404 Pagination issue for only one category

Completely mess, but this solved my issue

<?php
function be_custom_loop()
{
    $category = get_category(get_query_var('cat'));
    $cat_id = $category->cat_ID;
    $cat_name = $category->name;
    echo '<div class="home_title">' . $cat_name . '</div>';

    $paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
    $args = array(
        'cat' => $cat_id,
        'paged' => $paged
    );
    query_posts($args);
// The Loop
    while (have_posts()) : the_post();
        $post_thumb = str_replace(home_url(), "", get_post_thumb($post->ID));
        echo '<div class="cat-post"><div class="cat-post-img"><a href="' . get_the_permalink() . '"><img src="' . get_stylesheet_directory_uri() . '/img.php?w=300&h=200&a=t&src=" . $post_thumb . "" /></a></div><div class="cat-post-title"><a href="' . get_the_permalink() . '">' . get_the_title() . '</a></div></div>';
    endwhile;
        //wp_pagenavi();
  do_action('genesis_after_endwhile');
// Reset Query
    wp_reset_query();

}

add_action('genesis_loop', 'be_custom_loop');
remove_action('genesis_loop', 'genesis_do_loop');
genesis();