Kochi, Aug 12 : The Kerala High Court on Tuesday stayed further proceedings in a criminal case against Malayalam actor Nivin Pauly and filmmaker Abrid Shine over an alleged Rs 1.9 crore fraud, holding that the dispute appeared to be civil in nature.

Justice V.G. Arun issued the interim order while hearing petitions filed by both accused.

The court noted merit in the petitioners' argument, citing an earlier police report that concluded the matter was civil and advised the complainant to seek remedies through civil proceedings.

The judge observed that the magistrate had erred in forwarding the complaint for investigation under Section 175(3) of the Criminal Procedure Code without a proper inquiry.

The case, registered at Thalayolaprambu Police Station in Kottayam, was based on a complaint by P.S. Shamnas, proprietor of Indian Movie Makers.

Shamnas alleged that after investing Rs 3.5 to 4 crore in the 2022 film "Mahaveeryar", which failed at the box office, he was promised a co-producer role in "Action Hero Biju 2" and a share of the profits from its overseas rights.

He claimed the accused concealed details of the film's title transfer and used an outdated agreement to sell overseas rights to a Dubai-based company for Rs 5 crore, causing him financial loss.

The First Information Report had booked the accused under IPC Sections 406 (criminal breach of trust) and 420 (cheating), read with Section 34 (common intention).

Counsel for Pauly and Shine argued that the allegations did not meet the ingredients for cheating or breach of trust and relied on the Supreme Court ruling, which cautioned against mechanically forwarding complaints to the police.

The petitioners also accused Shamnas of forging Pauly's signature in documents submitted to the Kerala Film Chamber of Commerce, a matter for which a separate complaint has been lodged.

The High Court, after staying the proceedings in the case, posted the matter for further hearing on September 11.

/IANS