Stopping a case always means the accused is proven innocent.

Only when the main witnesses had already testified before the stoppage does it count as an acquittal; otherwise it is a discharge, which is not the same as a finding of innocence.

Bharatiya Nagarik Suraksha Sanhita, 2023

Section 281

Power to stop proceedings in certain cases

In any summons-case instituted otherwise than upon complaint, a Magistrate of the first class or, with the previous sanction of the Chief Judicial Magistrate,§

any other Judicial Magistrate, may, for reasons to be recorded by him, stop the proceedings at any stage without pronouncing any judgment and where such stoppage of proceedings is made after the evidence of the principal witnesses has been recorded, pronounce a judgment of acquittal, and in any other case, release the accused, and such release shall have the effect of discharge.§

Why this exists

Courts handle huge numbers of small cases, and some drag on for years with weak or stalled evidence. This provision, carried over from the old Criminal Procedure Code, gives magistrates a housekeeping tool to close weak or stagnant minor cases early instead of forcing a full trial to its end, while still protecting the accused's right to either an acquittal or a discharge depending on how far the case had progressed.

Common misconceptions

Myth: Stopping a case always means the accused is proven innocent.
Fact: Only when the main witnesses had already testified before the stoppage does it count as an acquittal; otherwise it is a discharge, which is not the same as a finding of innocence.