The Kerala High Court has quashed the cheating case registered against Nivin Pauly over Action Hero Biju 2, after finding that the actor and producer P.S. Shamnas had settled their dispute. Justice P.V. Balakrishnan passed the order on October 26, allowing the petition Nivin filed in 2025.
What the court order says
The case was Crime No. 808/2025 of Thalayolaparambu Police Station in Kottayam, registered under Sections 406 and 420 read with Section 34 of the IPC. Nivin Pauly was the first accused. Shamnas, the proprietor of Indian Movie Makers, was the complainant.
Counsel for both sides told the court that the dispute had been settled, and that Shamnas had no remaining grievance and did not wish to pursue the case. Shamnas also filed an affidavit to that effect, dated September 30, 2026. The Public Prosecutor told the court the settlement was genuine and bona fide, and that the State had no objection.
The court held that the offences alleged were not serious in nature and did not have a serious impact on society. It added that no purpose would be served in continuing the prosecution, since the chances of a conviction were bleak. It then quashed the FIR against Nivin.
The other cases
Director Abrid Shine, named as the second accused in the same FIR, got the same relief. In a separate order passed the same day, Justice Balakrishnan quashed the case against him on the basis of the settlement.
The court also quashed the forgery case against Shamnas, as reported by LiveLaw, Bar and Bench and The News Minute. Palarivattom police registered that case on July 28, 2025, on Nivin's complaint, under IPC Sections 465 and 471.
What the dispute was about
Both court orders record only the settlement and the IPC sections. The money figures come from Shamnas's complaint, as reported by LiveLaw and other outlets. He claimed he invested Rs 1.9 crore in Action Hero Biju 2 after being promised a co-producer role and a share of overseas profits. He further claimed the overseas rights were then sold to a UAE firm, Home Screen Motion Pictures LLC, for Rs 5 crore without his knowledge.
The claims around Mahaveeryar do not line up across reports. One version says Shamnas was owed Rs 95 lakh from that film, while another says he had invested Rs 3.5 crore to Rs 4 crore in it. Nivin, in turn, alleged that Shamnas had forged his signature. None of these claims was tested at trial.
Where Action Hero Biju 2 stands
Nivin announced the sequel on February 4, 2024, eight years after Action Hero Biju, with Abrid Shine returning as director.
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In February 2026, Abrid said in an interview with Movie World Media, as reported by OTTplay on February 11, that the team had started the film but it got stalled due to certain technical reasons. He said he still hoped it would happen someday.
Meanwhile, Nivin has moved on to other work, including the LCU film Benz, where he plays the villain Walter, and NP 51 with Nashid Famy.
What we know and don't know
Known: The cheating case against Nivin was quashed on October 26 after a settlement the prosecution called genuine.
Known: The case against Abrid Shine was quashed in a separate order the same day.
Reported: The forgery case against Shamnas was also quashed.
Not known: The terms of the settlement, which are not in the order.
Not known: Who now holds the rights to Action Hero Biju 2.
Not known: Any new shoot date or restart. Neither Nivin nor Abrid has announced one.
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