Why Did Kerala HC Stay Proceedings Against Nivin Pauly and Shine?

Synopsis
Key Takeaways
- Kerala High Court temporarily halted criminal proceedings.
- Dispute deemed civil in nature.
- P.S. Shamnas filed the complaint.
- Allegations involve investments and profit sharing.
- Next hearing scheduled for September 11.
Kochi, Aug 12 (NationPress) The Kerala High Court has temporarily halted further legal actions in a criminal case involving Malayalam actor Nivin Pauly and filmmaker Abrid Shine concerning an alleged fraud amounting to Rs 1.9 crore, determining that the dispute seems to be of a civil nature.
Justice V.G. Arun issued this interim ruling during the hearing of petitions submitted by both defendants.
The court acknowledged the validity of the petitioners’ claims, citing a prior police report that deemed the issue civil and recommended the complainant pursue remedies through civil litigation.
The judge commented that the magistrate mistakenly proceeded with the complaint for investigation under Section 175(3) of the Criminal Procedure Code without conducting a thorough inquiry.
This case, filed at the Thalayolaprambu Police Station in Kottayam, originated from a complaint by P.S. Shamnas, the owner of Indian Movie Makers.
Shamnas claimed that after investing Rs 3.5 to 4 crore in the 2022 film "Mahaveeryar", which underperformed at the box office, he was promised a co-producer role in "Action Hero Biju 2" along with a profit share from its overseas rights.
He accused the defendants of hiding information regarding the film’s title transfer and utilizing an outdated contract to sell overseas rights to a Dubai-based firm for Rs 5 crore, resulting in his financial loss.
The First Information Report charged the defendants under IPC Sections 406 (criminal breach of trust) and 420 (cheating), in conjunction with Section 34 (common intention).
The legal representatives for Pauly and Shine contended that the allegations did not fulfill the criteria for cheating or breach of trust, referencing a ruling from the Supreme Court that warned against automatically forwarding complaints to the police.
Additionally, the petitioners claimed that Shamnas forged Pauly’s signature on documents submitted to the Kerala Film Chamber of Commerce, a matter for which a separate complaint has been filed.
After suspending the case proceedings, the High Court scheduled the next hearing for September 11.