Kochi: The Kerala High Court on Thursday extended the interim stay granted to Malayalam actor Nivin Pauly and filmmaker Abrid Shine in the cheating case filed against them by producer PS Shamnas.

Shamnas has alleged that the accused caused him a wrongful loss amounting to ₹1.9 crore.

When the matter was taken up, counsel representing Nivin Pauly and Abrid Shine informed Justice CS Dias that their clients were not willing to pursue a settlement through mediation. Although the Court had earlier referred the dispute to mediation, the process did not proceed because the duo did not participate.

Taking note of this, the judge orally observed: "Mediation no compulsion. You don't go, I have no problem. Yes, you need not participate. There is no problem."

The Court recorded the submission and extended the interim stay on all further proceedings in the case for two weeks. The matter is now scheduled to be heard on January 22.

A criminal case had been registered against Nivin Pauly and Abrid Shine under Sections 406 (punishment for criminal breach of trust) and 420 (cheating), read with Section 34 (acts done by several persons in furtherance of common intention) of the Indian Penal Code. The FIR was based on a complaint lodged by PS Shamnas, proprietor of Indian Movie Makers, at the Thalayolaprambu Police Station in Kottayam.

According to Shamnas, following the box-office failure of Mahaveeryar, in which he had invested between ₹3.5 crore and ₹4 crore, the accused assured him of a co-producer credit in Action Hero Biju 2, along with a share in overseas distribution profits. He further claimed that the accused later suppressed information regarding the transfer of the film’s title and relied on an outdated agreement to sell overseas rights to a Dubai-based firm for ₹5 crore, allegedly resulting in financial loss to him.

Earlier, the High Court had stayed the proceedings initiated against the accused. On November 24, the Court referred the dispute for mediation. However, when the case was later listed for a mediation status report, it was informed that the process had failed due to the non-participation of Nivin Pauly and Abrid Shine. Subsequently, the Court extended the interim stay following the mediation failure.

Meanwhile, the Judicial First Class Magistrate Court, Vaikom, directed its Junior Superintendent to initiate criminal prosecution against Shamnas for allegedly filing a false affidavit before the court in connection with the registration of the FIR against Nivin Pauly.
(With Live Law inputs)