The Patna high court on Wednesday quashed a first information report registered against actor Sunny Deol in which he was charged with failure to return Rs 13 lakh he had taken against distribution rights for a movie.
"A compromise was reached between the two parties," officials said.
Deol's lawyer Amit Srivastava said Deol had paid Rs 23 lakh to B L Films for an out-of-court settlement.
The FIR was registered against Deol on the basis of a complaint lodged by Hajipur-based film distributors, BL Films, in 2003.
It was alleged in the police complaint that Deol and his film production team had received Rs 13 lakh from B L Films for giving it the marketing rights of a Hindi film, The Gandhi, for north Bihar and Nepal areas.
The petition was filed in the name of Ajay Singh Deol alias Sunny Deol.
In his petition, Deol claimed that the film producer was someone else.
Deol had also sought anticipatory bail in the case.
However, after the FIR was quashed, he did not press for bail.
