The Kerala High Court has quashed the criminal proceedings against Malayalam film actor Nivin Pauly and director Abrid Shine in connection with a ₹1.9 crore fraud over the film Action Hero Biju 2 [Abrid Shine v State of Kerala & anr and connected case].
Justice PV Balakrishnan passed the order after noting that the parties had reached an amicable settlement and no longer had any grievances against each other.
The Court also quashed a separate criminal case registered against the complainant and film producer PS Shamnas over allegations that he forged Pauly's signature in documents submitted to the Kerala Film Chamber of Commerce.
"I am of the view that the petitioner and the 2nd respondent have amicably settled the disputes which led to the registration of the crime. It also shows that the offences alleged against the petitioner are not serious in nature and do not have a serious impact on society. That apart, I am of the view that no purpose will be served in continuing with the prosecution since, the chances of the petitioner getting convicted are bleak," the Court added.
The fraud case against the actor and director arose from a complaint by Shamnas who alleged that he had invested around ₹1.9 crore in the sequel project after suffering losses from an earlier film, 'Mahaveeryar', directed by Shine and starring Pauly.
Shamnas claimed he was promised official producer rights and a share in profits but was later cheated when the title and rights were allegedly transferred without his consent and sold overseas to a Dubai firm for ₹5 crore.
Based on his complaint, a First Information Report (FIR) was registered under Sections 406 (criminal breach of trust), 420 (cheating) and 34 (common intention) of the Indian Penal Code (IPC).
Pauly subsequently filed a separate complaint alleging that Shamnas forged his signature in documents, which led to the registration of a criminal case against him.
In August 2025, the High Court granted interim relief to Pauly and Shine, by staying the criminal proceedings instated against them.
The parties later approached the Court seeking to quash the criminal proceedings after reaching a settlement.
The public prosecutor confirmed that the settlement was genuine.
Taking note of the settlement and the nature of the allegations, the Court allowed the petitions and quashed the criminal cases against Pauly, Shine and Shamnas.
Advocates S Rajeev, V Vinay, MS Aneer, Sarath KP, Anilkumar CR, KS Kiran Krishnan, Dipa V, Akash Cherian Thomas, and Azad Sunil appeared for Shine.
Advocate Millu Dandapani appeared for Pauly.
Advocates S Mohammed Al Raji and Thajuna Maria Francis appeared for Shamnas.
[Read Order]