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Justice S Manu determined that the charges against Menon were not sustainable based on the allegations presented.
The director allegedly borrowed Rs 8 crore from Sreevalsam Group for producing a film.
Manju Warrier alleged that she was threatened and defamed by the Odiyan director at many occasions.
The Thrissur East Police Station had filed a case against the director Sreekumar Menon after Manju Warrier filed a complaint against him with Kerala Police Chief Loknath Behera.
The grounds for registering the case against Menon include outraging the modesty of women, stalking, and indecent representation of women via social media.
Sreekumar also clarified that it was through media reports that he came to know about the complaint filed by Manju Warrier and that he would co-operate by every means in the case.