- 1 - NC: 2025:KHC-D:46 CRL.P No. 103114 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 6TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 103114 OF 2024 (482(CR.PC)/528(BNSS)) BETWEEN: SHRISHAILAYYA S/O DUNDAYYA SHINDOLIMATH, AGE: 46 YEARS, OCC: AGRICULTURE, R/O: NEAR OLD BHOSALE FACTORY, MALLAPUR PG., GOKAK (RURAL), TQ: GOKAK, DIST: BELAGAVI-591 306. … PETITIONER (BY SRI. KIRANKUMAR CHATTIMATH, ADVOCATE) AND: ASHWAT S/O SHANKAR SHETTY, AGE: 36 YEARS, OCC: BUSINESS, R/O: MAHANTESH NAGAR, GHATAPRABHA, TQ: GOKAK, DIST: BELAGAVI-591 306. … RESPONDENT (BY SRI. S.A. SANDUR, ADVOCATE) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), PRAYING TO QUASH THE ENTIRE PROCEEDINGS PENDING BEFORE THE ADDL. CIVIL JUDGE AND JMFC., GOKAK IN CC NO.6049/2023 FOR THE OFFENCE P/U/SEC.138 OF N.I. ACT REGISTERED IN P.C.R.NO.220/2023 IN SO FAR AS PETITIONER/ACCUSED NO.5 AS NULL AND VOID. THIS PETITION IS COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ASHPAK KASHIMSA MALAGALADINNI Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.09 12:51:12 +0530 - 2 - NC: 2025:KHC-D:46 CRL.P No. 103114 of 2024 ORAL ORDER 1. The petitioner challenges the cognizance taken by the learned Magistrate for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”). 2. A private complaint was filed under Section 200 of the Code of Criminal Procedure, 1973 (Cr.P.C.), alleging that the cheque issued by the company in favor of the complainant was dishonored upon presentation for want of funds. The learned Magistrate, after recording the sworn statement of the complainant, took cognizance of the offence under Section 138 of the NI Act and issued summons to the accused. Aggrieved by this, the petitioner/accused No.5 has approached this Court. 3. Heard the learned counsel for the petitioner and the learned counsel for the respondent. 4. The cheque in question was issued on 01.06.2023. The petitioner, who was previously a Director of the company, ceased to hold the position with effect from 09.03.2022, as evidenced by Form DIR-12 issued by the Registrar of Companies. This fact has not been controverted by the complainant. Therefore, as the petitioner was no longer a Director of the company at the time the cheque was issued, he cannot be held vicariously liable under Section 141 of the NI Act, which imposes liability on persons in charge of, and responsible for, the conduct of the company’s business at the time of the offence. - 3 - NC: 2025:KHC-D:46 CRL.P No. 103114 of 2024 5. In view of the above, the continuation of criminal proceedings against the petitioner amounts to an abuse of the process of law. Accordingly, I proceed to pass the following: ORDER a) The criminal petition is allowed. b) The impugned proceedings in CC No.6049/2023 pending on the file of learned Addl. Civil Judge and JMFC, Gokak, insofar it relates to petitioner/accused No.5, is hereby quashed. c) The trial Court, to proceed against the other accused without being influenced by any observation made by this Court in this order . Sd/- (HEMANT CHANDANGOUDAR) JUDGE JTR CT:BCK LIST NO.: 1 SL NO.: 38