City civil court judge R T Vatsani issued notices to Red Chillies Entertainment Private Limited, Khan's production house, and co-producers Excel Entertainment and Rahul Dholakia Productions. Replies are to be filed by May 11.
The film is reportedly based on Latif's life. His son Mustaq Ahmad also sought injunction against the release of the film as well as its promotional material.
The second part of the film shows Latif in a very defamatory manner and damages the family's reputation, the suit says, while demanding Rs 101 crore in damages.
The film, starring Shahrukh, Nawazuddin Siddiqui and Mahira Khan, tells the story of Raees Khan, a bootleggar who operated in 1980s Gujarat. It will release on July 3.
Latif, wanted in dozens of cases of murder, kidnapping and bootlegging, was said to be a part of Dawood Ibrahim gang. He was arrested in 1995 and killed by police in 1997 while trying to escape from Sabarmati jail here.