- 1 - HC-KAR NC: 2026:KHC:34726 CRL.P No. 10364 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA CRIMINAL PETITION NO. 10364 OF 2023 BETWEEN: SRI.S.P.PRABHU S/O LATE PILLAMARAPPA, AGED ABOUT 55 YEARS, RESIDING AT SOMATHNAHALLI VILLAGE, CHANNAARYAPATNA HOBLI, DEVANAHALLI TALUK, BANGALORE RURAL DISTRICT-562129. …PETITIONER (BY MS. ROCHANA P.R. FOR SRI. SRINIVAS V., ADVOCATE) AND: SMT.M. SHARADHAMMA W/O SEENAPPA @ SHINAPPA, AGED ABOUT 60 YEARS, R/AT NO.343, RAMARA BEEDI, BUDIGERE VILLAGE, CHANNAARYAPATNA HOBLI, DEVANAHALLI TALUK, BANGALORE RURAL DISTRICT-562 129. …RESPONDENT THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO SET ASIDE THE ORDER DATED 07.06.2023 PASSED IN C.C.NO.1043/2023 ON THE FILE OF PRINCIPAL CIVIL JUDGE Digitally signed by PADMAVATHI B K Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:34726 CRL.P No. 10364 of 2023 AND J.M.F.C., DEVANAHALLI, AND CONSEQUENTLY QUASH ALL FURTHER PROCEEDINGS IN C.C.NO.1043/2023 REGISTERED FOR AN OFFENCE P/U/S 138 OF N.I. ACT. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before the Court calling in question the proceedings in C.C.No.1043/2023. 2. Heard the learned counsel Ms. Rochana P.R. for the learned counsel Sri. Srinivasa V, appearing for the petitioner. 3. The petitioner is the accused and the respondent is the complainant. A transaction between the petitioner and the respondent happened between May-2021 to September-2021, wherein the respondent - complainant is said to have lent an amount of Rs.10,00,000/- in furtherance of which the petitioner has issued a cheque belonging to the State Bank of Mysore. The said cheque is presented only to be returned for want of sufficient funds. The proceedings under Section 138 of the - 3 - HC-KAR NC: 2026:KHC:34726 CRL.P No. 10364 of 2023 Negotiable Instruments Act, 1881 ('the Act' for short) is thus instituted against the petitioner in C.C.No.1043/2023. 4. The learned counsel appearing for the petitioner submits that the petitioner is before the Court on the score that the Reserve Bank of India has issued guidelines with regard to the stale or invalid cheque, as the cheque was issued of State Bank of Mysore long after its amalgamation with the State Bank of India, which would be a non-CTS cheque. 5. The Reserve Bank of India itself has subsequently clarified that non-CTS cheques also could become the subject matter of the proceedings under Section 138 of the Act. This Court in Criminal Petition No.4978/2023, disposed on 11.07.2023, while considering the said circular of the Reserve Bank of India and whether non-CTS cheques would become subject matter of proceedings under Section 138 of the Act, and has held as follows: "…. …. …. 8. The issue lies in a narrow compass. The transaction between the parties is not in dispute. What is issued by the petitioner is a non-CTS cheque. The cheque truncated scheme was introduced by the Reserve Bank of India in the year 2011 and the scheme was still in operation upto 31.12.2018. Therefore, on and from - 4 - HC-KAR NC: 2026:KHC:34726 CRL.P No. 10364 of 2023 01.01.2019, the non-CTS cheque would lose its validity. The Reserve Bank of India further clarifies that though the non-CTS cheque loses its value from 01.01.2019, it would still be valid as a 'Negotiable Instrument'. 9. In the teeth of the aforesaid facts, the proceedings instituted by the complainant before the concerned Court cannot be seen to be tumbling down. 10. It would be useful to refer to the Circular of the Reserve Bank of India, which hold that non-CTS cheques are valid as a Negotiable Instrument and clarification by the Reserve Bank of India is as follows: "4. Are non-CTS cheques invalid? Banks have been advised to issue only CTS 2010 standard compliant cheques from September 30, 2012. Earlier, there were separate clearing sessions for non-CTS cheques. However, they were discontinued with effect from December, 31, 2018. As of now, non-CTS cheques cannot be presented in CTS. Banks have been advised to withdraw the non-CTS cheques from the customers. However, non-CTS cheques remain to be valid as a negotiable instrument." 11. The solitary submission of the petitioner is thus unacceptable." (Emphasis supplied) In that light, all these projections could be made by the petitioner before the concerned Court at the appropriate time. Reserving such liberty, the petition stands disposed. - 5 - HC-KAR NC: 2026:KHC:34726 CRL.P No. 10364 of 2023 Pending I.A.No.1/2023 also stands disposed as a consequence. Sd/- (M.NAGAPRASANNA) JUDGE JY List No.: 1 Sl No.: 33