APHC010479852025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3521] THURSDAY,THE SEVENTH DAY OF MAY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE DR JUSTICE Y. LAKSHMANA RAO CRIMINAL PETITION NO: 9580/2025 Between: 1. INDIA DIGITAL SCHOOLS TRUST, DOOR NO.40-26-22, MOHIDDIN STREET, CHANDRA MOULI PURAM, M.G. ROAD, VIJAYAWADA- 10, KRISHNA DISTRICT. 2. INDIAN DIGITAL SCHOOLS TRUST,, REP. BY ITS CHAIRMAN, SRI IMMANENI ESWARA RAO, DOOR NO.40-26-22, MOHIDDIN STREET, CHANDRA MOULI PURAM, M.G. ROAD, VIJAYAWADA- 10, KRISHNA DISTRICT. 3. SRI IMMANENI ESWARA RAO,, AGED ABOUT 61 YEARS. CHAIRMAN OF INDIAN DIGITAL SCHOOLS TRUST, R/O. PLOT NO.3, ROAD NO.4, LOTUS LAND MARK, VIJAYAWADA, KRISHNA DISTRICT. 4. INDIAN DIGITAL SCHOOLS TRUST,, REP. BY ITS MANAGING TRUSTEE/AUTHORISED SIGNATORY, SRI ARUMILLI RAKESH, CORPORATE OFFICE. DOOR NO.40-6/3-3, SRI NILAYAM, OPP. SIDDHARTHA PUBLIC SCHOOL, CO-OPERATIVE BANK COLONY, MOGALRAJPURAM, VIJAYAWADA-10, KRISHNA DISTRICT. 5. SRI ARUMILLI RAKESH,, S/O. VENKATESWARA RAO, AGED ABOUT 36 YEARS. MANAGING TRUSTEE OF INDIAN DIGITAL SCHOOLS TRUST, H.NO. 31-13-15/1, MACHAVARAM, VIJAYAWADA, KRISHNA DISTRICT. 6. INDIAN DIGITAL SCHOOLS TRUST,, REP. BY ITS MANAGING DIRECTOR, SRI MADIREDDY PHNAI KUMAR, S/O. SATYANARAYANA, DOOR NO.40-6/3-3, SRI NILAYAM, 0PP. 2 SIDDHARTHA PUBLIC SCHOOL, CO-OPERATIVE BANK COLONY, MOGALRAJPURAM, VIJAYAWADA-10, KRISHNA DISTRICT. 7. SRI MADIREDDY PHNAI KUMAR,, S/O. SATYANARAYANA, AGED ABOUT 44 YEAR'S, MANAGING DIRECTOR OF INDIAN DIGITAL SCHOOLS TRUST, R/O. PLOT NO.7, SECTOR-I, ROAD NO.8, LOTUS LAND MARK,VIJAYAWADA, KRISHNA DISTRICT. 8. INDIAN DIGITAL SCHOOLS TRUST,, REP. BY ITS CHIEF EXECUTIVE OFFICER, SRI ANIL AMBATI, AGED ABOUT 37 YEARS. DOOR NO.40-6/3-3, SRI NILAYAM, 0PP. SIDDHARTHA PUBLIC SCHOOL, CO-OPERATIVE BANK COLONY, MOGALRAJPURAM, VIJAYAWADA-10, KRISHNA DISTRICT. 9. SRI ANIL AMBATI,, CHIEF EXECUTIVE OFFICER, OF INDIAN DIGITAL SCHOOLS TRUST, AGED ABOUT 43 YEARS, R/O. FLATNO.404, CASTLE HILL FORT HOUSE, MEHADIPATNAM, WATER BANKLINE CHOWRASTA, HYDERABAD -500057. 10. INDIAN DIGITAL SCHOOLS TRUST,, REP. BY ITS DIRECTOR, SRI CHALLURI CHAITANYA KISHORE, DOOR NO. 40-6/3-3, SRI NILAYAM, OPP. SIDDHARTHA PUBLIC SCHOOL, CO-OPERATIVE BANK COLONY, MOGALRAJPURAM, VIJAYAWADA-10, KRISHNA DISTRICT. 11. SRI CHALLURI CHAITANYA KISHORE,, S/O. RAJENDRA, AGED ABOUT 33 YEARS, DIRECTOR OF INDIAN DIGITAL SCHOOLS TRUST, R/O. PLOT NO.8, SECTOR.L, ROAD NO.8, LOTUS LAND MARK, VIJAYAWADA, KRISHNA DISTRICT. ...PETITIONER/ACCUSED(S) AND 1. M/S SRI VENKATA RAMA BOOK DEPOT, REP. BY ITS PROPRIETORNERALLA VENKATA RAMANA S/O. RADHA RAO, AGED ABOUT 51 YEARS, BUSINESS, DOOR NO. 6-4-3 L/A/24/2, ARUNDELPET, GUNTUR, GUNTUR DISTRICT. 2. THE STATE OF ANDHRA PRADESH, REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF A.P., AMARAVATHI. ...RESPONDENT/COMPLAINANT(S): 3 Counsel for the Petitioner/accused(S): DR D VENKATA RAMANA REDDY Counsel for the Respondent/complainant(S): 1. SRINIVASA RAO MODUKURI 2. PUBLIC PROSECUTOR The Court made the following: ORDER: The Criminal Petition has been filed under Section 482 of the Code of Criminal Procedure, 1973 (for brevity ‘the Cr.P.C.,’)/Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for brevity ‘the BNSS’) seeking to quash the proceedings against the Petitioners/Accused Nos.1 to 11 in C.C.No.5818 of 2022 on the file of the learned IV Additional Judicial First Class Magistrate, Guntur. 2. Notice to Respondent No.2 was sent, and a memo to that effect has been filed. There is no representation for Respondent No.2. Hence, a learned legal aid counsel is appointed to argue the case on behalf of Respondent No.2, for the ends of justice for not causing any prejudice to Respondent No.2. Hence, Mr.K.Ranga Srinivas, learned counsel, is appointed as learned legal aid counsel for Respondent No.2 in this case. The Secretary, High Court Legal Services Committee, is directed to issue necessary proceedings in this regard. 3. Sri Venkata Ramana Reddy, the learned counsel for the Petitioners, submits that the complaint lacks privity of contract, statutory compliance, and 4 specific allegations, as Petitioner No.3 retired earlier, the trust ceased activities in 2016-17, and no legally enforceable debt is shown, making the proceedings unsustainable. 4. Per contra, Mr.A.Sai Rohith, learned Assistant Public Prosecutor, submits that the complaint satisfies Section 138 of the Negotiable Instruments Act, 1881 (for brevity, ‘the N.I Act’) requirements, statutory notice was duly served, issues of privity and trust management are trial matters, and prima facie evidence of debt exists, hence the proceedings cannot be quashed at the threshold. 5. Mr.K.Ranga Srinivas, learned legal aid counsel for Respondent No.2, argued on the same lines as the learned Assistant Public Prosecutor, opposing the quash petition. 6. Heard learned counsel for Petitioners, learned Assistant Public Prosecutor and learned legal aid counsel for Respondent No.2. Perused the record. 7. Thoughtful consideration is bestowed on the arguments advanced by the learned Counsel for both sides. I have perused the entire record. 8. In the light of the case of the prosecution and the contentions of the learned Counsel for both the sides, now the point for consideration is: “Whether the proceedings in C.C.No.5818 of 2022 on the file of the learned IV Additional Judicial First Class Magistrate, Guntur are liable to be quashed in exercise of the inherent powers of the High Court under Section 482 of „the Cr.P.C.,‟/Section 528 of „the BNSS‟?” 5 9. The Hon’ble Apex Court in HDFC Bank Limited v. State of Maharashtra1 at paragraph No.23 (iv), it is held that every person connected with the Company shall not fall within the ambit of the provision. It is only those persons who were in charge of and responsible for the conduct of business of the company at the time of commission of an offence, who will be liable for criminal action. In the instant case, the alleged or disputed cheques were issued by Respondent No.7. Respondent No.6 is the Indian Digital Schools Trust, and Respondent No.7 is its Managing Director. 10. Having regard to the facts and circumstances of the case, and the law laid down in HDFC Bank Limited supra, the proceedings in C.C.No.5818 of 2022 on the file of the learned IV Additional Judicial First Class Magistrate, Guntur, in respect of Petitioner No.2 (Chairman), Petitioner No.3 (in his personal capacity as Chairman), Petitioner No.4 (Authorized Signatory), Petitioner No.5 (Managing Trustee of the Trust), Petitioner No.8 (Chief Executive Officer of the Trust), Petitioner No.9 (in his capacity as Chief Executive Officer of the Trust), Petitioner No.10 (Director of the Trust), and Petitioner No.11 (in his capacity as Director of the Trust), are hereby quashed. 11. In the result, the Criminal Petition is partly allowed. As a sequel, Miscellaneous petitions, if any pending, shall stand closed. _________________________ DR. Y. LAKSHMANA RAO, J Date: 07.05.2026 PRA 1 2025 INSC 759 6 292 THE HONOURABLE DR JUSTICE Y. LAKSHMANA RAO CRIMINAL PETITION No.9580 of 2025 Date: 07.05.2026 PRA