- 1 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MS. JUSTICE J.M.KHAZI CRIMINAL PETITION NO. 7342 OF 2022 (482(Cr.PC) / 528(BNSS)) BETWEEN: RANJAN SATISH S/O S P SREEDHARAN AGED 53 YEARS R/O VILLA NO. 22, PRESTIGE GLENWOOD BUDIGERE CROSS ROAD, MANDUR BANGALORE - 560049. …PETITIONER (BY SRI.RAKSHITH KUMAR, ADVOCATE) AND: 1. STATE BY KUVEMPUNAGAR P.S. MYSORE CITY, MYSORE-570023 2. MOHAN.N S/O NARASIMAIAH AGED ABOUT 43 YEARS, NO.95, 3RD STAGE, KUVEMPUNAGAR, MYSORE-570023 …RESPONDENTS (BY SMT.N.ANITHA GIRISH, HCGP FOR R1; SRI.K.T.VASUDEVA IYENGAR, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING TO QUASH THE ENTIRE Digitally signed by REKHA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 PROCEEDINGS INITIATED AGAINST THE PETITIONER IN CR.NO.41/2022 OF KUVEMPU NAGAR POLICE STATION FOR THE OFFENCE P/U/S 420 OF IPC. THIS PETITION, COMING ON FOR DICTATING ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MS. JUSTICE J.M.KHAZI ORAL ORDER Petitioner who is the sole accused has filed this petition under Section 482 of the Code of Criminal Procedure, to quash the criminal proceedings initiated against him in CR.No.41/2022 of Kuvempunagar PS, Mysuru, for the offence punishable under Section 420 of IPC. 2. In support of the petition, petitioner has contended that the mere reading of the complaint does not disclose commission of the alleged offence. It is motivated vindictive and vexatious. In order to settle a civil dispute respondent No.2 has initiated malicious prosecution. Civil dispute is being given a colour of criminality. The - 3 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 correspondence exchange between the parties clearly indicate that petitioner had no criminal intend. 2.1. The petitioner is running business in legal manner. He is IIM Graduate. He invited business partners who are supposed to visit customs and promote the business. The business partner is required to deposit of Rs.2 lakhs as caution deposit towards software license, the access of which would be given to him. The EMD is refundable as per the terms of the agreement. Respondent No.2 has received Rs.10,000/- p.m as per the agreement from January to April 2021. He expressed his desire to resign and stop working for the company, as he was not able to perform. However, he refused to return the software and other items provided for business promotion which is confidential. Petitioner directed him to return the company property and submit resignation letter. Only on 31.07.2021, respondent No.2 has sent a message on Watsapp to cancel the agreement. At no point of time respondent No.2 was cheated by the petitioner. The - 4 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 agreement executed between them provides for remedy under the arbitration clause. Instead of opting for the same, respondent No.2 has filed the complaint. The continuation of the criminal proceedings would amount of abuse of the process of the Court and hence, the petition. 3. In support of his arguments, learned counsel for petitioner has relied upon the following decisions: (i) Lalith Chaturvedi and Ors. Vs. State of Uttar Pradesh (Lalith Chaturvedi)1 (ii) Radheyshyam and Ors. Vs. State of Rajasthan and Anr. (Radheyshyam)2 (iii) Naresh Kumar and Anr. Vs. State of Karnataka and Anr. (Naresh Kumar)3 (iv) Rikhab Birani and Anr. State of Uttar Pradesh and Anr. (Rikhab Birani)4 4. On the other hand learned High Court Government Pleader for respondent No.1/State and learned counsel for respondent No.2 would submit that during October 2020, 1 SLP(Crl)No.13485/2023 Dt:06.02.2024 2 Crl.A.No.3020/2024[SLP(Crl)No.13675/2023] 3 SLP(Crl)No.1570/2021 Dt:12.03.2024 4 SLP(Crl)No.8592/2024 Dt:16.04.2025 - 5 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 respondent No.2 was unemployed. He came across an advertisement and became partner of the company run by petitioner and invested Rs.2 lakhs. In this regard, on 10.12.2020, Reshme Chinnaswamy, Operational Manager, Karnataka met him at Mylari Hotel, Kuvempunagar, Mysuru and took his signature to the agreement. Later copy of the duly executed agreement was furnished to him on 23.12.2020 through speed post. 4.1 Thereafter, he never met any of the employees of the company. They used to converse and conduct meeting through Google meet. As per the agreement, he has transferred Rs.2 lakhs to A/c.No.038228306586 of the company from his account. In fact several persons have invested in the said company and are cheated. Even though from January 2021 to April 2021, he was paid Rs.10,000/-p.m, later no payments were made. The terms of the agreement are violated. He has brought this fact to the notice of the cyber police on 13.09.2021, without any result. Therefore, he is constrained to file the complaint. - 6 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 Based on the complaint, case is registered in Cr.No.41/2022 for the offence punishable under Section 420 IPC and investigation is taken up. At this stage, petitioner has filed this petition and secured interim order. Matter requires detailed investigation and pray to dismiss the petition. 5. Heard arguments and perused the record. 6. From the material placed on record, it is evident that petitioner is running a company by name Wearlink Pitstop Solutions Private Limited, which has developed a software application to cater to the need of fuel industry. Intending to set up a network of business partners for promoting software application by name Oileum Fuel Solutions across India, he has called applications for business partners. Respondent No.2 is one such partner appointed for Mysuru District. As per the terms of the contract, the business partner is required to deposit Rs.2 lakhs, which is interest free EMD as a caution deposit towards software licenses. The entire EMD is refundable - 7 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 after 3 years, 50% after 2 years. However, no refund is applicable before expiry of 2 years. The business partner is also entitled for Rs.10,000/- p.m. paid as monthly fees till the business partner is effective or till tenure period. The company has agreed to pay a one time sales commission of Rs.2,500/- for every retail outlets signed in with Oleum business partners territory, Rs.50/- per vehicle registered under business partner territory and made minimum fueling quantity as per company's set targets and 5 ps as sale commission against the sales recorded under the retail outlet operated by the business partner. 7. As evident from print out of the message dated 31.07.2021 sent by respondent No.2 to the petitioner, it appears respondent No.2 wanted to withdraw from the partnership and requested for refund of security deposit and offered to return the material furnished to him. He has not produced the reply given by petitioner. As per the terms of the partnership agreement between the petitioner and respondent No.2, the termination of agreement - 8 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 requires 90 days notice in writing and other conditions. Any dispute between them is required to be referred to Arbitration. 8. Thus from the contents of the agreement between the parties, it is a business partnership agreement and not investment made by respondent No.2 with the petitioner expecting return of Rs.10,000/- p.m. The same is subject to the terms and conditions. It is pure civil dispute between the parties which is required to be settled by way of arbitration. Instead of opting for the civil resolution of the dispute, the respondent No.2 has chosen to file the complaint. By complying with the conditions specified in the agreement, he is at liberty to seek refund of the EMD. It is an attempt made by respondent No.2 to give a colour of criminal offence to a civil dispute and therefore, continuation of the criminal proceedings would amount to abuse of the process of the Court and as such liable to be quashed and accordingly, the following: - 9 - HC-KAR NC: 2025:KHC:38992 CRL.P No. 7342 of 2022 ORDER (i) Petition filed by the petitioner/accused under Section 482 Cr.P.C is hereby allowed. (ii) The criminal proceedings in CR.No.41/2022 of Kuvempunagar PS, for the offence punishable under Section 420 of IPC is hereby quashed. Sd/- (J.M.KHAZI) JUDGE RR List No.: 1 Sl No.: 28