- 1 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 11760 OF 2025 BETWEEN: M/S. HAPPY MILK A PROPRIETORSHIP, HAVING ITS REGISTERED OFFICE AT NO.23, 3RD FLOOR, BAHUBALI NAGAR, BENGALURU - 560 013. REPRESENTED BY ITS AUTHORITY SIGNATURE MR. MALLIKARUJUN C.H …PETITIONER (BY SRI. SHANKAR H.S, ADVOCATE) AND: 1. M/S. BANGER TECH PRIVATE LIMITED REGISTERED OFFICE AT 6A2, SATHYAM TOWERS 3, ALIPORE ROAD, KOLKATTA KOCH BIHAR, WEST BENGAL - 700 027, REP. BY ITS DIRECTOR. 2. MR. REIHEM ROY DIRECTOR AT M/S.BANGER TECH PRIVATE LIMITED, OFFICE AT 6A2, SATHYAM TOWERS 3, ALIPORE ROAD, KOLKATTA KOCH BIHAR, WEST BENGAL - 700 027. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 3. MR. EBRAHIM AKBARI, DIRECTOR AT M/S.BANGER TECH PRIVATE LIMITED, REGISTERED OFFICE AT 6A2, SATHYAM TOWERS 3, ALIPORE ROAD, KOLKATTA KOCH BIHAR, WEST BENGAL - 700 027. 4. MR. AAKASH AGRAWAL, DIRECTOR AT M/S.BANGER TECH PRIVATE LIMITED, REGISTERED OFFICE AT 6A2, SATHYAM TOWERS 3, ALIPORE ROAD, KOLKATTA KOCH BIHAR, WEST BENGAL - 700 027. AND ALSO AT NO. 330, DOODHWALA, 3RD CROSS, 7TH MAIN, DOMLUR, BENGALURU - 560 071. …RESPONDENTS THIS CRL.P IS FILED U/S 482 OF CR.PC (FILED U/S 528 BNSS) PRAYING TO SET ASIDE THE ORDER DATED 03.05.2025 PASSED BY THE IV ADDL. SMALL CAUSES JUDGE AND ADDL. CJM, MAGISTRATE, BENGALURU, IN CC.NO.1014/2021 (ANNEXURE-A), WHEREBY THE COMPLAINT FILED BY THE PETITIONER U/S. 200 OF THE CODE OF CRIMINAL PROCEDURE, 1973, WAS DISMISSED FOR NON-PROSECUTION, AND CONSEQUENTLY RESTORE THE SAID COMPLAINT TO ITS ORIGINAL IN ACCORDANCE WITH LAW. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM - 3 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 ORAL ORDER The petitioner/complainant is assailing the order dated 03.05.2025 of the learned Magistrate passed in C.C.No.1014/2021 in dismissing the complaint for non prosecution. 2. The petitioner/complainant has instituted a private complaint under Section 200 of the Code of Criminal Procedure for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The complaint proceeds on the allegation that the accused, towards discharge of a legally enforceable liability, issued a cheque for a sum of Rs.5,00,000/-, which, on presentation, was dishonoured with the bank’s endorsement “payment stopped by drawer.” Aggrieved thereby, and after complying with the statutory requirements under the N.I. Act, the petitioner/complainant lodged the present private complaint. Upon recording of the - 4 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 sworn statement, the learned Magistrate found sufficient grounds to proceed and accordingly issued summons to the accused. 3. However, during the subsequent stages of the proceedings, the learned Magistrate, noticing that the complainant had not taken steps for service of summons despite grant of sufficient opportunities, dismissed the complaint for non-prosecution by holding that the complainant was not interested in pursuing the matter. 4. On an examination of the records, this Court finds that though there has been a certain degree of laxity on the part of the complainant in not diligently prosecuting the matter, the larger perspective cannot be ignored. The offence under Section 138 of the N.I. Act is a statutory offence intended to maintain the sanctity of commercial transactions and to ensure faith in the banking system. A complaint under the - 5 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 N.I. Act is not a matter of mere private grievance but carries with it an element of public policy, as the provision is designed to instill confidence in the efficacy of negotiable instruments. Dismissal of such a complaint at the threshold for non-prosecution, without affording a meaningful opportunity, has the effect of seriously prejudicing the complainant’s right to enforce a legally enforceable debt through the criminal process. 5. This Court is therefore of the view that a more lenient and balanced approach is warranted in such matters. While complainants are expected to diligently prosecute their cases, the courts must also remain mindful that mechanical dismissal of complaints under the N.I. Act on technical grounds of non-prosecution may defeat the very object of the statute. In the facts of the present case, the dismissal has resulted in grave prejudice to the complainant, - 6 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 who has set the criminal law in motion on account of dishonour of a cheque, which prima facie discloses the ingredients of the offence under Section 138 of the N.I. Act. 6. Accordingly, this Court deems it appropriate to interfere with the impugned order and to restore the complaint to file, subject to the condition that the complainant shall hereafter prosecute the complaint diligently and take all necessary steps without any further delay. 7. For the foregoing reasons, this Court passes the following: ORDER i. The criminal petition is hereby allowed; ii. The impugned order dated 03.05.2025 passed by the IV Addl. Small Causes Judge and Addl. Chief Judicial Magistrate, Bengaluru in - 7 - HC-KAR NC: 2025:KHC:32170 CRL.P No. 11760 of 2025 C.C.No.1014/2021 (Annexure-A) is hereby quashed and set aside; iii. The private complaint in C.C.No.1014/2021 is restored to file; iv. The petitioner/complainant is directed to take effective steps to prosecute the complaint on the next date of hearing, failing which the trial court shall be at liberty to proceed in accordance with law. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 40 CT: BHK