- 1 - NC: 2025:KHC-D:1535 CRL.P No. 100342 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 100342 OF 2025 (482(Cr.PC)/528(BNSS)) BETWEEN: 1. SRI. SHARAD S/O. BACHARAM PATIL AGE. 53 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 2. SRI. GOPAL S/O. RAMU MAGADUM AGE. 57 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 3. SRI. YUVARAJ S/O. ISHWAR PATIL AGE. 43 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 4. SRI. VISHNU S/O. MAHADEV PATIL AGE. 48 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 5. SMT. SARITA W/O. SHARAD PATIL AGE. 43 YEARS, OCC. HOUSEHOLD WORK, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 6. SMT. SAROJINI W/O. SAGAR PATTANKUDE AGE. 51 YEARS, OCC. HOUSEHOLD WORK, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. 7. SRI. DILIP S/O. BAHU KAMBALE AGE. 62 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. B K MAHENDRAKUMAR Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.29 15:27:21 +0530 - 2 - NC: 2025:KHC-D:1535 CRL.P No. 100342 of 2025 8. SRI. VITHAL S/O. TAMMANI MADYAPPAGOL AGE. 43 YEARS, OCC. AGRICULTURE, R/O. CHANDUR VILLAGE, TAL. CHIKODI, DIST. BELAGAVI-591201. …PETITIONERS (BY SRI. SRINAND A.PACHHAPURE AND SRI. RAJENDRA R.PATIL, ADVOCATES) AND: 1. THE STATE OF KARNATAKA THROUGH ANKALI POLICE STATION, NOW REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, DHARWAD, BENCH AT DHARWAD-580011. 2. SRI. ADINATH S/O. ARIHANT KARNAWADI AGE. 43 YEARS, OCC. INSPECTOR OF CO-OPERATIVE SOCIETIES, OFFICE OF CO-OPERATIVE DEVELOPMENT OFFICER, NOW ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, CHIKODI, TAL. CHIKODI, DIST. BELAGAVI-591201. …RESPONDENTS (BY SRI. ASHOK T.KATTIMANI, AGA FOR R1) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO, QUASH THE PROCEEDINGS IN CC NO.405/2021 PENDING ON THE FILE OF COURT OF II ADDL.CIVIL JUDGE AND JMFC, CHIKODI REGISTERED FOR THE OFFENCE PUNISHABLE U/S 406, 408, 409 AND 420 OF IPC, ORDER SHEET MARKED AT ANNEXURE-A IN SO FAR AS PETITIONERS/ACCUSED NO.7, 8, 11, 12, 13, 14, 15 AND 17 ARE CONCERNED. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR - 3 - NC: 2025:KHC-D:1535 CRL.P No. 100342 of 2025 ORAL ORDER 1. The petitioners are being prosecuted for offences punishable under Sections 406, 408, 409, and 420 of the Indian Penal Code (IPC). 2. The prosecution alleges that the petitioners, in their capacity as office bearers of the Managing Committee of Prathamika Krishi Pattina Sahakari Sangha, Chandur, Taluk Chikodi, from 28.03.2011 to 31.03.2017, failed to maintain the mandatory balance of ₹10 lakhs and instead retained ₹40 lakhs in cash, thereby causing a financial loss to the Society. It is further alleged that the accused, without obtaining permission from the competent authority, constructed a building on the Society’s land, leading to further losses. Additionally, they are accused of investing in shares of Reliance Life Insurance in their individual capacity without requisite approval, thereby causing financial harm to the Society. Based on these allegations, the learned Magistrate, after accepting the charge sheet, took cognizance of the offences, prompting the filing of this petition. 3. The Assistant Registrar of Societies submitted a report under Section 64 of the Karnataka Cooperative Societies Act, 1959, alleging that the petitioners, during their tenure as office bearers of the Society, misappropriated the Society’s funds. The report recommended criminal action against the petitioners, leading to the lodging of the FIR by respondent No. 2. 4. It is an admitted fact that the inquiry report under Section 64 of the Act has been set aside by the appellate authority and remanded to the competent authority for fresh consideration. Since the inquiry report forms the basis for the lodging of the FIR, its nullification undermines the legal foundation of the criminal proceedings. - 4 - NC: 2025:KHC-D:1535 CRL.P No. 100342 of 2025 5. Accused Nos. 1 to 6, 9, 10, and 16 had previously challenged the same impugned proceedings before this Court in Crl.P.No.101660/2021. By an order dated 08.01.2025, this Court quashed the proceedings against the petitioners therein. Therefore, this petition also deserves to be disposed of in terms of the order passed in Crl.P.No.101660/2021. ORDER a) The petition is allowed. b) The impugned proceedings in CC No.405/2021 pending on the file of learned II Addl. Civil Judge and JMFC, Chikodi, against the petitioners, are hereby quashed. c) Liberty is reserved to respondent No.2 to initiate appropriate action against the petitioners in accordance with law. d) Pending applications, if any, are disposed off as not surviving for consideration. Sd/- (HEMANT CHANDANGOUDAR) JUDGE JTR Ct:vh List No.: 2 Sl No.: 29