Nadeem Azam (38), of In-Time watch repairs in Burnley Market Hall, had been accused of groping the teenager's breast while they were alone in the market's sluice room.

The teenager reported the alleged incident to a colleague, claiming the defendant held her in a tight clench before making heavy breathing noises.

Burnley magistrates heard from four witnesses, including the alleged victim, her colleague, Burnley Market senior supervisor Mr Alan Rogers and DC Steven Charnley, of Burnley CID, as well as Azam's three character witnesses.

The teenager told the court Azam had asked her for her mobile number, but she refused. When she later went to the sluice room to empty a bucket, she told magistrates the defendant was leaving the room before he turned to flick water at her. The woman then claimed he grabbed her.

CCTV footage showed the teenager entering the room at 9-41 a.m. and leaving two minutes later, 12 seconds after the defendant. Mr Dylan Bradshaw (defending) said: "This incident did not happen, did it? It is just not physically possible.

"These are very serious allegations which could destroy Mr Azam's reputation. But when you look at the evidence and decipher how long they were in the room for, the items the two of them were holding and taking into consideration the geography of the room, it is not possible for this to happen."

Character witnesses for Mr Azam, who has a wife and three children, described him as friendly, helpful, generous and caring.

After the trial, the stallholder said: "I am happy it's all over. The last few months have been horrible and it has had an impact on my family."