- 1 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN CRIMINAL PETITION NO. 9458 OF 2021 BETWEEN: 1. MR RAGHAV HEGDE, S/O MR.NARASIMHA HEGDE, AGED 47 YEARS, RESIDING AT: NO.57/1, 7TH MAIN, 4TH BLOCK, BSK III STAGE, BANGALORE KARNATAKA, INDIA. PIN-560 085. FORMER: AUTHORISED SIGNATORY OF SIVAN AND COMPANY 23/2, COFFEE DAY SQUARE VITTAL MALLYA ROAD, BANGALORE-560 001 KARNATAKA, INDIA. 2. MR DEEKSHITH MALLE GOWDA KODUVALLI, S/O LATE MALLE GOWDA K.S., AGED ABOUT 49 YEARS, RESIDING AT: G-401, SLV SPLENDOUR, HARINAGAR CROSS, KONANKUNTE AMURTHNAGAR ROAD, BANGALORE, KARNATAKA INDIA, Digitally signed by GEETHA P G Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 FORMER: AUTHORISED SIGNATORY OF SIVAN AND COMPANY 23/2, COFFEE DAY SQUARE VITTAL MALLYA ROAD, BANGALORE-560 001, KARNATAKA, INDIA. …PETITIONERS (BY SRI. BIBHAS V KITTOR.,ADVOCATE FOR SRI.N.K.DILIP.,ADVOCATE (VC)) AND: 1. M/S SHRINATHJI COMPANY, REPRESENTED BY ITS PROPRIETOR, MR.RAJESH M BHATIA, NO.104, JALA CHAMBERS, 1ST FLOOR, KUMARAKRUPA ROAD, BANGALORE(560001) REPRESENTED BY HIS SPA HOLDER, MR.J.NARAYANAMURTHY, S/O OF MR JAYARAM NAIDU P, AGED ABOUT 45 YEARS. …RESPONDENT (BY SRI.N K DILIP.,ADVOCATE) THIS CRL.PETITION IS FILED U/S.482 OF CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONBLE COURT MAY BE PLEASED TO QUASH AND SET ASIDE THE COMPLAINT BEARING C.C.NO.5025/2021 AS PER ANNEXURE-A FILED BEFORE THE LEARNED XV ACMM, BANGALORE AND SET ASIDE THE SUMMONS ISSUED TO THE PETITIONERS PER ANNEXURE-B, DATED 04.03.2021, BY THE LEARNED XV ACMM, - 3 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 BANGALORE AND CONSEQUENTLY ALLOW THE CRL.PETITION AND ETC., THIS PETITION, COMING ON FOR ADMISSION THROUGH VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN ORAL ORDER The criminal petition is filed with the following prayers: "a. Call for entire records in Complaint bearing C.C.No.5025/2021 on the file of the Learned XV ACMM Court at Bangalore; b. Quash and Set aside the Complaint bearing C.C.NO.5025/2021 per Annexure A filed before the Learned XV ACMM Court at Bangalore and Set aside the Summons issued to the Petitioners per Annexure B dated 04.03.2021 by the Learned XV ACMM Court at Bangalore and consequentially allow the Criminal Petition; c. Award the costs of this Petition to the Petitioner; and - 4 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 d. Grant such other and further reliefs as this Hon'ble Court may deem fit to grant in the facts and circumstances of the case in the interest of justice and equity." 2. Inspite of service of notice, the respondent has remained absent. 3. The respondent has filed PCR No.1482/2020, making one Sivan and Company and the petitioners herein as the accused. The allegation made by the respondent is that in pursuance of a legally dischargeable debt owed by Sivan and Company to him, post-dated cheques belonging to Sivan and Company were signed by the petitioners herein, who are its authorized signatories and issued in favour of the respondent. When the same was presented to the bank, they have been dishonoured. Hence, PCR No.1482/2020 has been filed before the XV Additional Chief Metropolitan Magistrate, Bangalore. After recording the sworn statement, cognizance has been taken by the trial Court and the following order has been passed: - 5 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 "Register a case against the accused in Register No.III for the offence punishable U/s.138 of N.I.Act. Issue process to the accused by hand and by speed post or R.P.A.D., if copy of the complaint, sworn statement, documents and list of witness and PF & postage is furnished by the complainant. Call on 22.04.2021." 4. Based on the said order, C.C.No.5025/2021 has been registered against the petitioners. Aggrieved by the same, the present criminal petition has been filed. 5. The case of the petitioners is that, Sivan and Company was the sole proprietary concern of one Mr.V.G.Siddhartha, who died on 31.07.2019. The petitioners herein were employees of the said Mr.V.G.Siddhartha and were authorized to issue cheques on behalf of the proprietary concern of late V.G.Siddhartha. In the course of business transaction, they have issued post-dated cheques in favour of the respondent herein. It is submitted that they personally do not owe any money to the respondent and there is no - 6 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 legally dischargeable debt to be satisfied by them to the respondent. However, before the date mentioned in the post-dated cheques, the said V.G.Siddhartha died on 31.07.2019. The post-dated cheques are dated 05.08.2019, 05.09.2019, 05.10.2019, 05.11.2019 and 05.12.2019. After the death of V.G.Siddhartha, his account in the bank has been suspended. In spite of bringing to the notice of the respondent about the death of V.G.Siddhartha, the respondent herein went ahead and presented the cheques to the bank, which have been dishonoured. It is submitted that the aforementioned facts do not constitute an offence against the petitioners herein under Section 138 of the Negotiable Instruments Act (for short, 'the N.I.Act'). It is further submitted that the course open for the respondent is to proceed against the legal heirs, who succeed to the estate of V.G.Siddhartha and recover any amounts due from his assets. 6. The petitioners have produced a copy of the certificate issued by the Chartered Accountant showing - 7 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 that Sivan and Company was the sole proprietary concern of V.G.Siddhartha. They have also produced the death certificate of V.G.Siddhartha. They have also produced a letter from Corporation Bank showing that the account has been suspended since the death of V.G.Siddhartha, who was the sole proprietor of M/s. Sivan and Company. The said documents prove that the Sivan and Company was the sole proprietary concern of V.G.Siddhartha and he died on 31.07.2019. The complaint filed by the respondent shows that the petitioners herein were authorized signatories of Sivan and Company. The complaint does not clarify whether the said Sivan and Company is a proprietary concern or a registered company. It also reveals that the post-dated cheques were issued with a due date being after the death of V.G.Siddhartha and when the same have been presented to the bank, they have been dishonoured. 7. Admittedly, it is Sivan and Company, which is the sole proprietary concern of V.G.Siddhartha, that owes - 8 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 money to the respondent. The petitioners herein do not owe any money to the respondent in their personal capacity. The Sivan and Company is a proprietary concern. It is not a company registered under the Provisions of the Companies Act. Thus, the provision of Section 141 of the N.I.Act does not apply in the present petition. Section 138 of the N.I.Act pertains to dishonour of a cheque when issued by a person in discharge of a legally dischargeable debt. In the instant case, admittedly, the petitioners are not liable to the respondent. 8. Further, the operation of the bank account after the death of V.G.Siddhartha in the instant case does not arise. 9. For the aforementioned reasons, C.C.No.5025/2021, on the file of XV Addl.Chief Metropolitan Magistrate, Bangalore cannot be maintained as against the petitioners herein and the Criminal Petition deserves to be allowed. Hence, the following: - 9 - HC-KAR NC: 2025:KHC:40299 CRL.P No. 9458 of 2021 ORDER i. The Criminal Petition is hereby allowed. ii. The proceedings in C.C.No.5025/2021 (PCR No.1482/2020), pending on the file of XV Addl.Chief Metropolitan Magistrate, Bangalore against the petitioners herein, stand quashed. Sd/- (M.I.ARUN) JUDGE CH List No.: 1 Sl No.: 19