District and Session Judge Sunita Kumari Sharma, in her judgement delivered to the accused through video conferencing, ordered acquittal of Hawara as the prosecution failed to probe the case.
Hawara was booked under various sections of IPC, including murder and Arms Act, on December 21, 1992.
The prosecution contended that Hawara and his accomplices had fired on a police party near Gurdwara Garhi Sahib in Chamkaur Sahib from the fields where they were hiding.
Sunil Kumar later succumbed to the injuries and died in hospital.
Police later claimed to have recovered ammunition from the fields.
Hawara is presently lodged in Tihar Jail of Delhi.