- 1 - NC: 2025:KHC:12774 CRL.P No. 13839 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 13839 OF 2024 (482(Cr.PC) / 528(BNSS)) BETWEEN: 1. SRI CHETHAN KUMAR S/O SRI PRASANNA KUMAR, AGED ABOUT 42 YEARS, R/AT NO 61, PVR GREENS EBENEZER INTERNATIONAL SCHOOL ROAD, BEHIND APMC YARD, BENGALURU - 560100. 2. SRI NAGESH REDDY S/O SRI CHINNAPPA REDDY AGED ABOUT 52 YEARS, R/AT NO 304, 17TH MAIN, SHAMANNA GARDEN, SARAKKI LAKE, BENGALURU - 560 027. ALSO AT PVR GREENS, EBENEZER INTERNATIONAL SCHOOL ROAD, BEHIND APMC YARD, BENGALURU 560 100. 3. SRI SOMSHEKAR REDDY S/O SRI OBALA REDDY AGED ABOUT 50 YEARS, R/AT NO 29, T C PALYA LAYOUT, HOSUR ROAD, BENGALURU - 560 049. …PETITIONERS (BY SRI. SRINIVAS RAO S S., ADVOCATE) Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:12774 CRL.P No. 13839 of 2024 AND: 1. STATE OF KARNATAKA BY CUBBON PARK POLICE STATION, REPRESENTED BY SPP HIGH COURT BUILDING BENGALURU - 560 001. 2. SRI SAMPAD KUMAR M S/O SRI ASHOK KUMAR M AGED ABOUT 34 YEARS, R/AT NO 1 8TH CROSS, 7TH MAIN, 2ND BLOCK, JAYANAGAR, BENGALURU - 560 011. …RESPONDENTS (BY SRI. YOGESH KUMAR., ADVOCATE) THIS CRL.P IS FILED U/S.482(FILED U/S.528 BNSS) CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.13714/2022 PENDING ON THE FILE OF THE III ADDITIONAL CHEIF METROPOLITAN MAGISTRATE, BENGALURU FOR THE OFFENCE P/US/ 406,420 R/W SEC.34 OF IPC 1860. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER The petitioner/accused Nos.3 to 5, who have been charge-sheeted for the offences punishable under Section 406 and 420 of the IPC read with Section 34 of the IPC are before this Court seeking relief. - 3 - NC: 2025:KHC:12774 CRL.P No. 13839 of 2024 2. The prosecution alleges that accused Nos.1 and 2 have approached the respondent - Bank to avail of a loan for purchasing two flats in a project developed by S2Homes, of which accused Nos.3 to 5 are partners. 3. Accordingly, a tripartite agreement was entered into between accused Nos.1 and 2, the developer, and the respondent - Bank, and the subject flats were mortgaged to the respondent - Bank as security for repayment of the loan. During the subsistence of the tripartite agreement, the accused, with the intention to deceive the respondent - Bank, sold the subject flats in the favour of third parties, so as to defraud the respondent - Bank. 4. Heard learned counsel for the petitioner, learned counsel for respondent No.2, and Learned HCGP for the respondent – State. 5. Admittedly, during the subsistence of the tripartite agreement, the subject flats were sold in the favour of third parties. However, accused Nos.1 and 2 (the borrowers of the loan) have closed the loan account by depositing the entire outstanding amount due. 6. There is no material to establish that accused Nos.3 to 5 conspired with accused Nos.1 and 2 to induce the respondent - Bank to enter into the tripartite agreement with an intent to deceive. In the absence of any material to substantiate the same, in the absence of essential elements to constitute the commission of the aforesaid offences, the - 4 - NC: 2025:KHC:12774 CRL.P No. 13839 of 2024 continuation of the proceedings would be an abuse of the process of law. 7. Accordingly, I pass the following ORDER (i) Accordingly, the petition is allowed. (ii) The impugned proceedings in C.C.No.13714/2022 on the file of III Additional Chief Judicial Magistrate Bengaluru insofar it relates to accused Nos.3 to 5 is hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE TIN List No.: 1 Sl No.: 13