Kochi: The Kerala High Court has stayed proceedings in a cheating case filed against actor Nivin Pauly on Tuesday.

The court also halted further action in the case. The case was registered on the complaint of producer PS Shamnas in connection with a dispute over the distribution rights of Action Hero Biju 2. Director Abrid Shine and Nivin Pauly were both named as accused.

According to the complaint, after entering into an agreement to produce the sequel, the film’s copyright was allegedly sold to another party without the producer’s knowledge. The case was registered by Thalayolaparambu police following a court directive.

Shamnas and Nivin Pauly had earlier co-produced the film Mahaveeryar, directed by Abrid Shine. The complaint alleges that after Mahaveeryar failed commercially, the accused agreed to include Shamnas as a production partner for the next film.

However, Shamnas claimed that the copyright of the film, which had been registered under his name with the Film Chamber, was sold to a foreign company without his consent, an act he described as criminal breach of trust and cheating.