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The veteran Mollywood actor responded to Shah Rukh Khan's post on X.
A video of the actor smiling and waving at the massive crowd has gone viral on social media.
They played the song 'Deewangi Deewangi' from the SRK-starrer 'Om Shanti Om'.
Some questioned the need for Atlee's action, suggesting he should have shown respect to a South Indian director instead.
During the lively interaction, Shah Rukh Khan playfully uttered a series of nonsensical words, possibly in Telugu or Tamil, prompting a mixed reaction from attendees.
K J Yesudas, who turned 84 recently, was felicitated for his Outstanding Contribution to the Music Industry.
The Academy's post generated fervour on the internet, with comments ranging from expressions of The Academy members being SRK fans to recognizing Shah Rukh Khan as the biggest global artist.
The actor said there is a lot of pressure involved when playing an antagonist.
The sweet surprise of the year will be Shah Rukh Khan's appearance with daughter Suhana in an untitled murder mystery film.
Outshining his peers, King Khan accomplished unprecedented success with a string of hits throughout the year, starting with 'Pathaan' on January 25 and culminating with his final release, 'Dunki,' on December 21.