- 1 - HC-KAR NC: 2025:KHC-D:10471 CRL.P No. 103095 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY CRIMINAL PETITION NO. 103095 OF 2024 (482(CR.PC)/528(BNSS)) BETWEEN: 1. DR. SHANKARLING S/O NARAYANAPPA GOUDAR, AGE. 49 YEARS, OCC. PRESIDENT OF EDUCATION SOCIETY, SHREE GURUKOLLINATHESHWAR EDUCATION AND RURAL DEVELOPMENT SOCIETY KERUR (PRESIDENT), R/O. NEAR M.R. HIREMATH HIGH SCHOOL, KERUR, TQ: BADAMI, DIST. BAGALKOT-587 206. 2. SMT. SHAKUNTALA W/O SHANKARLING GOUDAR, AGE. 45 YEARS, OCC. SECRETARY, R/O. NEAR M.R. HIREMATH HIGH SCHOOL, KERUR, TQ. BADAMI, DIST. BAGALKOT-587 206. … PETITIONERS (BY SRI. PAVAN B. DODDATTI, ADVOCATE) AND: SHREE SHIVASHAKTI SOUHARDA PATTEN SAHAKARI LTD., BAGALKOT, BRANCH KERUR, TALUK BADAMI, DIST. BAGALKOT, R/BY ITS MANAGER, SHIR SHANKRAPPA RAMANNA KATAGERI, AGE. 46 YEARS, OCC. MANAGER, R/O. KERUR, TQ. BADAMI, DIST. BAGALKOT-587 206. … RESPONDENT (BY SRI. JAGADISH PATIL, ADVOCATE) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. (UNDER SECTION 528 OF BNSS), PRAYING TO QUASH THE ENTIRE CRIMINAL PROCEEDINGS PENDING BEFORE THE COURT OF ADDL. CIVIL JUDGE AND JMFC, BADAMI, SITTING ITINERARY COURT AT KERUR, IN C.C. NO.281/2019 REGISTERED FOR OFFENCE PUNISHABLE UNDER SECTION 138 OF N.I. ACT, IN SO FAR AS PETITIONERS/ACCUSED NO.1 AND 2 ARE CONCERNED, IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR FURTHER HEARING THIS DAY, ORDER IS MADE THEREIN AS UNDER: RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:10471 CRL.P No. 103095 of 2024 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY) Accused Nos.1 and 2 are before this Court in this petition filed under Section 482 of Cr.P.C., with a prayer to quash the entire proceedings in C.C. No.281/2019 pending before the Court of Additional Civil Judge and JMFC, Badami sitting at Kerur, registered for offence punishable under Section 138 of the Negotiable Instruments Act (N.I. Act). 2. Heard the learned counsel for the parties. 3. The respondent herein had filed a private complaint in PCR No.10/2017 before the Court of Principal Civil Judge and JMFC, Badami, against petitioners and seven others for offence punishable under Section 138 of N.I. Act. After the learned Magistrate had taken cognizance of the alleged offence, case was registered against petitioners and other accused in C.C. No.281/2019 and being aggrieved by the same, petitioners, who are - 3 - HC-KAR NC: 2025:KHC-D:10471 CRL.P No. 103095 of 2024 arrayed as accused Nos.1 and 2 in C.C. No.281/2019 are before this Court. 4. Learned counsel for the petitioners submits that petitioners herein are the President and Secretary of the Education Society known as Shree Gurukallinatheshwar Education and Rural Development Society, Kerur. The cheque in question is drawn on the bank account of the aforesaid society. In the absence of arraying the society as a party to the impugned criminal proceedings, the petitioners who are the office bearers of the society cannot be prosecuted. 5. Per contra, learned counsel appearing for the respondent, who has opposed the petition, however, does not dispute that the cheque in question has been drawn on the bank account which stands in the name of the society. 6. The drawer of the cheuqe is an association registered under the provisions of the Karnataka Societies Registration Act, 1960 and it has a governing body elected - 4 - HC-KAR NC: 2025:KHC-D:10471 CRL.P No. 103095 of 2024 amongst its members. Company for the purpose of Section 141 of N.I. Act includes an association of individuals. Therefore, the drawer of the cheque which is an Education Society can be safely considered as Company for the purpose of Section 141 of N.I. Act. It is not in dispute that the petitioners herein are the office bearers of the Education Society from whose account the cheque is issued. The said cheque has been dishonoured for insufficient funds in the bank account of the Education Society. The proceedings initiated without making the said society as a party to the proceedings cannot be maintained in view of the judgment of the Hon'ble Supreme Court in the case of Himanshu vs. B. Shivamurthy and another1 and in the case of Aneeta Hada vs. Godfather Travels and Tours Private Limited2. The petitioners are being held vicariously liable for the act of the society and therefore, in the absence of the society being made party to the impugned 1 (2019) 3 SCC 797 2 (2012) 5 SCC 661 - 5 - HC-KAR NC: 2025:KHC-D:10471 CRL.P No. 103095 of 2024 proceedings, the proceedings cannot be permitted to be continued as against the petitioners. Accordingly, the following: ORDER Criminal Petition is allowed. The entire proceedings in C.C. No.281/2019 pending before the Court of Additional Civil Judge and JMFC, Badami sitting at Kerur, registered for offence punishable under Section 138 of the Negotiable Instruments Act against the petitioners is hereby quashed. Sd/- (S.VISHWAJITH SHETTY) JUDGE RSH / CT:BCK LIST NO.: 1 SL NO.: 98