- 1 - NC: 2025:KHC-D:1583 CRL.P No. 103421 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 27TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 103421 OF 2023 (482(Cr.PC)/528(BNSS)) BETWEEN: 1. SHRI. AJITKUMAR S/O. SHIVAGOUDA HALASODE AGE. 62 YEARS, OCC. PENSIONER, R/O. PLOT NO.94, NEAR DURGA TEMPLE, VADDAR GALLI, HINDWADI BELAGAVI, TQ AND DIST: BELAGAVI-591103. 2. SHRI. SHIDHAR S/O. BASAVANNEPPA SARADAR AGE. 45 YEARS, OCC. PANCHAYAT DEVELOPMENT OFFICER, R/O. H.NO.03, GOPAL ARCADE, GURUWAR PETHA, TILAKWADI, BELAGAVI, TQ AND DIST. BELAGAVI-591103. 3. SHRI. CHANDRAKANT S/O. DATTOBA CHAVAN AGE. 61 YEARS, OCC. PENSIONER, R/O. MIG -2, H.NO.677, KHB COLONY, BENAKAN HALLI, BELAGVI, TQ AND DIST. BELAGAVI-591103. …PETITIONERS (BY SRI. SANTOSH B.MALAGOUDAR, ADVOCATE) AND: 1. THE STATE OF KARNATAKA THROUGH PSI KHADEBAZAR POLICE STATION, REPTD BY STATE PUBLIC PROSECUTOR, S.P.P OFFICE, HIGH COURT OF KARNATAKA, DHARWAD BENCH-580011. 2. SMT. PADMAJA DARIGOUDA PATIL THE EXECUTIVE OFFICER, OFFICE OF THE TALUK PANCHAYAT, BELAGAVI, TAL. BELAGAVI, DIST. BELAGAVI-591103. …RESPONDENTS (BY SRI. ASHOK T.KATTIMANI, ADDL. GOVT. ADVOCATE) B K MAHENDRAKUMAR Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.29 15:27:27 +0530 - 2 - NC: 2025:KHC-D:1583 CRL.P No. 103421 of 2023 THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C., PRAYING TO ALLOW THE PRESENT CRIMINAL PETITION AND SET ASIDE THE ORDER DATED 27.10.2023 IN CC NO.2512/2023 PASSED BY THE COURT OF JMFC III COURT, BELAGAVI IN RESPECT OF KHADEBAZAR P.S. CRIME NO.42/2019 FOR THE OFFENCES PUNISHABLE U/S 406, 408, 409 AND 420 OF IPC IN SO FAR AS PRESENT PETITIONERS/ACCUSED NO.2 TO 4 ARE CONCERNED AND QUASH THE ENTIRE PROCEEDINGS IN CC NO.2512/2023 IN RESPECT OF KHADEBAZAR P.S. CRIME NO. 42/2019 FOR THE OFFENCES PUNISHABLE U/S 406, 408, 409 AND 420 OF IPC, PENDING ON THE FILE OF JMFC III COURT, BELAGAVI, IN SO FAR AS PETITIONERS/ACCUSED NO.2 TO 4 ARE CONCERNED. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER The petitioners – accused Nos.2 to 4 who are facing trial for the offences punishable under Sections 406, 408, 409 and 420 of IPC, are before this Court. 2. The case of the prosecution is that the Zilla Panchat Belagavi during period April, 2014 to March, 2016 have allocated funds to Taluka Panchat, Belagavi for the paymentof elected gram panchat members in two installations a sum of Rs.11,37,300/- on 19.10.2015 and a sum of Rs.1,01,32,800/- on 28.4.2016 as such a total of Rs.1,12,70,100/- was allocated. It is further stated that, from 25.11.2015 to 29.12.2017, accused No.2 – Ajitkumar Shivagouda Halsode worked as Executive Officer of Taluka Panchayat Belagavi and with an intention to misuse the honorarium for his own benefits has collaborated with accused No.1 Shri Vasanth Maralusiddappa Dindur working on contract basis in - 3 - NC: 2025:KHC-D:1583 CRL.P No. 103421 of 2023 Taluka Panchat Office, Belagavi and accused No.3 Shri Shridhar Basavenappa Sardar who worked as PDO of Taluka Panchayat Belagavi who worked during the period of 29.10.2015 to 1.8.2016. The honorarium of elected members of Gram Panchat which being a financial matter and as such without handing over the same to the finance section was handed over to accused No.1 and the account for the distribution of the honorarium was maintained with IDBI Bank Samadevigalli, bearing Account No.0101104000246149 and the said account already had an amount of Rs.11,37,300/- and with an intention to misappropriate the amount a different account was opened in the same branch with account bearing No.0101104000250416 and was only operated by the executive officer whereas the said account had to be operated by both the Executive Officer and the Assistant Accountant and an amount of Rs.1,01,32,800/- of honorarium was deposited. 3. The allegation is that the petitioners – officers of the Taluk Panchayat in collaboration with others misappropriated the public funds. Under Section 21 of IPC, the term ‘public servant’ includes individuals in the service or pay of a local authority, which covers the petitioners given that the Taluk Panchayt operates under the Karnataka Gram Swaraj and Panchayat Raj Act, 1993. Consequently, the petitioners qualify as `public servants’. 4. In the instant case, sanction to prosecute the petitioners under Section 197 of Cr.PC was rejected by the Chief Executive Officer, Zilla Panchayat, Belgavi, vide order dated 28.12.2022. However, the competent Authority has rejected the - 4 - NC: 2025:KHC-D:1583 CRL.P No. 103421 of 2023 sanction to prosecution, and as such, the continuation of criminal proceedings would be an abuse of process of law. Accordingly, I pass the following: ORDER i) The petition stands allowed. ii) The impugned proceedings in CC No.2512/2023 pending on the file of the learned JMFC III Court, Belagavi insofar as it relates to the petitioners – accused Nos.2 to 4 is hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE BKM Ct:vh List No.: 3 Sl No.: 2