The verdict ends the ordeal of the parents who were found guilty by a CBI court in the sensational double murder case.
Pronouncing the verdict in a packed courtroom, the bench said that it is a fit case where the benefit of the doubt can be given to the appellants and set aside the judgement of the CBI court convicting the Talwars.
As per reports, the court is likely to re-evaluate the testimony of key witnesses after the defence had accused the prosecution of tutoring them. But, to the surprise of the police, his body was found another day on the terrace of the building in a locked room.
Initially, the UP police had suspected Talwars' servant Hemraj, who was missing after the murder, as the murderer.
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Reacting to the verdict, the CBI said it would study the high court order and decide the future course of action.
"The couple was very happy.they said that justice had been done to them finally, " said an official of the Dasna jail in Ghaziabad, where the couple were now lodged.
As preliminary investigations revealed that both murders were done with surgical precision, an insider was suspected of being involved in the killings.
"The High court observed that they have been punished wrongly".
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It was then that the police began suspecting the parents, Rajesh and Nupur, after they allegedly had found Hemraj and Arushi in an "objectionable" position.
At a point in the film, Irrfan's character Ashwin, the reluctant CBI officer who is handed the case, screams in frustration: Crime scene ko machhli bazaar banake rakkha hai! They had challenged a CBI court order which had convicted them for the murder of their daughter Aarushi and domestic help Hemraj in 2008. Rajesh Talwar was similarly arrested, then released, then re-arrested. "They have really suffered".
Rajesh and Nupur, who are serving life sentence at Ghaziabad's Dasna jail, had moved the High Court against their conviction by the CBI court. They were also convicted for destruction of evidence.
The Talwars, who were a well-to-do dentists with a happy life with good friends and family have lost everything now and for the past nine years focus has remained on the Talwars due to their cruelty.
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The CBI court, presided by Additional Sessions Judge Shyam Lal, had, however, rejected the CBI's plea for death penalty in 2014.