films has rejected the allegations, saying their film was original.
It argues the characters and settings for their release were different.
Long history
Fox said that the Bollywood studio was given permission to use the film's idea for the basis of a new production, but the rights for a Hindi language remake had not been approved.
The Indian movie industry has a long history of remaking Hollywood productions for the local market.
Recent objections from US film-makers have included a possible remake of The Curious Case of Benjamin Button, which has been threatened with legal action.
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