- 1 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MS. JUSTICE J.M.KHAZI CRIMINAL PETITION NO. 197 OF 2020 (482(Cr.PC) / 528(BNSS)) BETWEEN: SRI K MURALI S/O LATE K. KRISHNAIAH SHETTY, AGED ABOUT 63 YEARS, RESIDING AT NO.1, G 8TH STREET, JOGU PALYA, ULSOOR, BENGALURU-560 008. …PETITIONER (BY SRI. H J ANANDA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY VIDHANA SOUDHA POLICE STATION, REPRESENTED BY THE STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, BENGALURU-560 001. 2. THE KARNATAKA STATE CO-OPERATIVE APEX BANK LIMITED LEGISLATOR HOUSE BRANCH, BENGALURU-560 001, REPRESENTED BY ITS BRANCH MANAGER, SRI. ARAVIND. P. S. …RESPONDENTS (BY SRI.VINAY MAHADEVAIAH, HCGP FOR R1; Digitally signed by REKHA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 SRI.ABHINAV, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING TO QUASH THE CRIMINAL PROCEEDINGS INITIATED AGAINST THE PETITIONER IN C.C.NO.13473/2013 ON THE FILE OF THE VIII ADDITIONAL CHIEF METROPOLITAN MAGISTRATE AT BENGALURU FOR THE OFFENCE P/U/S.467,468,471,420,120-B R/W SEC.34 OF IPC VIDE AT ANNEXURE-A ONLY IN SO FAR AS THE PETITIONER IS CONCERNED. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MS. JUSTICE J.M.KHAZI ORAL ORDER Petitioner, who is arraigned as accused No.1 has filed this petition under Section 482 of Cr.P.C, to quash the criminal proceeding initiated against him in C.C.No.13473/2013 on the file of a Additional Chief Metropolitan Magistrate, Bengaluru, for the offences punishable under Sections 467, 468, 471, 420, 120-B r/w Section 34 of IPC. 2. In support of the petition, petitioner has contended that he is innocent of the offences alleged. The crime registered and charge sheet filed against the petitioner is - 3 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 illegal, perverse, and obnoxious. The petitioner is put to unnecessary hardship and inconvenience. The concerned police have not investigated the matter properly. Petitioner is a owner/purchaser of the site from one D.Rangappa. He has nothing to do with the fabrication of documents. He was sanctioned loan by the bank only after getting the legal opinion. None of these ingredients are attracted. Due to ill health, the petitioner was not able to pay the installments. Later he has cleared the loan with up-to-date interest and the bank has also issued No due certificate. In the above facts and circumstances, continuation of the proceeding would amount to abuse of the process of the Court and hence the petition. 3. On the other hand learned High Court Government Pleader representing respondent No.1/State as well as learned counsel representing respondent No.2 submit that the petitioner applied for loan as principal borrower and offered accused No.2 Venugopal as surety. Petitioner as purchaser offered sale deed executed by - 4 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 D.Rangappa and other papers as security for the said loan. He was sanctioned loan of Rs.8,50,000/-. A mortgage was created on the said property as a security for the said loan. Later petitioner failed to pay the installments. Hence, arbitration proceedings were initiated. 4. It is further submitted that one Chandra Mohan and Nagaveni also borrowed loan from the said bank and became defaulters and suit for recovery was filed. In the meanwhile, the bank officials came to know that Chandramohan and Nagaveni have produced concocted documents. While Khata of the surrounding properties were verified, it was found that petitioner is not the owner of the site and on the other hand based on fake documents, he has secured loan. Even the bank officials were not able to trace the petitioner. As on 31.01.2011, a total sum of Rs.11,85,962/- was due from the petitioner. Petitioner along with surety G.L.Venugopal and D.Rangappa, the vendor of petitioner had cheated the - 5 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 bank. Accordingly, complaint is filed. After conducting detailed investigation, charge sheet is filed against all the persons including the petitioner. There is prima facie made out against the petitioner. Prosecution is required to be given opportunity to prove the allegations and pray to dismiss the petition. 5. Heard arguments and perused the record. 6. Thus, the specific allegations against the petitioner and other accused are that they concocted documents and on the basis of it availed loan of Rs.8,50,000/- and became defaulter. When the bank in connection with some other case also verified the documents on the basis of which petitioner availed loan, it came to know that the documents are concocted for the purpose of availing loan. After conducting detailed investigation, the concerned police filed charge sheet against all the persons, including the petitioner. - 6 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 7. Learned counsel for petitioner submit that after the charge sheet is filed, petitioner has repaid the entire loan along with the interest and the bank has issued no objection certificate as per Annexure-D. He would further submit that in similar cases, in respect of which Crl.P.Nos.7898/2023 c/w 5934/2023 were filed, the bank has settled the dispute and filed affidavit stating that it has no objections to quash the criminal proceedings and based on the same, the Court has quashed the criminal proceedings. This case is also covered by the said order. Learned counsel representing respondent No.2 bank admit the fact that already entire loan along with the interest is paid and no objection certificate is issued, as per Annexure-D. 8. In the light of the fact that in similar cases, the bank has settled the dispute by filing affidavit stating that it has no objection to quash the criminal proceedings, this Court is of the considered opinion that this petitioner is - 7 - HC-KAR NC: 2025:KHC:31042 CRL.P No. 197 of 2020 also entitled for the same benefit and accordingly, the following: ORDER (i) Petition filed by Petitioner/accused No.1 under Section 482 Cr.P.C is hereby allowed. (ii) The criminal proceedings initiated against the petitioner/accused No.1 in C.C.No.13473/2013 on the file of a Additional Chief Metropolitan Magistrate, Bengaluru, for the offences punishable under sections 467, 468, 471, 420, 120B r/w Section 34 of IPC is quashed. (iii) The Registry is directed to send a copy of this order to the trial Court through e-mail. Sd/- (J.M.KHAZI) JUDGE RR List No.: 1 Sl No.: 34