- 1 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 6535 OF 2020 BETWEEN: SRI. PRABHAKAR S, S/O LATE SATYANARAYANA, AGE ABOUT 48 YEARS, R/AT NO. 4078, 18TH MAIN, 30TH CROSS, SRI. RAGHAVENDRA NILAYA, BSK 2ND STAGE, BANGALORE - 560 070. …PETITIONER (BY SMT. V. GANGABAI, ADVOCATE FOR SRI. S. VIVEKANANDA, ADVOCATE) AND: 1. STATE OF KARNATAKA, REPRESENTED BY JAYANAGAR POLICE STATION, BANGALORE - 560 011. 2. SRI. BALAKRISHNA H.N, AGE ABOUT 40 YEARS, SON OF M.V. NARASIMHA MURTHY, RESIDING AT NO. 16-172/2, AVINASH MOSAIC ROAD, KULASHEKARA, MANGALORE - 560 004. …RESPONDENTS (BY SMT. ASMA KOUSER, ADDL. SPP FOR R1; SRI. K. RAMESH, ADVOCATE FOR R2) Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO a. QUASH THE ORDER DATED 11.09.2017, PASSED BY THE HONBLE II ACMM, BENGALURU IN C.C.NO.24400/2017 TAKING COGNIZANCE OF THE OFFENCE AGAINST THE PETITIONER HEREIN. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ ORAL ORDER This petition is preferred under Section 482 of Cr.P.C with the following prayer:- a) quash the Order dated 11.09.2017, passed by Hon'ble II ACMM, Bengaluru in C.C.No.24400/2017, taking cognizance of the offences against the Petitioner herein; b) quash the complaint and entire proceedings in C.C.No.24400/2017 pending against the petitioner before the Hon'ble II Additional Chief Metropolitan Magistrate, Bengaluru for the offences punishable under Sections 420,465,120-B r/w Section 34 of the Indian Penal Code, 1860, and at Annexure-A. c) Pass such other or further orders as this Hon'ble Court may deem fit and necessary, in the facts and - 3 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 circumnutates of the above case, to meet the ends of justice. 2. A Private complaint was filed under Section 200 of Cr.P.C., alleging that accused Nos.1 to 3, Directors of a company formed in the name and style as 'Shaambala Value Systems Pvt. Ltd'., induced the complainant to become the Director of the said company by investing Rs.37,33,883/-. But, the accused failed to induct him as a Director and with a common intention, criminally conspired with themselves to defuse the company amount and invested huge amount in other companies to make personal gain and cause financial loss to the complainant and thereby cheated him etc., 3. The complaint was filed alleging offences punishable under Sections 120(B), 420, 463, 464, 465, r/w Section 34 of IPC. The learned Magistrate referred the complaint to police for investigation under Section 156(3) of Cr.P.C. On conducting investigation, the police filed a B-report stating that there is an inter se dispute between the Directors of the company and the matter has to be adjudicated by the company law Board. Complainant/respondent No.2 filed protest petition to the B - 4 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 report. Learned Magistrate proceeded to register a case against the petitioners. 4. A perusal of the order dated 11.09.2017 passed by the learned Magistrate shows that the B-report submitted by the police was not rejected, on the otherhand, he proceeded to register a case against the accused without rejecting the B report. Petitioner is shown as accused No.1 in the complaint. 5. Aggrieved by the impugned order passed by the learned Magistrate, accused No.3 preferred Criminal Petition No.115/2018 before this Court and this Court was pleased to allow the said petition, quashing the impugned order passed in C.C. No.24400/2017 on the file of II Additional Chief Metropolitan Magistrate, Bangalore, insofar as the said petitioner is concerned. 6. This Court while allowing the petition filed by accused No.3 has taken into consideration that taking of cognizance of the offence without rejecting the 'B' report at the first instance and recording of sworn statement is impermissible as held in Dr. Ravikumar -vs-Mrs. K.M.C. Vasantha and Another reported in ILR 2018 KAR 1725. Further observed, the - 5 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 allegations that the accused has forged the signature of the complainant in the year 2007, but private complaint was filed in the year 2012, only when the case was registered against the complainant for the offence punishable under Section 138 of the N.I. Act and therefore, the complaint was filed with an ulterior motive to take vengeance with revengeful intent. 7. The proceedings against accused No.3 is already quashed by this Court in Criminal Petition No.115/2018 disposed on 01.02.2023. The allegations against the present petitioner are same. The observations made therein holds good for the petitioner as well and therefore, the petition deserves to be allowed. Accordingly, the following:- ORDER i. Petition is allowed. ii. The order dated 11.09.2017 passed by the II A.C.M.M, Bangalore in C.C No.24400/2017 and the entire proceedings thereon as against the petitioner is quashed. - 6 - NC: 2025:KHC:13312 CRL.P No. 6535 of 2020 iii. I.A No.1/2020 is disposed of. Sd/- (MOHAMMAD NAWAZ) JUDGE VS List No.: 1 Sl No.: 16 CT: BHK