Political associates and fans of Imran, who made his debut in Pakistan politics in April this year, celebrated the occasion by distributing sweets in several cities.
They said the cricketer-turned-politician would now be able to devote to himself to his political mission at home after the legal battle which kept him away from the national scene.
''We have been flooded with congratulatory phone calls from all over Pakistan,'' said party officials in Lahore, where Imran's Tehreek-i-Insaff (movement for justice) is based.
The people will accord a ''hero's welcome'' when Imran returns home, they said.
Local press splashed the news along with photographs of Imran and his wife, Jemima, daughter of Franco-British tycoon Sir James Goldsmith, emerging triumphant from the London court.
Imran was sued by both Lamb and Botham over what they called an ''offensive personal attack'' on them in the India Today magazine. They accused Imran of calling them racist, uneducated and lacking class and upbringing.
Botham alone sued Imran over a May, 1994 report in Britain's Sun newspaper alleging that the Pakistan star had accused him of cheating at cricket by tampering with the ball.
''This case was important for all of us. Imran's victory has given a big boost to our image nationally and internationally,'' said Nazim F. Haji, member of the central executive committee of Imran's political movement.
''Imran is a fighter and he has got the courage of conviction,'' he said, adding that ''this is a first step ahead of Imran's expected achievements in political arena.''
Imran has vowed to battle what he calls the corrupt system and plunder of national wealth by leaders on both sides of the political divide in Pakistan.
However, his party is in an organisational phase and opinion is divided about its prospects in the political arena, currently dominated by Prime Minister Benazir Bhutto's Pakistan People's Party and the main opposition Pakistan Muslim League of former premier Nawaz Sharif.
A former team-mate of Imran's Haroon Rashid, said the balltampering issue was not important enough to take legal action over but said the outcome of the court case had given ''tremendous moral support'' to Pakistan cricketers.
Ball shining or rubbing is an old practice, he said, adding that Pakistani bowlers had a peculiar skill in using an old ball.
''The ICC (International Cricket Council) should seriously examine the ball-tampering controversy now and do something about it,'' he said.
Iqbal Qasim, a veteran of 50 test matches, said English cricketers would be careful in future and avoid ''creating problems as they do whenever Pakistan's team tours England.''
''They should learn a lesson now,'' he said.