Kerala High Court stays criminal proceedings against Manjummel Boys' producers in cheating case

The Kerala High Court on Friday stayed the criminal proceedings against the producers of Manjummel Boys movie in a cheating case registered against them.[Babu Shahir v State of Kerala & Anr].Producers Babu Shahir and Shawn Antony and actor-producer Soubin Shahir stand accused in a case registered at the Maradu Police Station, Ernakulam, alleging commission of various offences punishable under the Indian Penal Code including criminal conspiracy, criminal breach of trust, cheating and forgery.Justice Viju Abraham granted an interim order staying the criminal proceedings against them for a period of 1 month..The order was passed on a petition moved by Babu Shahir who is one of the three partners in Parava Films LLP.In November 2022, they entered into an investment agreement with one Siraj Valiyathara Hameed. According to the agreement, Hameed agreed to invest ₹7 crore in a time-bound manner for the production of Manjummel Boys in exchange for 40 percent of the net profit..Following the commercial success of the movie, the defacto complainant-Hameed, alleged that the producers did not pay him the profit as agreed. He approached a commercial court, seeking an order to restrain the petitioners from utilizing the movie's profits. The commercial court issued an ex-parte order attaching the accounts of Parava Films..Subsequently, he filed a criminal complaint alleging that the producers cheated him as they failed to pay profits agreed by them after the success of the movie..Seeking to quash the proceedings in the criminal case, Shahir approached the High Court with the present petition. .Senior Advocate P Vijaya Bhanu, appearing for Shahir, argued that the case against Shahir was premature because the full revenue and expenses for the film haven't been settled yet, as it has only been two months since its release.He referred to clause 6 of the investment agreement as per which Hameed would receive his share of the profits only after all financial matters are settled..The Senior Advocate also highlighted that the petitioner had already paid ₹50 lakh to Hameed and was ready to pay the due amount but was currently unable to process the funds since the accounts were attached pursuant to the ex-parte order, pending arbitration proceedings.He also informed the Court that the other two producers, Soubin and Antony, had earlier moved High Court to obtain anticipatory bail in the same criminal case and the Court had granted them interim protection from arrest..The Court today issued notice to the State and Hameed and decided to hear the matter further after 10 days. .Shahir was represented by Senior Advocate P Vijaya Bhanu and advocates Thomas J Anakkallunkal, Vijay V Paul, Deepa Jose George, Anupa Anna Jose Kandoth, Jayaraman S, Dhanya Sunny and Ann Milka George..[Read Order]