- 1 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 20TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY CRIMINAL PETITION NO. 100472 OF 2025 (482(CR.PC)/528(BNSS)) BETWEEN: 1. SRI. RAVI N. @ RAVI S/O. B. NAGARAJ, AGE. 36 YEARS, OCC. TEMPORARY EMPLOYEE, R/O. W NO.7, NEAR RAM MANDIR, BAPUJI NAGAR, DIST. BALLARI-583 101. 2. SMT. BHARATHI W/O. RAVI N., AGE. 31 YEARS, OCC. PROPRIETOR OF MANJULA ENTERPRISES, R/O. W.NO.7, D.NO.75, MAIN ROAD, NEAR RAM TEMPLE, BAPUJI NAGAR, DIST. BALLARI-583 101. … PETITIONERS (BY SRI. RAJA RAGHAVENDRA NAIK, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, THROUGH BRUCEPET P.S., BALLARI DISTRICT, R/BY ITS PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENCH AT DHARWAD. 2. CHIEF MANAGER, PADMA SRINIVAS REDDY M. S/O. THIMMA REDDY M., AGE. 40 YEARS, BANK OF BARODA, BALLARI BRANCH VADDARABANDE, DIST. BALLARI-583 101. … RESPONDENTS (BY SMT. GIRIJA S. HIREMATH, HCGP FOR R1; SRI. MALLIKARJUN S. HIREMATH, ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. (UNDER SECTION 528 OF BNSS), PRAYING TO QUASH THE COMPLAINT AND FIR REGISTERED AGAINST PETITIONERS/ACCUSED NO.1 AND 2 BEFORE BRUCEPET P.S. CRIME NO.98/2024 FOR THE RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 OFFENCES PUNISHABLE UNDER SECTIONS 420, 465, 468, 471 R/W 34 OF IPC, PENDING IN THE COURT OF IST ADDITIONAL CIVIL JUDGE, JUNIOR DIVISION AND JMFC COURT, BALLARI, IN THE INTEREST OF JUSTICE. THIS PETITION, COMING ON FOR ORDERS THIS DAY, ORDER IS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY) 1. Accused Nos.1 and 2 in Crime No.98 of 2024 registered by Brucepet Police Station, Ballari for offences punishable under Sections 420, 435, 468, 471 read with Section 34 of the IPC, are before this Court under Section 482 of Cr.P.C. read with Section 528 of BNSS 2023, with a prayer to quash the entire proceedings in the aforesaid case, as against them. 2. Heard learned counsel appearing for the parties. 3. Learned counsel for the petitioners submits that loan of ₹4,96,000/- was borrowed by the petitioners for the purpose of purchasing sewing machines in the proposed Garment Factory, which the petitioners intended to setup. The entire loan amount borrowed was repaid with interest on 16.08.2023 itself. FIR in the present case is registered - 3 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 on 10.04.2024 for the alleged offences, much after the petitioners’ had repaid the entire loan amount and were discharged by the Bank. He accordingly prays to allow the petition. 4. Per contra, learned HCGP and the learned counsel for respondent No.2 have opposed the petition. 5. Learned counsel for respondent No.2 submits that loan was sanctioned on a subsidized rate of interest and the loan amount which was released to the petitioners was not utilized for the purpose for which it was sanctioned. Therefore, criminal case has been registered against them. He however does not dispute that the entire loan amount was repaid by the petitioners on 16.08.2023 itself. 6. In the first information dated 10.04.2024, which is submitted by respondent No.2, it is alleged that accused Nos.2 to 11 named in the FIR had availed loans from the Bank under the Prime Minister's Rojgar Scheme, at a subsidized rate of interest for the purpose of purchase of - 4 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 sewing machine. Subsequently, it came to the notice of the Bank that the sewing machines were not purchased by the borrowers and it is under these circumstances the authorized representative of the Bank had approached the police alleging that the scheme was misused by the accused persons and thereby they had cheated the Bank as well as the State. 7. It is not in dispute that the entire amount of loan borrowed by accused No.2 has been repaid by her with interest to the Bank as on 16.08.2020 itself. Accused No.1 is the husband of accused No.2 and it appears that he was earlier working as a temporary employee in the Bank for a short period. There is no specific allegation as against accused No.1 and undisputedly he is not the borrower of loan from the Bank. First information is submitted in the present case on 10.04.2024, which is after a lapse of nearly 8 months from the date accused No.2 had repaid the entire loan borrowed by her from the Bank with interest. Since accused No.2 had repaid the entire loan borrowed with - 5 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 interest, much prior to the Bank approaching the police, it cannot be said that she had any intention to cheat the Bank. 8. Merely for the reason that the loan borrowed was not utilized for the purpose for which it was borrowed, it cannot be said that the borrower had intention to cheat the Bank when the material on record would go to show that the loan borrowed was repaid with interest. The loan was availed for the purpose of purchasing sewing machines to setup a Garment Factory and according to the learned counsel for the petitioners, since it was not found feasible to start the Garment Factory, the borrower had decided to repay the amount with interest, and if that is so, it cannot be said that the loan was borrowed with an intention to cheat. Criminal proceedings cannot be lodged on any assumption or presumption and therefore, I am of the opinion that the prayer made by the petitioners for quashing the impugned criminal proceedings as against them needs to be granted. Accordingly, the following: - 6 - HC-KAR NC: 2025:KHC-D:10520 CRL.P No. 100472 of 2025 ORDER i. Criminal Petition is allowed. ii. The entire proceedings in Crime No.98 of 2024 registered by Brucepet Police Station, Ballari for offences punishable under Section 420, 435, 468, 471 read with Section 34 of the IPC, is quashed as against the petitioners are concerned. Sd/- (S.VISHWAJITH SHETTY) JUDGE VNP, KGK CT:BCK LIST NO.: 1 SL NO.: 32