- 1 - NC: 2025:KHC-D:191 CRL.P No. 101503 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 7TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 101503 OF 2022 (482(Cr.PC)/528(BNSS)) BETWEEN: GURUMURTHY @ KUBENDRAPPA S/O ERAPPA AGED. 52 YEARS, OCC. SERVICE, R/O. NO. 686/23, P DURGAMBIKA NILAYA, 4TH MAIN, 2ND CROSS, NEAR AIRTEL TOWER, BAGATSINGH NAGAR DAVANGERI TQ. DAVANAGERI, DIST. DAVANAGERI- 577001 …PETITIONER (BY SRI. GANGADHAR S HOSAKERI, ADVOCATE) AND: 1. STATE OF KARNATAKA GANGAVATHI TOWN POLICE STATION REP. BY THE STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, DHARWAD-580011. 2. SMT. PADMAVATI W/O THREEMURTHY AGE. 44 YEARS, OCC. SERVICE, R/O. HOSALLI HAV, VIJAYNAGAR COLONY, TQ. GANGAVATI, TQ. GANGAVATI, DIST. KOPPAL - 583227 …RESPONDENTS (BY SRI.T. HANUMAREDDY, AGA FOR R1) (R2-SERVED) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C., SEEKING TO QUASH ENTIRE PROCEEDINGS IN CRIMINAL CASE NO.1608/2018 PENDING BEFORE THE PRINCIPAL CIVIL JUDGE AND JMFC GANGAVATI, IN CONNECTION WITH THE GANGAVATI TOWN POLICE STATION CRIME NO.49/2015 FOR THE OFFENCE Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.21 07:28:40 +0530 - 2 - NC: 2025:KHC-D:191 CRL.P No. 101503 of 2022 PUNISHABLE U/SEC. 120 (B), 420 R/W SECTION 34 OF IPC AS AGAINST THE ACCUSED NO.2 THEREIN/PETITIONER HEREIN. 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/accused No.2, who is facing charges for the offences punishable under Sections 120-B and 420 read with Section 34 of the Indian Penal Code, is before this Court. 2. Respondent No.2 lodged an FIR alleging that accused Nos.1 to 4 received an amount of ₹5,00,000/- from CW1 to CW4, assuring them that permission would be granted to open a branch of Kubera Multipurpose Co-operative Society, Davanagere, in Gangavathi, and that ₹10,00,000/- would be provided for money- lending business in the name of the Society. Accused No.2 is alleged to be the founder of the Society, while accused Nos.1, 3, and 4 are its office bearers. 3. CW1 to CW4 deposited a sum of ₹5,44,040/- on different dates into the account of Kubera Multipurpose Co- operative Society, Davanagere. During the investigation, the Investigating Officer claimed that accused Nos.1 to 4 also received ₹5,60,000/-, collected as pigmy and fixed deposit amounts from CW1 to CW4 on behalf of the Society, without issuing any receipts. Bank statements were produced to show that ₹5,44,040/- had been deposited into the Society’s account. A cheque issued by the - 3 - NC: 2025:KHC-D:191 CRL.P No. 101503 of 2022 accused to CW1 to CW4 for repayment was dishonored for want of funds. Thus, it was alleged that the petitioner committed the offence of cheating by failing to repay the said amount. 4. Heard the learned counsel for the petitioner and the learned Additional Government Advocate for the respondent/State. Respondent No.2, though served with notice, has remained absent. 5. The allegation against the petitioner/accused is that he is the founder of the Society and, along with accused Nos.1, 3, and 4, induced CW1 to CW4 to deposit money into the Society’s account, promising to grant permission to open a branch in Gangavathi and to provide ₹10,00,000/- for money-lending business. 6. However, the prosecution has failed to produce any material to substantiate that the petitioner is the founder of the Society or was involved in its affairs. The sum of ₹5,44,040/- was deposited by CW1 to CW4 into the Society’s account on different dates and was not handed over to accused No.2. Further, there is no material to support the claim that ₹5,60,000/- was handed over to accused No.2. 7. In the absence of evidence to establish that accused No.2 is the founder of the Society, the allegation that he induced CW1 to CW4 to part with money in exchange for opening a branch in Gangavathi is baseless. The petitioner has been implicated solely on the basis of the self-serving statements of CW1 to CW4. There are no corroborative materials to substantiate the claim that - 4 - NC: 2025:KHC-D:191 CRL.P No. 101503 of 2022 the petitioner/accused No.2 induced CW1 to CW4 to deposit money into the Society’s account or collected money from them. 8. Therefore, the continuation of criminal proceedings against accused No.2 would amount to an abuse of the process of law. 9. For the foregoing reasons, the petition is allowed. The impugned proceedings in CC No.1608/2018 on the file of the learned Principal Civil Judge and JMFC, Gangavathi, insofar as they relate to petitioner/accused No.2, are hereby quashed. The trial Court is directed to proceed against the remaining accused in accordance with law, without being influenced by any observations made in this order. JTR List No.: 1 Sl No.: 72 Sd/- (HEMANT CHANDANGOUDAR) JUDGE