- 1 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH DATED THIS THE 9TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR. JUSTICE S RACHAIAH CRIMINAL PETITION NO. 200540 OF 2025 (482(Cr.PC)/528(BNSS)) BETWEEN: 1. KOUSAR BEGUM W/O J. NASIR, AGE: 61 YEARS, OCC: HOUSEHOLD WORK, R/O: 4-4-101/22/4A, DHANALAXMI LAYOUT, ZAHIRABAD, RAICHUR-584101. 2. J. NASIR @ J. NASIR AHMED, S/O J. BASHEERUDDIN, AGE: 71 YEARS, OCC: MECHANIC, R/O: 4-4-101/22/4A, DHANALAXMI LAYOUT, ZAHIRABAD, RAICHUR-584101. …PETITIONERS (BY SRI SACHIN M.MAHAJAN, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, BY NETAJI NAGAR POLICE STATION, RAICHUR-584101, BY ITS SHO, Digitally signed by SAMREEN AYUB DESHNUR Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 REPRESENTED BY SPECIAL P.P., HON'BLE HIGH COURT OF KARNATAKA, BENCH AT KALABURAGI-585103. 2. PUSHPA P. K. W/O PARAMESH K., AGE: 53 YEARS, OCC: FDA WORKING AT TAHSIL OFFICE ANDROON QUILLA, RAICHUR-584101. …RESPONDENTS (BY SRI GOPAL KRISHNA YADAV, HCGP FOR R1; R2 SERVED) THIS CRIMINAL PETITION IS FILED UNDER SECTION 528 OF BNSS,2023 PRAYING TO, QUASH THE IMPUGNED ORDER DATED 10-10-2024 PASSED BY THE LEARNED ADDITIONAL CIVIL JUDGE AND JMFC-III AT RAICHUR IN PC NO.395/2023 VIDE ANNEXURE-K, WHEREIN THE LEARNED MAGISTRATE WAS PASSED TO REJECT THE ‘B’ FINAL REPORT FILED BY NETAJI NAGAR POLICE IN CRIME NO.20/2017 AND FURTHER TOOK COGNIZANCE FOR THE ALLEGED OFFENCES PUNISHABLE UNDER SECTION 504, 420 R/W SECTION 34 OF IPC AGAINST THE PETITIONER NO.1 AND 2 HEREIN, WHICH IS NOW REGISTERED IN CC NO.4541/2024, BY ALLOWING THE PETITION. THIS CRIMINAL PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S RACHAIAH - 3 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 ORAL ORDER (PER: HON'BLE MR. JUSTICE S RACHAIAH) 1. The petitioners are before this Court seeking to quash the impugned order dated 10.10.2024 passed in P.C No.395/2023 registered as C.C No.4541/2024 on the file of Additional Civil Judge and JMFC-III at Raichur, wherein the Trial Court rejected the ‘B’ Final report and took cognizance against the petitioners/ accused Nos.1 and 2 for the offences punishable under Sections 504, 420 r/w 34 of IPC arising out of Crime No.20/2017. Factual matrix of the case: 2. The petitioners are husband and wife. The petitioner No.1 was the lawful owner and possession of house property bearing No.4-4-101/22/4 situated at Dhanalaxmi Layout, Raichur. In the year 2013, the petitioners were in dire need of funds to perform the marriage of their daughter, offered to sell the said house to the respondent No.2 for a sum of Rs.20,00,000/-. The respondent No.2 agreed to purchase the said house, accordingly, an agreement of sale was executed between - 4 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 the petitioner No.2 and respondent No.1. The respondent No.2 agreed to purchase the said house and paid earnest money at the time of execution of agreement of sale. However, she failed to adjust the remaining amount. The petitioner No.1 and respondent No.2 decided to cancel the agreement of sale dated 22.04.2013. Accordingly, the deed of cancellation was executed on 13.09.2013. Subsequently, the petitioner No.1 sold the said house in favour of Zaheer Miyan under the registered sale deed dated 23.09.2019. 3. It is stated that more than two years after the cancellation of the agreement, the respondent No.2 had issued a legal notice calling upon the petitioner No.1 to execute the sale deed on the basis of the agreement of sale, which was cancelled already. A private complaint was filed by the respondent No.2 making certain allegations against the petitioners. The Trial Court after registering the case directed the respondent police to register the FIR and conduct the investigation. 4. The respondent police after conducting the investigation, opined that the matter is of civil in nature, hence, filed ‘B’ - 5 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 report on 11.10.2017. The respondent No.2 had challenged the said ‘B’ report and he made sworn statement. The Trial Court passed the impugned order. Therefore, the petitioners are before this Court. 5. Heard Sri.Sachin M.Mahajan, learned counsel for the petitioners and Sri.Gopal Krishna Yadav, learned HCGP for the respondent No.1 – State. 6. It is the submission of the learned counsel for the petitioners that the order passed by the Trial Court is contrary to the facts and circumstances of the case. Therefore, the same is liable to be set aside. 7. It is further submitted that the entire dispute is purely civil in nature. The remedy available to the respondent No.2 is to file a suit for specific performance. The respondent No.2 had knowledge regarding the deed of cancellation of agreement dated 13.09.2013 and filed a private complaint on 18.02.2017 to enforce the agreement dated 22.04.2013, which clearly establishes the malafide intention. Having considered the delay in lodging the complaint and also not approaching the Civil Court for enforcement of agreement of sale, it would - 6 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 indicate that the respondent No.2 deliberately and with undue influence filed a private complaint in order to coerce them for settlement. Therefore, the impugned order is required to be set aside. Making such submissions, learned counsel for the petitioners prays to allow the petition. 8. Per contra, the learned High Court Government Pleader for the respondent No.1 – State vehemently submitted that the order dated 10.10.2024 is a reasoned order. The said order has been passed after considering the facts and circumstances of the case. Hence, the order passed by the Trial Court is required to be upheld. Making such submissions, the learned HCGP for the respondent prays to dismiss the petition. 9. Heard the learned counsel for the respective parties and also perused the findings of the Trial Court in rejecting the ‘B’ report. It is relevant to mention the brief facts which are essential to dispose of the petition. 10. The petitioners are the owners of the property. The petitioner No.2 entered into an agreement of sale with respondent No.2. As per the said agreement, respondent - 7 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 No.2 had to adjust the balance amount for the purpose of getting the sale deed executed. However, the respondent No.2 could not adjust the amount. Therefore, the deed of cancellation of agreement was executed on 13.09.2013. Thereafter, the said property was sold by the petitioners to the third party. Hence, a private complaint was filed on 18.02.2017 and it was referred to the jurisdictional police to register a case as per Section 156(3) of Cr.P.C. Hence, this petition. 11. Having gone through the facts and circumstances of the case, the entire case is relating to the agreement of sale dated 22.04.2013. The said agreement of sale was cancelled on 13.09.2013. The respondent No.2 had issued a legal notice to the petitioner No.1 on 09.11.2015 calling upon her to execute the sale deed. The reply was issued by the petitioner No.1 on 09.12.2015. However, a complaint came to be registered on 18.02.2017. The Trial Court took cognizance on 10.10.2024. 12. The order of taking cognizance was held to be proper for the reason that, the petitioners had not produced the cancellation deed dated 13.09.2013. Whether, the - 8 - NC: 2025:KHC-K:2279 CRL.P No. 200540 of 2025 petitioners are a witness to the said sale deed or consenting party to the cancellation of agreement of sale is not forthcoming in the said petition. In case, the said agreement is cancelled unilaterally, the said cancellation held to be vitiated as there was no notice issued by the petitioners before getting the sale agreement cancelled. Prima facie, it appears that there are materials to proceed against the petitioners. Therefore, the order of taking cognizance, in my considered view, is held to be proper and there is no infirmity in the said order. Hence, the petition deserves to be dismissed. 13. Accordingly, I proceed to pass the following: ORDER The petition is dismissed. Sd/- (S RACHAIAH) JUDGE SRT/UN List No.: 1 Sl No.: 43 CT:PK