We faced a legal case that was thankfully dismissed. The court even issued a formal order. But now, when we applied for a passport, the police are refusing verification, demanding a copy of the court order. What should we do next?

You should provide a copy of the court order dismissing the case to the police. Since the order is a public document, they should accept it as proof that the case is closed and proceed with your passport verification. If they continue to refuse, you can file a complaint with the higher authorities, like the Superintendent of Police or the Passport Officer.