The Kerala High Court has quashed criminal proceedings against Malayalam actor Nivin Pauly and filmmaker Abrid Shine in an alleged ₹1.9 crore financial dispute linked to the film Action Hero Biju 2. Justice P. V. Balakrishnan passed the orders on October 26, 2026, after the parties reached an amicable settlement. The Court also quashed a separate criminal case against producer P. S. Shamnas concerning allegations of forgery.
Background
Shamnas, proprietor of Indian Movie Makers, had alleged that he suffered financial losses after investing in the film project. The complaint led to the registration of a criminal case against Pauly and Shine under Sections 406 and 420 read with Section 34 of the Indian Penal Code, concerning criminal breach of trust and cheating.
In a separate proceeding, Pauly accused Shamnas of forging his signature on documents submitted to the Kerala Film Chamber of Commerce. The parties subsequently settled their disputes and approached the High Court seeking the quashing of the criminal proceedings.
In Abrid Shine's petition, the Court noted that the complainant had no remaining grievance and did not wish to pursue the case. The State also confirmed that the settlement was genuine and raised no objection to quashing the proceedings.
Justice Balakrishnan observed:
"The learned Public Prosecutor, on instructions, vouches for the settlement reached between the parties and submitted that it is a genuine and bona fide settlement. He also submitted that the State has no objection in quashing the proceedings against the petitioner."
The Court further held that continuing the prosecution would serve no useful purpose, considering the nature of the allegations and the likelihood of conviction.
It stated:
"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 and putting the petitioner to trial will only result in wastage of time and energy."
The High Court allowed the petitions and quashed the criminal proceedings against Pauly and Shine in the cheating case, along with the separate proceedings against Shamnas concerning the alleged forgery.
