- 1 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 3130 OF 2023 (482(Cr.PC) / 528(BNSS)) C/W CRIMINAL PETITION NO. 7192 OF 2022 (482(Cr.PC) / 528(BNSS)) CRIMINAL PETITION NO. 3265 OF 2023 (482(Cr.PC) / 528(BNSS)) IN CRL.P No. 3130/2023 BETWEEN: V. VIJAY KUMAR, S/O VEERACHAMY, AGED ABOUT 42 YEARS, THE DIRECTOR OF M/S. VAHE PROJECTS PVT. LTD., SY. NO. 29/1, NO.2, 3RD CROSS, NARAYANAPPA LAYOUT, BEHIND VARTUR HIGH SCHOOL, VARTHUR, BENGALURU - 560 087. ALSO PRESENTLY RESIDING AT: RESIDENT OF FLAT NO.18071, T18A, PRESTIGE BELLA VISTA IYYAPANTHANGAL, CHENNAI - 600 056. …PETITIONER (BY SRI. T. SWAROOP, ADVOCATE) Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 AND: SMT. BHARATHI C, W/O M. RAMAKRISHNA REDDY, AGED ABOUT 51 YEARS, RESIDING AT NO.667, "SRI KUTEERA", 22ND 'A' MAIN, H.S.R LAYOUT, SECTOR-II, BANGALORE - 560 102. …RESPONDENT (BY SRI. HARISH H.V, ADVOCATE) THIS CRL.P IS FILED U/S 482 OF CR.PC PRAYING TO QUASH THE ENTIRE PROCEEDINGS AND COMPLAINT IN C.C.NO.32695/2021 REGISTERED FOR THE OFFENCE P/U/S 138 OF N.I. ACT, PENDING ON THE FILE OF THE HONBLE XIX ACMM, BANGALORE, IN SO FAR AS THE PETITIONER/ ACCUSED NO.6 IS CONCERNED. IN CRL.P NO. 7192/2022 BETWEEN: SRI. VENKATARAMAN R, S/O RAMASAMY, AGED ABOUT 72 YEARS, R/AT NO.53/C2, 1ST AVENUE, INDRANAGAR, ADYAR, CHENNAI - 600 020. ...PETITIONER (BY SRI. G.M. GADILINGAPPA, ADVOCATE) AND: SMT. C. BHARATHI, W/O M.RAMAKRISHNA REDDY, AGED 52 YEARS, - 3 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 R/AT 667, "SRI KUTEERA", 22ND 'A' MAIN ROAD, HSR LAYOUT, SECTOR-II BENGALURU - 560 102. ...RESPONDENT (BY SRI. HARISH H.V, ADVOCATE) THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE ENTIRE PROCEEDINGS AGAINST THIS PETITIONER IN C.C.NO.32695/2021 (IN PCR.NO.8601/2021) PENDING ON THE FILE OF THE HONBLE XIX A.C.M.M., AT BENGALURU FOR THE ALLEGED OFFENCE P/U/S 138 OF THE N.I ACT. IN CRL.P NO. 3265/2023 BETWEEN: V. VIJAY KUMAR, S/O VEERACHAMY, AGED ABOUT 42 YEARS, AT PRESENT RESIDENT OF FLAT NO.18071, T18A, PRESTIGE BELLA VISTA, IYYAPANTHANGAL, CHENNAI - 600 056. ...PETITIONER (BY SRI. T. SWAROOP T, ADVOCATE) AND: M. RAMAKRISHNA REDDY, S/O LATE B. MUNISWAMY REDDY, AGED ABOUT 61 YEARS, RESIDING AT NO. 667, "SRI KUTEERA", 22ND A MAIN, H.S.R LAYOUT, SECTOR - II, BANGALORE - 560 102. ...RESPONDENT - 4 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 (BY SRI. HARISH H.V, ADVOCATE) THIS CRL.P FILED U/S 482 OF CR.PC PRAYING TO QUASH THE COMPLAINT IN C.C.NO.32687/2021 REGISTERED FOR THE OFFENCES U/S 138 OF NEGOTIABLE INSTRUMENTS ACT PENDING ON THE FILE OF THE HONBLE XIX ACMM, BANGALORE, IN SO FAR AS THE PETITIONER/ ACCUSED NO.6 IS CONCERNED. THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ ORAL ORDER Crl.P.No.3130/2023 and Crl.P.No.7192/2022 are preferred by accused Nos.6 and 5 respectively, seeking to quash the entire proceedings and complaint in C.C.No.32695/2021 registered for the offence Punishable under Section 138 of the NI Act, pending on the file of Court of XIX ACMM, Bengaluru. 2. Crl.P.No.3265/2023 is preferred by accused No.6 to quash the entire proceedings and complaint in C.C.No.32687/2021 registered for offences Punishable - 5 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 under Section 138 of the NI Act, pending on the file of the Court of XIX ACMM, Bengaluru. 3. Heard both sides and perused the material on record. 4. C.C.No.32695/2021 arises out of PCR.No.8601/2021 wherein, the complaint is filed by one Smt.Bharathi.C. against M/S. Vahe Projects Private Limited/accused No.1 and it’s directors, accused Nos.2 to 6. 5. It is alleged in the complaint that, accused No.1/company is doing business of development and sale of properties in the name and style of M/s. Vahe Projects Pvt. Ltd., which is a registered company, incorporated under the Companies Act. Accused No.2 is the director/authorized person of accused No.1, and is in charge of day to day affairs of the company/accused No.1 and accused Nos.3 to 6 are also the directors of accused No.1, in charge of day to day affairs of the company and - 6 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 responsible for its transactions, involved in the said business/sale transactions of the complainant. Accused Nos.2 to 6 represented that accused No.1 is the GPA holder of the original land owner of certain properties and represented to the complainant that they have power to develop and alienate the properties and accordingly, entered into a joint development agreement dated 02.11.2012 and GPA dated 02.11.2012 and developed the said property and constructed residential flats including flat bearing No.7F in A-block and 5M in B-block in the apartment building known as Vahe Imperial Gardens. The accused entered into sale agreement dated 07.01.2015, with respect to the above said residential flats, agreeing to sell infavour of the complainant for a total sale consideration of Rs.28,50,000/- in respect of apartment bearing No.7F and Rs.21,25,000/- in respect of apartment No.5M respectively. 6. It is further averred, a sum of Rs.28.00 Lakhs and Rs.21.00 Lakshs were paid through RTGS to the - 7 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 account of the company and the complainant was always ready and willing to pay the balance sale consideration. As the accused did not come forward to execute the sale deed, pursuant to the above said sale agreements, complainant issued a legal notice, calling upon the accused to execute the sale deeds and inspite of receipt of notice, accused did not come forward to execute the sale deeds. The complainant later came to know that the accused have sold the said flats in favour of others and therefore, memorandum of understanding was executed in respect of the two flats wherein, the accused undertook to rectify the mistake and execute the sale deeds in favour of the complainant after canceling the earlier sale deeds. It is further stated that, the accused undertook and agreed to refund double the advance sale consideration amount paid under the sale agreements with interest and damages by selling other properties within two months from the date of the MOUs i.e., from 13.11.2019 and with that assurance given by the accused, complainant entered into the said MOUs. - 8 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 However, inspite of entering into the said MOUs and undertaking given, the accused did not come forward to execute the sale deeds, and not refunded the amount as assured. On persistent demand by the complainant, the accused issued a post dated cheque bearing No.015892 dated 15.02.2021 drawn on Axis Bank Ltd., Belandur Branch, Bengaluru for Rs.98.00 Lakhs. 7. Dishonour of the above mentioned cheque, culminated in filing of the complaint and initiation of proceedings in C.C.No.32695/2021 against accused No.1/company and its directors namely accused Nos.2 to 6 respectively. 8. The learned counsel appearing for the petitioner/accused No.6 in Crl.P.No.3130/2023 and Crl.P.No.3265/2023 would contend that the said petitioner though named as a director in the complaint, however, the entire documents of accused No.1 shows that he is not at all a director, on the other hand he is only a share holder of the company. He has therefore - 9 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 contended that the proceedings initiated against the petitioner is an abuse of process of the Court, since, except making a bald allegation that the said accused is in charge of the affairs of the company, there are no materials placed on record to substantiate the same. 9. Learned counsel appearing for the petitioner/accused No.5 in Crl.P.No.7192/2022 would contend that the said petitioner is not at all connected to the accused No.1/company and the father's name also differs and he is arraigned as an accused on a mistaken identity. He contended that he is not at all a director of accused No.1 company and therefore, the proceedings initiated against him is an abuse of process of law. 10. Annexure-K, is the resolution of the Board of Directors of Vahe Project Private Limited (Accused No.1). A perusal of the said document shows that accused No.6 i.e., Vijay kumar is neither shown as a director nor he has signed the said document. As per the said document, company represented by other directors - 10 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 nominated/authorized accused No.2, one of it's directors to represent the company in respect of the dispute between the parties including the complainant. 11. Annexure-E is the Article of Association of accused No.1 company namely Vahe Project Pvt., Ltd. Even in the said document, name of accused No.6 is not shown as one of the directors of the company, whereas the names of other persons including one Venkataraman Karunadidhi, who is now arraigned as accused No.5 are shown. 12. Annexure-F is the Memorandum of Association of Vahe Project Pvt., Ltd., wherein the name of accused No.6 namely Vijay Kumar is not shown as a director of the company. In the documents at Annexure G, it can be seen that accused No.6 is shown as one of the shareholders of the company. 13. From the above documents, which are not disputed, it can be said that accused No.6, Vijay Kumar is - 11 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 not shown as Director of accused No.1 company. Except the bald averments in the complaint that the said accused is also one of the directors of the company, there are no material to show that the said accused No.6 was also a director of the company or in charge of the affairs of the company and therefore, the proceedings initiated against the said accused is liable to be quashed. 14. In so far as accused No.5 Venkataraman, in Crl.P.No.7192/2022, the contention of the learned counsel for petitioner that the said petitioner is not at all a director and not connected to the company etc. cannot be accepted at this stage. In the above documents, one Venkataraman is shown as accused No.5 and therefore, keeping open all the contention of the said petitioner to be urged before the Trial Court, Crl.P.No.7192/2022 is dismissed. 15. Crl.P.No.3130 and Crl.P.No.3265/2023 are allowed. - 12 - NC: 2025:KHC:15387 CRL.P No. 3130 of 2023 C/W CRL.P No. 7192 of 2022 CRL.P No. 3265 of 2023 16. The proceedings in C.C.No.32695/2021 and C.C.No.32687/2021 pending on the file of XIX ACMM, Bengaluru, against accused No.6/Vijaykumar are quashed. Sd/- (MOHAMMAD NAWAZ) JUDGE LDC List No.: 1 Sl No.: 19 CT: BHK