Mumbai, July 25 :     Shiv Sena chief Bal Thackeray today surrendered before the police and drove over to a city court, but walked out a free man after the magistrate threw out the Maharashtra government case because it was too old to try. Wishing to end the 'agonising drama and the fear among the people', Thackeray went over to to the metropolitan magistrate's court in Bhoiwada around 11 am. On the way, he stopped at the Mayor's residence, where the police made a token arrest. The euphoria of the Congress-led state government was, however, shortlived as additional chief metropolitan magistrate B.P. Kamble cleared the Sena chief of the charge of inciting riots in 1993. The magistrate said he could not take cognizance of the case because it was too old and, therefore, 'barred by time' under law. 'I am closing the case,' Kamble said, dismissing the state's charge that Thackeray had ignited violence through inflamatory editorials in Saamna, the party's mouthpiece, in 1992-93. Chief minister Vilasrao Deshmukh okayed Thackeray's arrest early this morning after a night-long meeting with his deputy Chhagan Bhujbal and top officials. Though reluctant intially to order the arrest for fear of violence and a court censure, sources said Deshmukh's hand was virtually forced by Bhujbal who was waging a virtually lone battle against his one-time mentor. Government counsel P.R. Vakil argued that the three-year time limit to file a chargesheet in a criminal case should be waived as the government had ordered Thackeray's prosecution. He said the police had completed its investigation and would soon file a chargesheet. The court rejected the argument. Thackeray's lawyers countered that the police had failed to make out a case against their client and pointed out that Thackery himself had turned himself over to the police at the Mayor's residence. The court also cleared Union minister Suresh Prabhu and Saamna's executive editor Subhash Desai, against whom similar charges had been levelled. The government said it would appeal against the verdict. After a week's uncertainty, the country's financial capital finally heaved a sigh of relief, but not Thackeray had issued another veiled warning before leaving home for court. 'I am ready to face the law. It's good if I get bail, but if it is going to be a jail yatra, it will be difficult,' he told reporters at his Bandra residence. Dressed in a starched white kurta and smoking his trademark cigar, the 74-year-old cartoonist-turned-politician, appeared unflappable as he reached the courthouse, flanked by son Uddhav and nephew Raj Thackery. As his words spread, the city shut down in panic. Shops and markets downed shutters and vehicles disappeared from the usually bustling streets. Several schools called up parents, asking them to take their children home. Curiously, phones - both MTNL and mobile services - went dead in many business districts, including Nariman Point, around the same time. The Sena and BJP accused the government of jamming the lines to prevent the spread of the news of Thackeray's arrest. The authorities blamed the disruption on a technical snag.