Justice Abhay Thipsay quashed the complaint against Abigail Rosa, secretary of the event management firm, after observing that she was not the one who scripted the alleged obscene act.
The court, however, remarked that the police should prosecute the actors and the director of the fashion show.
Akshay Kumar had sparked a controversy during the fashion week in March 2009 when his wife Twinkle unbuttoned his jeans on the ramp to promote a popular denim brand.
A complaint was filed by a social worker with the Vakola Police Station on March 30, 2009.
Abigail had sought discharge from the case claiming that she has been falsely dragged into it. According to Abigail, she was not connected with the show except for applying for a no objection certificate for the event from the police station and was discharging a purely secretarial function.
The FIR had named her as the organiser.
Assistant Public Prosecutor Rajshree Gadhvi argued since Abigail had procured the NOC and had agreed to conditions laid down by the police, it was her duty to see to it that it was complied.
Abigail was arrested and released on bail on August 25, 2009, for "inciting and abetting the actor's crime of obscenity."