- 1 - NC: 2025:KHC-D:3970 CRL.P No. 102754 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 102754 OF 2023 BETWEEN: SMT. LAXMI W/O. UDAY @ UDAYKUMAR SHETTY AGE. 42 YEARS, OCC. BUSINESS, R/O. M/S SHARP COMPUTERS, YASH PLAZA, 2ND FLOOR, CIVIL HOSPITAL ROAD, NEAR KOLHAPUR CIRCLE, BELAGAVI, DIST. BELAGAVI-590001. …PETITIONER (BY SRI. JAGADISH PATIL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA THROUGH CEN CRIME PS, BELAGAVI, NOW REP. BY SPP, HIGH COURT OF KARNATAKA, BENCH AT DHARWAD. 2. RV MANJUNATH S/O. VEERANNA, AGE. 58 YEARS, OCC. SERVICE, R/O. KEONICS, 2ND FLOOR, TTMC A BLOCK, BMTC, SHANTI NAGAR, K.H. ROAD, BENGALURU-560027. …RESPONDENTS (BY SRI. T.HANUMAREDDY, AGA FOR R1; NOTICE TO R2 IS SERVED) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.PC., SEEKING TO, QUASH THE FIR CRIME NO. 7/2023 DATED 16.01.2023 REGISTERED BY CEN CRIME POLICE BELAGAVI CITY FOR OFFENCES PUNISHABLE UNDER SECTION 409, 416 AND 420 OF IPC AND ALL FURTHER PROCEEDING PURSUANT THERETO WITH RESPECT TO THE PETITIONER. Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-D:3970 CRL.P No. 102754 of 2023 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. The petitioner challenges the registration of the FIR for offences punishable under Sections 409, 416, and 420 of the Indian Penal Code (IPC) and is before this Court seeking relief. 2. Respondent No.2 lodged the FIR, alleging that an agreement was entered into with the petitioner for appointing him as a franchisee to run computer education and services for a period of five years. It is further alleged that, having been entrusted with the franchise, the petitioner failed to pay the agreed royalty amount. 3. Although served with notice, Respondent No.2 (the complainant) has not appeared in person or through counsel, and is therefore placed ex-parte. 4. Heard learned counsel for the petitioner and the learned Additional Government Advocate for Respondent No.1 (the State). 5. A perusal of the FIR reveals that the dispute between the parties arises solely from the non-payment of royalty under the agreement. The FIR does not specify the exact sum that the petitioner is liable to pay, but rather makes general and omnibus allegations that the petitioner did not pay the royalty. Moreover, the dispute pertains to a breach of the terms and conditions of the - 3 - NC: 2025:KHC-D:3970 CRL.P No. 102754 of 2023 agreement—a matter that is inherently civil in nature—and has been given a criminal hue likely to pressure the petitioner into a settlement. In such circumstances, the continuation of criminal proceedings would be an abuse of the process of law. 6. Additionally, the FIR does not allege that the petitioner induced Respondent No.2 to enter into the agreement with any intent to deceive. In the absence of these essential elements necessary to establish an offence under Section 420 of the IPC, the continuation of the investigation is unwarranted and constitutes an abuse of the process of law. Accordingly, the petition is allowed, and the impugned FIR in Crime No. 07/2023, registered by the CEN Crime Police Station, Belagavi, is hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE AC Ct:vh List No.: 1 Sl No.: 250