- 1 - HC-KAR NC: 2026:KHC:27437 CRL.P No. 575 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI CRIMINAL PETITION NO.575 OF 2021 BETWEEN: SRI INDUDHARA HONNAPURA S/O H G SRIKANTAIAH, AGED ABOUT 66 YEARS, R/AT NO.402, I MAIN, I STANGE, II BLOCK, HBR LAYOUT, BANGALORE - 560 043. …PETITIONER (BY SRI GIRIDHAR S V, GIRIDHAR AND CO., ADVOCATE) AND: M/s. SANGHVI AGRO PULSES HAVING ITS HEAD OFFICE AT NO.43, ACHARAPPAN STREET, II FLOOR, CHENNAI - 600 001. HAVING ITS CORPORATE OFFICE, AT NO.6/2, KASTURI INDUSTRIAL ESTATE, TUMAKURU ROAD, MAKALI, BENGALURU - 562 123. A PARTNERSHIP FIRM, REP BY ITS PARTNER, SRI MITESH SANGVI, AGED ABOUT 40 YEARS, S/O SRI D LALIT KUMAR. …RESPONDENT [BY SRI SRIPAL J. SANGVI, ADVOCATE FOR SRI V. PADMARAJ MUTHA, ADVOCATE (VC)] Digitally signed by ANUSHA V Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:27437 CRL.P No. 575 of 2021 THIS CRL.P IS FILED U/S.482 BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONBLE COURT MAY BE PLEASED TO QUASH THE PROCEEDINGS IN C.C.NO.3559/2020 ON THE FILE OF THE 20TH ADDITIONAL SMALL CAUSES JUDGE AND A.C.M.M., BENGALURU CITY IN SO FAR AS THE SAME RELATES TO PETITIONER IS CONCERNED AND PASS AN ORDER AS TO THE COST ON THE PRESENT PROCEEDINGS. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI ORAL ORDER Challenging proceedings in CC no.3559/2020 on file of XX Additional Small Causes Judge and A.C.M.M., Bengaluru City, this petition is filed. 2. Sri Giridhar S.V., learned counsel for petitioner submitted one of specific grounds urged was that proceedings initiated against petitioner (accused no.3) for offence punishable under Section 138 of Negotiable Instruments Act, 1881 ('NI Act') would be untenable and contrary to law laid down b yHon'ble Supreme Court in cases of SMS Pharmaceuticals Ltd. v. Neeta Bhalla, reported in (2005) 8 - 3 - HC-KAR NC: 2026:KHC:27437 CRL.P No. 575 of 2021 SCC 89; National Small Industries Corporation Ltd. v. Harmeet Singh Paintal and Anr., reported in (2010) 3 SCC 330; Ashoke Mal Bafna v. Upper India Steel Mfg. & Eng. Co., Ltd., reported in (2018) 14 SCC 202; Standard Charted Bank v. State of Maharastra, reported in (2016) 6 SCC 78 and in Shailendra Swarup v. Deputy Director, Enforcement Directorate, reported in 2020 SCC OnLine SC 600, on ground that as on alleged date of commission of offence i.e. 05.08.2020, accused no.3 was not Director of Company and had resigned/retired from Directorship of Company on 19.06.2020. Therefore, registration of proceedings against accused no.3 would be contrary to law and abuse of process of Court. 4. Sri Sripal J. Sanghvi, learned counsel appearing for Sri V. Padmaraj Mutha, advocate for respondent on other hand concedes to legal position that without specific material to indicate that Director was in-charge of day to day affairs of company and authorized to issue cheque, prosecution of such Director for offence under Section 138 of NI Act would be unsustainable. - 4 - HC-KAR NC: 2026:KHC:27437 CRL.P No. 575 of 2021 5. Heard learned counsel for parties and perused material on record. 6. At out set it is seen that there is no material placed on record to substantiate that accused no.3 had not resigned or retired from Company from 19.06.2020, had continued as Director of Company and was responsible for issuance of cheque in question. In absence of such material, in view of ratio in above cited decisions, continuation of proceedings against accused no.3 would be abuse of process of Court. 7. Therefore, petition is allowed and proceedings are quashed only insofar as accused no.3 in CC.no.3559/2020 on file of XX Additional Small Causes Judge and A.C.M.M., Bengaluru City. Sd/- (RAVI V HOSMANI) JUDGE GRD List No.: 1 Sl No.: 31