- 1 - NC: 2025:KHC-D:83 CRL.P No. 103135 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 6TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 103135 OF 2024 (482(CR.PC)/528(BNSS)) BETWEEN: SHRISHAILAYYA S/O DUNDAYYA SHINDOLIMATH, AGE: 46 YEARS, OCC: AGRIL., R/O: NEAR OLD BHOSALE FACTORY, MALLAPUR PG., GOKAK (RURAL), TQ: GOKAK, DIST: BEALGAVI-591 306. … PETITIONER (BY SRI. KIRANKUMAR CHATTIMATH, ADVOCATE) AND: SHAKIRAHMED S/O MALIKJAN BAGBAN, AGE: 50 YEARS, OCC: BUSINESS, R/O: GHATAPRABHA, TQ: GOKAK, DIST: BELAGAVI-591 306. … RESPONDENT (SOLE RESPONDENT SERVED BUT UNREPRESENTED) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), PRAYING TO QUASH THE ENTIRE PROCEEDINGS PENDING BEFORE THE ADDL. CIVIL JUDGE AND JMFC., GOKAK IN CC NO.8651/2023 FOR THE OFFENCE P/U/SEC. 138 OF N.I. ACT REGISTERED IN P.C.R. NO.367/2023 IN SO FAR AS PETITIONER/ACCUSED NO.4 AS NULL AND VOID. THIS PETITION IS COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.10 12:40:21 +0530 - 2 - NC: 2025:KHC-D:83 CRL.P No. 103135 of 2024 CORAM: THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. The respondent filed a private complaint under Section 200 of the Code of Criminal Procedure, 1973 (“Cr.P.C.”) alleging that the subject cheque was issued by accused No.1, the Managing Director of Sarvadnya Chits Private Limited, towards the return of money invested by the complainant. It was further alleged that the cheque, upon presentation, was dishonored for want of funds. The petitioner has been arraigned as accused No.4 on the ground that he was a Director of the said company. 2. Despite being served with notice, the respondent/complainant has not appeared before this Court, either in person or through counsel. 3. Heard the learned counsel for the petitioner. 4. A perusal of the complaint reveals the following: a) The complainant alleged that the money was invested in Sarvadnya Chits Private Limited, and the subject cheque was issued by accused No.1, who was the Managing Director of the said company. - 3 - NC: 2025:KHC-D:83 CRL.P No. 103135 of 2024 b) Section 141 of the Negotiable Instruments Act, 1881 (“NI Act”) stipulates that if the person committing an offence under Section 138 is a company, every person who, at the time the offence was committed, was in charge of and responsible for the conduct of the company’s business, as well as the company, shall be deemed guilty of the offence. c) In the present case, the company, Sarvadnya Chits Private Limited, has not been arraigned as an accused. This omission renders it impermissible to hold the petitioner/accused No.4 vicariously liable for the alleged offence under Section 141 of the NI Act. d) Furthermore, there is no specific allegation in the complaint that the petitioner, as a Director of the company, was in charge of or responsible for the conduct of the company’s business at the time the cheque was issued. The essential elements required to constitute an offence under Section 138 of the NI Act, particularly the vicarious liability of the petitioner under Section 141, are conspicuously absent in the complaint. - 4 - NC: 2025:KHC-D:83 CRL.P No. 103135 of 2024 5. In view of the above, the continuation of criminal proceedings against the petitioner/accused No.4 would amount to an abuse of the process of law. 6. The petition is allowed, and the proceedings initiated against the petitioner/accused No.4 under Section 138 of the NI Act are hereby quashed. 7. Hence, the following: ORDER i) Accordingly, the criminal petition is allowed. ii) The criminal proceedings in C.C. No.8651/2023 pending on the file of the Additional Civil Judge & JMFC, Gokak (P.C.R. No.367/2023), insofar as it relates to accused No.4, the petitioner herein, is hereby quashed. iii) The Trial Court shall proceed against other accused persons in accordance with law. Sd/- (HEMANT CHANDANGOUDAR) JUDGE KMS CT:BCK List No.: 1 Sl No.: 125