- 1 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 8773 OF 2023 BETWEEN: 1. SRI. RAMACHANDRA Y.B. @ RAMACHANDRA S/O LATE Y BORAIAH AGED ABOUT 47 YEARS R/O NO.96, YETHAGADAHALLI VILLAGE GUTHALU POST MANDYA TALUK MANDYA DISTRICT – 571 436. 2. SMT. NAGAMANI W/O Y.B. RAMACHANDRA AGED ABOUT 43 YEARS R/O NO.96, YETHAGADAHALLI VILLAGE GUTHALU POST MANDYA TALUK MANDYA DISTRICT – 571 436. …PETITIONERS (BY SRI. PRAMOD R, ADVOCATE) AND: 1. THE STATE BY MANDYA RURAL POLICE STATION REPRESENTED BY SPP HIGH COURT OF KARNATAKA BANGALORE – 01. 2. SMT. K.V. VIJAYALAKSHMI W/O SRI. DASEGOWDA AGED ABOUT 49 YEARS Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 R/O OF YADUGIRI NILAYA DPPR NO.9, OPPOSITE POULTRY FARM KIRAGAVALU ROAD KAVERI NAGARA MANDYA – 571 401. 3. SRI D HARSHA S/O SRI. M DASEGOWDA AGED ABOUT 28 YEARS R/O YADUGIRI NILAYA DPPR NO.9, OPPOSITE POULTRY FARM KIRAGAVALU ROAD KAVERI NAGARA MANDYA – 571 401. …RESPONDENTS (BY SMT. RASHMI PATEL, HCGP FOR R1; SRI. SUDHARSHAN L, ADVOCATE FOR R2; R3 IS SERVED) THIS CRL.P IS FILED U/S.482 CR.P.C PRAYING TO ALLOW THE PETITION AND QUASH THE CHARGE SHEET DATED 18.12.2020 FILED IN C.C.NO.1109/2021 ON THE FILE OF THE JUDICIAL MAGISTRATE FIRST CLASS AT MANDYA FOR THE OFFENCE P/U/S.406, 420, 465, 468, 120-B, 504, 506 OF IPC R/W SEC.34 OF IPC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ - 3 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 ORAL ORDER 1. Petitioners have preferred this petition to quash the charge sheet filed before the Judicial Magistrate First Class at Mandya in C.C.No.1109/2021 for the offences punishable under Sections 406, 420, 465, 468, 120-B, 504 and 506 of Indian Penal Code (for short ‘IPC’) r/w Section 34 of IPC. 2. Heard both the sides and perused the material on record. 3. Respondent Nos.2 and 3 filed a private complaint against the petitioners alleging aforementioned offences. It is averred in the complaint that the first accused is a businessman running liquor business in Mandya town, in the name and style “Marthanda Wines”. Between January 2017 to September 2017, both the accused approached the complainants and requested to invest a sum of Rs.53,00,000/- capital amount for the expansion of their liquor trade and to invest fund in their liquor business in the name and style ”M/s. Marthanda Spirit zone” at Arkeshwara Nagara, Mandya. Believing the words of the accused, they arranged necessary funds from their earnings and also borrowing loan from friends and well-wishers. - 4 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 3.1 It is further stated that the complainants as well as accused persons executed a mutual finance commitment agreement and the accused have also acknowledged the receipt of Rs.53,00,000/- from the complainant. It is further alleged that, at no point of time, the accused persons bothered to include the name of the complainants as partners in their liquor business nor did they pay any profit out of the liquor business to the complainants and thereby cheated them. 4. It is contended by the learned counsel for petitioners that the husband of respondent No.2 is a public servant, against whom a case in Crime No.12 of 2019 has been registered for the offences punishable under Sections 7(a), 7A, and 12 of Prevention of Corruption Act, 1988 (for short ‘PC Act’) and Crime No.3/2020 has been registered for the offences punishable under Sections 13(1)(b) r/w 13(2) of PC Act. The petitioners herein have given their statement under Section 164 of the Code of Criminal Procedure in the said case. 4.1 It is his contention that the amount allegedly given to the petitioners by the complainant is ill-gotten money and the complainant has filed a complaint under section 138 of the - 5 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 Negotiable Instruments Act in respect of the cheque allegedly issued by the petitioners for the above said amount. It is contended, the ingredients of the offences alleged by the complainants in the present case are not made out and the entire proceedings are nothing but an abuse of process of the court . 5. Learned Counsel appearing for Respondent No. 2 submitted that the petitioners have filed an application for discharge and even the said application has been rejected by the Trial Court. A copy of the order dated 14-06-2023 passed in C.C. No.1109 of 2021 is produced, which shows that the application filed by the accused under Section 239 of the Code of Criminal Procedure was dismissed by the learned Magistrate. 6. A perusal of the complaint goes to show that the parties have executed a mutual finance commitment agreement and the accused have acknowledged the receipt of Rs.53,00,000/- from the complainant. The allegations are that the accused approached the complainants requesting them to invest fund in their liquor trade business and thereafter cheated them by not - 6 - NC: 2025:KHC:12395 CRL.P No. 8773 of 2023 including the complainant's name as a partner in their liquor business etc. 7. The contention of the learned counsel for the petitioners that there was no intention to cheat the complainants at the inception of the transaction etc., cannot be accepted at this stage as it is a matter for trial. The petitioners have not challenged the order rejecting the discharge application. The filing of the complaint alleging the offense under Section 138 of NI Act is also not a ground to quash the proceedings. There is no merit in this petition. Petition is accordingly dismissed. Sd/- (MOHAMMAD NAWAZ) JUDGE Bss List No.: 1 Sl No.: 5