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The Mumbai police on Thursday morning arrested film director K C Bokadia.
He was released on bail of Rs 20,000 in the evening, police sources said.
Bokadia had issued three cheques worth Rs 7,55,000 to on Baldev Shahani, who is a film financer.
In April 2004, after the cheques bounced, Shahani approached the metropolitan court.
The court issued summons against Bokadia thrice, but he did not respond.
"The police has not registered any complaint against him and the orders have come from court. We have just acted on the warrant issued by the court," Deputy Commissioner of Police Amitabh Gupta told rediff.com
Bokadia is the producer of films like Aaj Ka Arjun, Lal Badshah and Police Aur Mujrim.