Additional District and Sessions Judge Amjad Ali Shah adjourned hearing till September 20.
He stated that all allegations levelled against him were baseless as he never harassed Meesha, in response to questions put by the defence counsel.
He said the allegations were made for monetary benefits and to gain popularity.
Meesha Shafi files Rs2b lawsuit against Ali Zafar
The court expressed serious annoyance over interference by Zafar's counsel in the proceedings.
The court was then adjourned till September 20.
It was also directed to the defence counsel to continue cross-examination in the next hearing.
Zafar had filed Rs1 billion defamation case under the Defamation Ordinance 2002, after being accused of harassment.
He has denied all sexual harassment allegations against him in a statement.
In April 2018, Shafi accused Zafar of harassing her on more than once.
The court also conducted proceedings on a Rs2 billion damages suit, filed by Shafi against the actor for making false allegations against her on the media.
Zafar was given a copy of the suit on the directions of the court.
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