Balor is the leader of the Paladins in Two Worlds. He does not appear until later in the game, specifically after Gandohar steals the Relic
and creates the Great Pentagram in the sky. Balor informs the Hero that he must destroy the Great Pentagram to gain access to Oswaroth. He will also appear after if the Hero chooses to side with Gandohar (to use Kira to revive Aziraal). If you do so, Balor will appear with the rest of the Paladins and of course be quite upset with the Hero, telling him "may your soul burn in the netherworld."