- 1 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 8740 OF 2023 (482(Cr.PC)/ 528(BNSS)) C/W CRIMINAL PETITION NO. 7972 OF 2023 CRIMINAL PETITION NO. 7980 OF 2023 CRIMINAL PETITION NO. 8231 OF 2023 CRIMINAL PETITION NO. 8264 OF 2023 CRIMINAL PETITION NO. 8278 OF 2023 CRIMINAL PETITION NO. 8283 OF 2023 CRIMINAL PETITION NO. 8314 OF 2023 CRIMINAL PETITION NO. 8532 OF 2023 CRIMINAL PETITION NO. 8534 OF 2023 CRIMINAL PETITION NO. 8551 OF 2023 CRIMINAL PETITION NO. 8575 OF 2023 CRIMINAL PETITION NO. 8578 OF 2023 IN CRL.P No. 8740/2023 BETWEEN: UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI -576 101. REPRESENTED BY ITS MANAGING DIRECTOR MR. P. VILAS NAYAK, S/O P. GOPALAKRISHNA NAYAK, AGED AOBUT 38 YEARS, RESIDING AT NO.2-99, Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS HANUMAN COMPOUND, CHITPADY, UDUPI -576 101. …PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: SATHISH SHETTY S/O LATE KORAGA SHETTY, AGED ABOUT 55 YEARS, RESIDING NEAR SOCIETY, 2-17, PALLI-KARKALA MAIN ROAD, KUNTADY POST, KALLYA VILLAGE, KARKALA TALUK, UDUPI. …RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO (i) CALL FOR RECORDS RELATED TO PROCEEDINGS UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT VIDE C.C.1461 OF 2021; (ii) SET ASIDE THE IMPUGNED ORDER DATED 09.11.2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND J.M.F.C., KARKALA, IN P.C.R.NO.302/2021 REGISTERING THE SAME AS C.C.NO.1461/2021 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 7972/2023 BETWEEN: MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. - 3 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS EXECUTIVE DIRECTOR, UDUPI TRANSPORT CO. LTD., CHITPADY, UDUPI-576 101. ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: A. CHANDRASHEKAR S/O LATE KORAGA SHETTY, AGED ABOUT 55 YEARS, RESIDING NEAR SOCIETY, 2-17, PALLI-BELTHANGADY MAIN ROAD, KUNTADY POST, KALLYA VILLAGE, BELTHANGADY TALUK, UDUPI-574 244. ...RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 09.11.2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND JMFC, BELTHANGADY, IN P.C.R.NO.257/2021 REGISTERING THE SAME AS C.C.NO.395/2021 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 7980/2023 BETWEEN: UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG. CHITPADY, UDUPI-576 101. REPRESENTED BY - 4 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS ITS MANAGING DIRECTOR MR. P. VILAS NAYAK, S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: GURURAJA K S/O YALLAPPA NAIK, AGED ABOUT 53 YEARS, 3-171, DURGANAGARA PADU, ALEVOORU, GUDDE ANGADI, ALEVOORU POST, UDUPI-574 118. ...RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 04.01.2022 PASSED BY THE IV ADDL. CIVIL JUDGE AND J.M.F.C., UDUPI IN PCR.NO.976/2021 REGISTERING THE SAME AS C.C.NO.25/2022 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8231/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., - 5 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS CHITPADY, UDUPI-576 101. REPRESENTED BY ITS EXECUTIVE DIRECTOR P. VILAYAS NAYAK. 2. MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, R/AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. EXECUTIVE DIRECTOR OF UDUPI TRANSPORT PVT. LTD. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: CHANDRA N MADIVALA S/O NEELA MADIVALA, AGED ABOUT 46 YEARS, RESIDING AT ISHWARI NILAYA, KAJE MANE, JODUKATTE, MIYYAR VILLAGE AND POST, KARKALA TALUK, UDUPI. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 16TH NOVEMBER, 2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND J.M.F.C., KARKALA, IN P.C.R.NO.309 OF 2021 REGISTERING THE SAME AS C.C.NO.1533 OF 2021 UNDER SEC. 138 OF N.I ACT AND THEREBY REJECT THE SAID COMPLAINT. - 6 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS IN CRL.P NO. 8264/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS MANAGING DIRECTOR. 2. MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, R/AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. EXECUTIVE DIRECTOR OF UDUPI TRANSPORT PVT. LTD. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: DAYANANDA ACHARYA S/O THIMMAPPA ACHARYA, AGED ABOUT 47 YEARS, RESIDING AT RATHNA NIVAS, KELAKILA, MUDRADI VILLAGE AND POST, HEBRI TALUK, UDUPI-576 112. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO SET ASIDE THE IMPUGNED ORDER DATED 12TH NOVEMBER, 2021 PASSED BY THE II ADDL. CIVIL JUDGE AND J.M.F.C., KARKALA, - 7 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS IN P.C.R.NO.304 OF 2021 REGISTERING THE SAME U/SEC. 138 OF N.I. ACT, AS C.C.NO.1525 OF 2021 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8278/2023 BETWEEN: UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG. CHITPADY, UDUPI-576 101. REPRESENTED BY ITS OFFICER AND DIRECTOR, MR. P. VILAS NAYAK, S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, R/AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: SATHISH SHETTY S/O LATE KORAGA SHETTY, AGED ABOUT 55 YEARS, R/AT NEAR SOCIETY, 2-17, PALLI-KARKALA MAIN ROAD, KUNTADY POST, KALLYA VILLAGE, KARKALA TALUK, UDUPI. …RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) - 8 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS THIS CRL.P IS FILED U/S 482 OF CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 09.11.2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND J.M.F.C., KARKALA IN P.C.R.NO.301/2021 REGISTERING THE SAME AS C.C.NO.1460/2021 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8283/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS MANAGING DIRECTOR. 2. MR. P. VILAS NAYAK S/O P GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, R/AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: VASAPPA GOWDA P S/O RAMANNA GOWDA P, AGED ABOUT 53 YEARS, R/AT DOOR NO.4/171, NEAR S.R. SCHOOL, - 9 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS HEBRI VILLAGE AND POST, UDUPI-576 112. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 23RD NOVEMBER, 2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND JMFC, KARKALA, IN P.C.R.NO.318 OF 2021 REGISTERING THE SAME AS C.C.NO.1570/2021 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8314/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS MANAGING DIRECTOR. 2. MR. P. VILAS NAYAK EXECUTIVE DIRECTOR, S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. 3. MR. PANGALA GOPALAKRISHNA NAYAK DIRECTOR, S/O LATE SRI. P.N. NAYAK, AGED ABOUT 70 YEARS, - 10 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: KARTHIK U.N. S/O NARASIMHA U., AGED ABOUT 27 YEARS, RESIDING AT 6/32, NADUMANE, VTC UPPOOR, UDUPI-576 105. ...RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 04.01.2022 PASSED BY THE III ADDL. CIVIL JUDGE AND J.M.F.C., UDUPI, IN P.C.R.NO.1046/2021 REGISTERING THE SAME U/SEC. 138 OF N.I. ACT, AS C.C.NO.31/2022 AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8532/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS EXECUTIVE DIRECTOR, P. VILAS NAYAK. - 11 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS 2. MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, R/AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. EXECUTIVE DIRECTOR OF UDUPI TRANSPORT PVT. LTD. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: SATHISH ACHARYA S/O SRINIVASA ACHARYA, AGED ABOUT 45 YEARS, RESIDING AT PADIBETTU, NEAR KANCHARLABETTU, NELLIKAR POST, NALLUR VILLAGE, KARKALA TALUK, UDUPI. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 16.11.2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND J.M.F.C., KARKALA, IN P.C.R.NO.310/2021 REGISTERED THE SAME AS C.C.NO.1534/2021 UNDER SEC. 138 OF N.I. ACT AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8534/2023 BETWEEN: 1. UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER - 12 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS THE COMPANIES ACT, 1956 WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS EXECUTIVE DIRECTOR, P. VILAS NAYAK. 2. MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. 3. MR. PANGALA GOPALAKRISHNA NAYAK S/O P.N. NAYAK, AGED ABOUT 70 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND CHITPADY, UDUPI-576 101. ...PETITIONERS (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: GANESH SUVARNA S/O PUTTA SALIAN AGED ABOUT 49 YEARS, RESIDING AT NO.1/260, MOODUPERAMPALLI, NEAR SOCIETY, SHIVALLI, KUNJIBETTU POST, UDUPI TALUK, UDUPI-576 102. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) - 13 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 04.01.2022 PASSED BY THE PRINCIPAL CIVIL JUDGE AND J.M.F.C., UDUPI, IN P.C.R.NO.977/2021 REGISTERED THE SAME AS C.C.NO.26/2022 UNDER SEC. 138 OF N.I. ACT, AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8551/2023 BETWEEN: MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. EXECUTIVE DIRECTOR OF UDUPI TRANSPORT COMPANY PVT. LTD. ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: VENKATESH KAMATH S/O VITTAL KAMATH, AGED ABOUT 48 YEARS, RESIDING AT AVARSE HOUSE, AVARSE VILLAGE AND POST, UDUPI. ...RESPONDENT (BY SRI. GANAPATHI NAIK KANGOD, ADVOCATE) THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO (i) - 14 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 18.11.2021 PASSED BY THE PRINCIPAL SENIOR CIVIL JUDGE AND JMFC., BELTHANGADY, DAKSHINA KANNADA, IN P.C.R.NO.258/2021 REGISTERING THE SAME AS C.C.NO.394/2021 UNDER SEC. 138 OF N.I. ACT AND THEREBY REJECT THE SAID COMPLAINT. IN CRL.P NO. 8575/2023 BETWEEN: MR. P. VILAS NAYAK S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CITPADY, UDUPI-576 101. EXECUTIVE DIRECTOR OF UDUPI TRANSPORT PVT. LTD., ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: RAJKUMAR S/O MAJA NAIKA, AGED ABOUT 48 YEARS, RESIDING AT MALALIKOPPA, THIRTHAHALLI TALUK, SHIVAMOGGA-577 432. ...RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 16.11.2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND JMFC, THIRTHAHALLI, IN P.C.R.NO.252 OF 2021 REGISTERING THE SAME AS C.C.NO.3040 OF 2021 AND THEREBY REJECT THE SAID COMPLAINT. - 15 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS IN CRL.P NO. 8578/2023 BETWEEN: UDUPI TRANSPORT PVT. LTD. A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956, WITH ITS REGISTERED OFFICE ADDRESS AT HANUMAN TRANSPORT CO. BLDG., CHITPADY, UDUPI-576 101. REPRESENTED BY ITS EXECUTIVE DIRECTOR, MR. P. VILAS NAYAK, S/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 38 YEARS, RESIDING AT NO.2-99, HANUMAN COMPOUND, CHITPADY, UDUPI-576 101. ...PETITIONER (BY SRI. AJITH A SHETTY, ADV. (THROUGH VC)) AND: SATHISH SHETTY S/O LATE KORAGA SHETTY, AGED ABOUT 55 YEARS, RRESIDING NEAR SOCIETY, 2-17, PALLI-KARKALA MAIN ROAD, KUNTADY POST, KALLYA VILLAGE KARKALA TALUK, UDUPI. ...RESPONDENT (BY SRI. GANAPATHI, ADVOCATE) THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO (i) CALL FOR RECORDS; (ii) SET ASIDE THE IMPUGNED ORDER DATED 09TH NOVEMBER, 2021 PASSED BY THE PRINCIPAL CIVIL JUDGE AND JMFC, KARKALA, IN P.C.R.NO.300/2021 REGISTERING THE SAME AS C.C.NO.1459/2021 AND THEREBY REJECT THE SAID COMPLAINT. THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 16 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ ORAL ORDER In these petitions, petitioner is common i.e., Udupi Transport Private Limited, a company incorporated under the Companies Act, 1956 represented by its Managing Director. 2. Proceedings initiated by the respective complainants by filing a private complaint alleging offence punishable under Section 138 of Negotiable Instruments Act, 1881 (for short ‘N.I. Act’) are under challenge. 3. Since the questions involved is one and the same, all these petitions are taken up together and disposed of by a common order, with the consent of both the parties. 4. Brief facts of the case are: That the petitioner entity operates the contract carriage and stage carriage vehicles on inter-district and intra-district routes within the State of Karnataka. The respondents/complainants, employees working under the petitioner approached the Labour Officer/Conciliatory Officer, - 17 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS Udupi, claiming that they are regular employees of the petitioner entity and they are deprived of their salaries for the period between March-2020 to June-2020 and their services were terminated and replaced by other individuals. Petitioner with an intention of buying peace, agreed to pay off certain pre-determined sums to the employees as part of settlement scheme and in reciprocation, they were given solemn undertaking not to putforth any claim against the petitioners. This resulted in an order passed by the Labour Officer on 19.4.2021, recording a settlement so as to give quietus to the issue. In terms of the settlement, post dated cheques were issued to the respondents/complainants, which are the subject matter of the proceedings. 5. Grievance of the petitioner is that, as per the terms of settlement and the order dated 19.4.2021 in No.IDA/SR-02/2020-21, the employees who received the cheques have given an undertaking as per clause 9 that henceforth, they will not raise any claim or demand. However, the employees / respondents herein have gone against their own undertaking and submitted a - 18 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS representation dated 30.04.2021 to the ESI Corporation alleging that employers’ contribution for a particular period of time remained unpaid by the petitioner and based on the said representation, the ESI Corporation has caused a demand notice dated 11.5.2021 upon the petitioner. 6. It is the contention of the learned counsel for petitioner that since the respondents have gone against their own undertaking given before the Labour Officer in the above mentioned case, petitioner was constrained to instruct their banker not to honour the cheques issued as per the settlement. It is his further contention that post dated cheques were issued in terms of the agreement entered into between the parties and subject to the compliance of the conditions therein and in view of the violation, it cannot be said that the debt if any due to the complainants are legally enforceable debt, which is a condition precedent for initiating proceedings for an offence punishable under Section 138 of N.I. Act. - 19 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS 7. Learned counsel would draw the attention of the Court to Section 139 of N.I. Act, to contend that the complainants have to prove that the holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in part, of any debt or other liability, for which three ingredients of Section 138 of N.I. Act have to be fulfilled and therefore, unless the complainants prove that there is existence of legally recoverable debt, only then a presumption under Section 139 of N.I. Act, come into play. The learned counsel would therefore stress on his arguments that the alleged cheques were issued as a part of a settlement, which imposed certain obligations on either sides and since the complainants have breached the terms and conditions of the settlement, it cannot be said that the offences as alleged by them are made out. 8. Learned counsel appearing for respondents/complainants in all the petitions though not disputed the order dated 19.4.2021 passed by the Labour Officer noted supra, having admitted that as per the settlement 12 employees have received 3 post dated - 20 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS cheques, would however contend that all the cheques were returned with an endorsement “funds insufficient” and therefore, respective complaints were filed. He contended that after the settlement, none of these complainants have submitted any request letter to any authority such as ESI or Gratuity Controlling authority and the documents/letter dated 30.4.2021 alleged to have been issued by the employees does not bear signatures of these respondents/complainants. He would also contend that information was sought through RTI under the RTI Act from the ESI, Mangaluru and the Central Information Officer, ESI clarified and issued a letter dated 12.6.2024 stating that no such letter dated 30.4.2021 was received by the Sub- regional office of the ESI, Mangaluru . 9. The respondents/complainants have categorically denied having issued any letter to the ESI in violation of the terms agreed between them and the petitioner herein. That being so, in these petitions, the question as to whether the cheques issued are towards legally enforceable debt or not cannot be determined. It is a matter to be decided by the - 21 - NC: 2025:KHC:14599 CRL.P No. 8740 of 2023 C/W CRL.P No. 7972 of 2023 CRL.P No. 7980 of 2023 AND 10 OTHERS trial Court. Since the respondents have not denied having participated in the proceedings before the Labour Officer / Conciliation Officer, Udupi Sub-Division, and the order dated 19.4.2021 (supra) and also having admitted that the cheques were issued in terms of settlement, the petitioner has ample opportunity to putforth his case before the trial Court by producing necessary documents. The trial Court shall consider the case of the petitioner without being influenced by any of the observations made in this order. 10. With the above observation, petitions are dismissed. 11. I.A.No.1/2024 filed by the respondent seeking initiation of criminal proceedings against the petitioner is dismissed. 12. I.A.No.2/2024 filed for vacating stay is disposed of. Sd/- (MOHAMMAD NAWAZ) JUDGE TL List No.: 1 Sl No.: 30 Ct:ar.