- 1 - HC-KAR NC: 2026:KHC:30318 CRL.P No. 6411 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI CRIMINAL PETITION NO.6411 OF 2019 BETWEEN: SRI PRASANNA @ PRASI S/O RAJANNA AGED ABOUT 30 YEARS R/O HOUSING BOARD COLONY ARAKALGUD TALUK HASSAN DISITRCT PIN - 573 102. …PETITIONER [BY SRI SUYOG HERALE E., ADVOCATE FOR SRI RAHUL RAI K., ADVOCATE (PH)] AND: 1. THE STATE OF KARNATAKA THROUGH ARAKALGUD POLICE STATION, HASSAN DISTRICT REP BY STATE PUBLIC PROSECUTOR HIGH COURT BUILDINGS BENGALURU - 560 001. 2. SRI SHASHIDHAR M N., S/O NOT KNOWN TO THE PETITIONER AGE: NOT KNOWN TO THE PETITIONER CIRLCE INSPECTOR OF POLICE CPI ARAKALGUD CIRCLE, ARAKALGUD TALUK, HASSAN DISTRICT PIN - 573102. …RESPONDENTS [BY SMT.SOWMYA R., HCGP FOR R1 & R2 (PH)] CRL.P FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HON'BLE COURT MAY BE Digitally signed by ANUSHA V Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:30318 CRL.P No. 6411 of 2019 PLEASED TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.34/2016 ON THE FILE OF THE LEARNED CIVIL JUDGE AND JMFC, ARAKALAGUD, HASSAN FOR THE OFFENCE P/U/S 420 OF IPC. 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.34/2016 on file of Civil Judge and J.M.F.C., Arakalagud, Hassan, for offence punishable under Section 420 of Indian Penal Code, 1860 ('IPC') read with Sections 3 and 4 of Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 ('Act of 2004') against petitioner, this petition is filed. 2. Sri Suyog Herale E., learned counsel appearing for Sri Rahul Rai K., advocate for petitioner (accused) submitted that on a complaint filed by Shashidhar M.N., Circle Inspector of Police (CPI), Crime no.173/2015 was registered by Arakalagud Police against accused for offences punishable under Section 420 of IPC read with Sections 3 and 4 of Act of 2004. Same was taken cognizance by learned Additional Civil - 3 - HC-KAR NC: 2026:KHC:30318 CRL.P No. 6411 of 2019 Judge (Jr.Dn.) and J.M.F.C Court, Arakalagud, Hassan. Alleging initiation of proceedings against accused was in violation of Section 5 of Act of 2004, this petition is filed. 3. It was submitted that Act of 2004 provided for an enquiry under Sub-Section 2 of Section 5 and as per Sub- Section 1 of Section 5, debtor was required to file a petition before Court by depositing money due in respect of loan received from any person together with interest at rate fixed by Government. And there was no provision for registration of complaint by Police. It was submitted, this Court in Criminal Petition no.102117/2015 disposed of on 18.12.2015 had under similar circumstances for violation of procedure in Section 5 of Act of 2004 quashed proceedings. Based on said ratio, learned counsel sought for allowing petition. 4. Smt.Sowmya R., learned HCGP for respondents sought to oppose petition. 5. Heard learned counsel and perused material on record. - 4 - HC-KAR NC: 2026:KHC:30318 CRL.P No. 6411 of 2019 6. At outset, initiation of proceedings against accused for offences punishable under Section 420 of IPC read with Sections 3 and 4 of Act of 2004 are not dispute. Admittedly, proceedings are initiated based on a complaint by Police Officer about accused allegedly carrying on money lending business without license and charging exorbitant interest. Firstly, there would be no scope for Police registering complaint for offences under provisions of Act of 2004. Secondly, as held by this Court in Criminal Petition no.102117/2015, Section 5 of Act of 2004, mandates depositor to file a petition before Court by complying with Sub-Section 1 of Section 5. For violation of said procedure, petition would succeed. 7. Accordingly, petition is allowed, proceedings in CC no.34/2016 on file of Civil Judge and J.M.F.C., Arakalagud, Hassan for offence punishable under Section 420 of IPC read with Sections 3 and 4 of Act of 2004 stands quashed, but by reserving liberty to take action in accordance with law. Sd/- (RAVI V HOSMANI) JUDGE GRD List No.: 1 Sl No.: 26