R. Bhagavandoss Bajaj, proprietor of Sheela Enterprises and Associates, had filed a case against the two actors after two cheques allegedly given by them were not honoured by the banks.
Bajaj approached a metropolitan magistrate's court in April 2006, saying Ajay Singh Deol, on behalf of his company Sunny Sounds, had borrowed Rs.1 million to complete the Hindi film "Big Brother".
When two cheques for Rs.500,000 each issued by Deol were presented for payment, the banks allegedly returned them unpaid, as the account-holder had made a stop-payment request.
Bajaj sent a legal notice on June 6 this year to the directors of the company, which included actors Dharmendra and Sunny. Sunny Deol is the film name of Ajay Singh Deol.
On Thursday, Metropolitan Magistrate C. Thirumagal dismissed the case "as withdrawn", after the complainant appeared before the court in September and sought permission to take back his complaint.