
Magistrate Mahyuddin Mohamad Som made the decision after the prosecution failed at its third attempt to get Khalid to testify.
Sanjeevan claimed trial last year to the charge under Section 500 of the Penal Code for criminal defamation.
He was accused of defaming the two men on his Facebook last year.
Sanjeevan was represented by Preakas Sampunathan while deputy public prosecutor Haffiza Sauni appeared for the prosecution.
In an immediate response, Sanjeevan said he felt vindicated by the court but his legal battle was not over yet.
“I still have another extortion case to go,” he said.
Sanjeevan said he had been freed on various charges of cheating, blackmailing, hiring foreign workers illegally and insulting Khalid since 2016.