Kottayam: The Kerala High Court on Tuesday stayed proceedings in a ₹1.9 crore cheating case filed against Malayalam actor Nivin Pauly and director Abrid Shine. Justice V G Arun issued the interim order after jointly hearing petitions from both. The decision came in response to a complaint filed by P S Shamnas, proprietor of Indian Movie Makers, at Thalayolaparambu Police Station, Kottayam.

Shamnas alleged that following the poor box office performance of Mahaveeryar, in which he invested ₹3.5–4 crore, the accused promised him a co-producer role in Action Hero Biju 2 and a share of overseas profits. He claims they later concealed title transfer details and relied on an outdated agreement to sell overseas rights to a Dubai-based firm for ₹5 crore, causing him wrongful loss.

A criminal case was registered under IPC Sections 406 (criminal breach of trust), 420 (cheating), and 34 (common intention). However, the petitioners argued the matter was civil in nature, pointing to an earlier police report which found no grounds for criminal investigation. They contended that the Magistrate erred in forwarding the complaint for investigation without considering that report or conducting further inquiry.

The court noted merit in this contention, observing that the Magistrate could not have referred the complaint to police under Section 175(3) without addressing the earlier findings. Counsel for the petitioners also cited the Supreme Court’s ruling in Delhi Race Club (1940) Ltd v State of UP [2024 KHC Online 6452], asserting the Magistrate acted mechanically.
(With LiveLaw inputs)

The petitioners have also accused Shamnas of forging Nivin Pauly’s signature in documents submitted to the Kerala Film Chamber of Commerce, for which a separate complaint is pending. The matter is scheduled for further hearing on September 11.