- 1 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA CRIMINAL PETITION NO. 6637 OF 2025 BETWEEN: 1. MR. SRINIVAS HUANASIKATTE, S/O. JAYATHIRTH, AGED ABOUT 55 YEARS, AUTHORISED OFFICER, ANAND RATHI GLOBAL FINANCE, 4TH FLOOR, BIKANER PINNACLE NO.1, REHENIUS STREET, RICHMOND ROAD, BANGALORE - 11 AND ALSO RESIDING AT 2ND CROSS, NO.105, PRAGATHI APARTMENT, J.P.NAGAR, BENGALURU - 26. 2. MR. RAVINDRA SIVARAMAN, S/O S.SIVARAMAN, AGED 59 YEARS, ANAND RATHI GLOBAL FINANCE LTD., 4TH FLOOR, BIKANER PINNACLE NO.1. REHENIUS STREET, RICHMOND ROAD, BANGALORE - 560 011, AND ALSO RESIDING AT NO.561, 1ST 'D' CROSS, 3RD MAIN, Digitally signed by PADMAVATHI B K Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 MATHIKERE, BENGALURU - 54. …PETITIONERS (BY SRI. VENKATESH S. ARBATTI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, BY THE KOTHANUR POLICE STATION, REPRESENTED BY THE STATE PUBLIC PROSECUTOR, BANGALORE CITY. 2. MR. NITIN CHERIYAN PAUL, VILLA NO.C-11, W/O. CHERIYAN POUL, AGE 38 YEARS, STERLING VILLA GRANDE, WHITE FIELD MAIN ROAD, SEEGEHALLI VILLAGE, HOSAKOTTE, KANNAMANGALA POST, BANGALORE - 560 057. …RESPONDENTS (BY SRI. K.NAGESHWARAPPA, HCGP FOR R1; MS.MANIKA H.B., ADVOCATE FOR SRI.H.N.NARENDRA DEV, ADVOCATE FOR R2) THIS CRL.P. IS FILED U/S 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO a) QUASH THE ORDER DATED 23.09.2022 PASSED BY HONBLE 4TH ADDL. CHIEF JUDICIAL MAGISTRATE, BENGALURU IN CC.NO.30516/2022 OF TAKING COGNIZANCE OF OFFENCE P/U/S. 406, 420 R/W 34 OF IPC AND ISSUANCE OF SUMMONS TO BE PETITIONERS AND QUASH ENTIRE - 3 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 PROCEEDINGS. b) TO QUASH CHARGESHEET FILED IN CC.NO.30516/2022 FOR THE OFFENCE P/U/S. 406, 420 R/W 34 OF IPC PENDING BEFORE HONBLE 4TH ADDL. CMM, BENGALURU. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER Petitioner No.1, an authorized officer of Anand Rathi Global Finance Ltd., is before the Court calling in question the registration of a crime in Crime No.137/2021. Petitioner No.2 is the office bearer of the Anand Rathi Global Finance Ltd. Respondent No.2 is the complainant. A complaint comes to be registered on the score that the authorized officer has not issued a No Objection Certificate from the complainant, a purchaser from the hands of the developer, who was in debt with Anand Rathi Global Finance Ltd. 2. Heard Sri. Venkatesh S. Arbatti, learned counsel appearing for the petitioners, Sri. K. Nageshwarappa, learned HCGP appearing for respondent No.1, Ms. Manika H.B., learned - 4 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 counsel for Sri. H.N. Narendra Dev, learned counsel appearing for respondent No.2 and have perused the material on record. 3. Learned counsel appearing for the petitioners submits that collateral proceedings were also initiated before this Court in W.P.No.12769/2021 and the No Objection Certificate is issued to the present complainant and the apartment is also handed over to the complainant now and the entire loan amount is cleared. The order passed by this Court on 13.01.2023, reads as follows: "The petitioners are before this Court seeking the following prayer: a) Issue a writ of certiorari or any other writ or order and quash the impugned possession notice dated 24/12/2020 issued by 1st Respondent - ANNEXURE M so far as it relates to Apartment bearing No. 1107, 103 and 204 constructed over the schedule property. b) Pass such other order as this Hon'ble court deems fit in the interest of Justice and Equity." 2. Heard Sri. Rakesh B. Bhatt, learned counsel appearing for the petitioners, Sri. K.V. Lokesh, learned counsel appearing for caveator/respondent No.1, Sri. Kishor Kumar, learned counsel appearing for respondent No.2 and have perused the material on record. 3. The grievance that leads the petitioners to this Court was non-issuance of No Objection Certificate by the Bank for the apartment so described in the prayer. - 5 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 4. Learned counsel appearing for caveator/respondent No.1 – Bank would submit that the No Objection Certificate is issued to respondent No.2 - Builder concerning the aforesaid apartment. This was the only grievance that lead the petitioners to this Court 5. Therefore, in the light of the No Objection Certificate being issued to respondent No.2 and also communicated to the petitioners, nothing further would survive for consideration at the hands of this Court. 6. In the light of the aforesaid submissions as a matter of form, the possession notice relating to apartment bearing No.1107, 103 and 204 would stand quashed. 7. It is made clear that the quashment of this order will not enure to the benefit of any other apartment." and the closure and the issuance of No Due Certificate by Anand Rathi Global Finance Ltd., reads as follows: " Date: 14th April, 2023 To, Chowriappa Constructions Private Limited 6th Floor, Cristu Complex, No.41, Lavelle Road, Bangalore-560001 Sub: Closure of Loan - Loan account number ARGFL/CF/007- Chowriappa Constructions Private Limited. Dear Sir, We refer to the revolving credit facility sanctioned to "Chowriappa Constructions Private Limited" for their project:- Chowriappa Constellations for an amount of - 6 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 Rs.9,00,00,000/- (Rupees Nine Crores only) dated 15th November, 2016. We hereby confirm that Chowriappa Constructions Private Limited has repaid the loan amount through one time settlement and accordingly there are no dues in their account with Anand Rathi Global Finance Limited for the above mentioned facility. Thanking you, For Anand Rathi Global Finance Limited sd/- Authorized Signatory" 4. All of these have happened in the year 2023 itself. The crime in fact had been registered in the year 2021 i.e., on 31.07.2021. The offences alleged are the ones punishable under Sections 406 and 420 of the IPC. Since the entire issue gets triggered from the complaint, I deem it appropriate to notice the complaint: " ¢£ÁAPÀ: 31/07/2021 EAzÀ, ¸Àwãï ZÉÃjAiÀÄ£ï ¥Á¯ï ©£ï ZÉÃjAiÀÄ£ï CgÀĪÀiÁ£ï ¥Á¯ï, 38 ªÀµÀð ªÁ¸À £ÀA: ¹-11, ¸ÉÖÃjèAUï «¯Áè ºÉƸÀPÉÆÃmÉ-ªÉÊmï¦üïïØ ªÉÄÊ£ï gÉÆÃqï ¹UÉúÀ½î UÁæªÀÄ, PÀ£ÀߪÀÄAUÀ¼À CAZÉ ¨ÉAUÀ¼ÀÆgÀÄ-560067 ªÉÆ.¸ÀA.944959762 gÀªÀjUÉ, ¥ÉÆ°Ã¸ï ¸À¨ï-E£ïì¥ÉPÀÖgï PÉÆvÀÛ£ÀÆgÀÄ ¥Éưøï oÁuÉ - 7 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 ¨ÉAUÀ¼ÀÆgÀÄ £ÀUÀgÀ. «µÀAiÀÄ: ZËgÀ¥Àà PÀ£ïì¸ÀÖçPÀë£ïUÉ ¥ÉæöÊ.°Ã.UÉ ¸ÉÃjzÀ C±ÉÆÃPÀ ZËgÀ¥Àà ªÀÄvÀÄÛ C£ÀAvÀgÀw UÉÆèç¯ï ¥sÉÊ£Á£ïì PÀA¥À¤AiÀĪÀgÀÄ £À£ÀUÉ £ÀA©¹, ªÉÆøÀ ªÀiÁrgÀĪÀ §UÉÎ zÀÆgÀÄ. £Á£ÀÄ F ªÉÄîÌAqÀ «¼Á¸ÀzÀ°è £À£Àß PÀÄlÄA§ ¸ÀªÉÄÃvÀ ªÁ¸ÀªÁVzÀÄÝ, ¸ÀéAvÀ ©f£É¸ï ªÀiÁrPÉÆArgÀÄvÉÛãÉ. ¨ÉAUÀ¼ÀÆgÀÄ ¥ÀƪÀð vÁ®ÆèPÀÄ ºÉÆgÀªÀiÁªÀÅ ªÁqïð£À°è£À ©©JA¦ ªÁå¦ÛUÉ M¼À¥ÀqÀĪÀ ºÀ¼É ¸ÀªÉð £ÀA.34/1 ºÁ° SÁvÁ £ÀA.5 gÀ°è£À 53985 ZÀ.Cr (1 JPÀgÉ 10 UÀÄAmÉ) gÀ ¸ÀévÀÛ£ÀÄß 29/11/2010 gÀAzÀÄ ZËgÀ¥Àà PÀ£ïìlæPïë£ïì ¥ÉæöÊ.°Ã PÀA¥À¤AiÀÄ C±ÉÆÃPÀ ZËgÀ¥Àà ªÀÄvÀÄÛ ¦æÃw ZËgÀ¥Àà ªÀjUÉ dAn C©üªÀÈ¢Þ PÀgÁgÀÄ¥ÀvÀæªÀ£ÀÄß(eÉrJ) ªÀiÁrPÉÆnÖgÀÄvÀÛzÉ. £Á£ÀÄ F ¸ÀéwÛUÉ £À£Àß vÀAzÉ-vÁ¬ÄUÀ¼À ¥ÀgÀªÁV f¦J ºÉÆîØgï DVgÀÄvÉÛãÉ. ZËgÀ¥Àà PÀ£Àì¸ÀÖçPÀë£ïì ¥ÉæöÊ.°Ã £ÀªÀgÀÄ CVæªÉÄAmï£ÀAvÉ CªÀgÀ ¨sÁUÀPÉÌ §gÀĪÀ 60% ¥sÁèmïUÀ¼À£ÀÄß (¥sÁèmï £ÀA§gï ¸ÀªÉÄÃvÀ) jZÀªÀÄAqï gÀ¸ÉÛAiÀÄ §½ EgÀĪÀ D£ÀAzÀgÀw UÉÆèç¯ï ¥sÉÊ£Á£ïì £ÀªÀgÀ §½ CqÀªÀiÁ£À«lÄÖ ¯ÉÆÃ£ï ¥ÀqÉzÀÄ PÀ£Àì¸ÀÖçPÀë£ï ªÀiÁrgÀÄvÁÛgÉ. DzÀgÉ 2019gÀ°è ZËgÀ¥Àà PÀ£Àì¸ÀÖçPÀë£ïì ¥ÉæöÊ.°Ã£À C±ÉÆÃPÀ ZËgÀ¥Àà gÀªÀgÀÄ £À£ÀߣÀÄß ¸ÀA¥ÀQð¹, CªÀgÀ ¨sÁUÀPÉÌ §A¢gÀĪÀ FUÁUÀ¯Éà D£ÀAzÀgÀw ¥sÉÊ£Á£ïì£À°è ªÀiÁlðUÉÃeï ªÀiÁrgÀĪÀ ¥sÁmï £ÀA:1107 & 103 UÀ¼À£ÀÄß £ÀªÀÄä ¨sÁUÀPÉÌ §A¢zÀÝ ¥sÁèmï £ÀA:707 & 1007 UÀ½UÉ §zÀ° (JPïìZÉAeï) ªÀiÁrPÉÆqÀĪÀAvÉ w½¹zÀÝgÀÄ. £ÁªÀÅ CªÀjUÉ ¤ªÀÄä ¥sÁèmïUÀ¼ÀÄ FUÁUÀ¯Éà ªÀiÁlðUÉÃeï DVzÀÄÝ, £ÀªÀÄUÉ ¨ÉÃqÀ JAzÀÄ w½¹zÀgÀÆ PÉüÀzÉÃ, CªÀÅUÀ¼À£ÀÄß ©r¹PÉÆqÀĪÀÅzÁV £ÀªÀÄUÉ ¨sÀgÀªÀ¸É ¤ÃrzÀÝgÀÄ. CzÀgÀAvÉ £ÁªÀÅ ¸ÀºÀ M¦àPÉÆAqÀÄ 17/08/2019 gÀAzÀÄ £À«ÃPÀgÀt ºÀAaPÉ PÀgÁgÀÄ ¥ÀvÀæ (ªÉÆÃr¥ÉÊqï C¯ÉÆèÃPÉõÀ£ï C¥ÉèÃPÉõÀ£ï) ªÀ£ÀÄß ªÀiÁrgÀÄvÉÝ. 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EzÀjAzÀ C±ÉÆÃPÀ ZËgÀ¥Àà ªÀÄvÀÄÛ D£ÀAzÀvÀj UÉÆèç®gï ¥sÉÊ£Á£ïì PÀA¥À¤AiÀĪÀgÀÄ ¸ÉÃjPÉÆAqÀÄ GzÉÝñÀ¥ÀƪÀðPÀªÁV £À£ÀUÉ ªÉÆøÀ ªÀiÁqÀÄwÛgÀĪÀÅzÀÄ PÀAqÀħA¢gÀÄvÀÛzÉ. DzÀÝjAzÀ vÁªÀÅUÀ¼ÀÄ ¸ÀzÀj ZËgÀ¥Àà PÀ£Àì¸ÀÖçPÀë£ïìUÉ ¥ÉæöÊ.°Ã. £À C±ÉÆÃPÀ ZËgÀ¥Àà ªÀÄvÀÄÛ D£ÀAzÀvÀj UÉÆèç¯ï ¥sÉÊ£Á£ïì PÀA¥À¤AiÀÄ ²æäªÁ¸À ºÀÄt¸ÉPÀnÖ(¸ÉÖÃmïì E£ïZÁeïð), gÀ«ÃAzÀæ ²æÃgÁªÀÄ£ï(D¦üøï E£ïZÁeïð) ªÀÄvÀÄÛ EvÀgÀgÀ «gÀÄzÀÞ ¸ÀÆPÀÛ PÁ£ÀÆ£ÀÄ PÀæªÀÄ dgÀÄV¸À¨ÉÃPÉAzÀÄ PÉÆÃgÀÄvÉÛãÉ." 5. The police after investigation have filed a charge sheet even in the case at hand. The summary of the charge sheet as obtaining in column No.7 reads as follows: "zÉÆõÁgÉÆÃ¥ÀuÉ ¥ÀnÖAiÀÄ PÁ®A £ÀA:04 gÀ°è £ÀªÀÄÆ¢¹gÀĪÀ 1£ÉÃ, 2£Éà ªÀÄvÀÄÛ 3£Éà DgÉÆæUÀ¼À ¥ÉÊQ, 1£Éà DgÉÆæAiÀÄÄ ¸ÁQë-1 gÀªÀjUÉ ¸ÉÃjzÀ ¨ÉAUÀ¼ÀÆgÀÄ ¥ÀƪÀð vÁ®ÆèPÀÄ ºÉÆgÀªÀiÁªÀÅ ªÁqÀð£À°ègÀĪÀ ©©JA¦ ªÁå¦ÛUÉ M¼À¥ÀqÀĪÀ ºÀ¼É ¸ÀªÉð £ÀA:34/1, ºÁ° SÁvÁ £ÀA:05 gÀ°è£À ¸ÀĪÀiÁgÀÄ 53985 ZÀ.Cr (01 JPÀgÉ 10 UÀÄAmÉ) AiÀÄ ¸ÀéwÛ£À°è C¥ÁmïðªÉÄAmï ¤ªÀiÁð£ÀPÁÌV ¢£ÁAPÀ:29/11/2010 gÀAzÀÄ eÉrJ ªÀiÁrPÉÆArzÀÄÝ, eÉrJ CVæªÉÄAmï£ÀAvÉ ¸ÁQë-1 gÀªÀgÀ ¨sÁUÀPÉÌ 40% ¥sÁèmïUÀ¼ÀÄ ªÀÄvÀÄÛ 1£Éà DgÉÆæAiÀÄ ¨sÁUÀPÉÌ 60% ¥sÁèmïUÀ¼ÀAvÉ M¥ÀàAzÀ ªÀiÁrPÉÆArgÀÄvÁÛgÉ. 1£Éà DgÉÆæAiÀÄÄ vÀ£Àß ¨sÁUÀPÉÌ §A¢zÀÝ ¥sÁèmïUÀ¼À£ÀÄß 2£Éà & 3£Éà DgÉÆæUÀ¼ÀÄ PÉ®¸À ªÀiÁqÀÄwÛzÀÝ D£ÀAzÀgÀw UÉÆèç¯ï ¥sÉÊ£Á£ïì °Ã. PÀA¥À¤AiÀÄ°è ªÀiÁlðUÉÃeï ªÀiÁrPÉÆAqÀÄ ¯ÉÆÃ£ï ¥ÀqÉzÀÄPÉÆAqÀÄ PÁªÀÄUÁjAiÀÄ£ÀÄß ¥ÁægÀA©¹ C¥ÁmïðªÉÄAmï --- ¤«Äð¹gÀÄvÁÛgÉ. ¥sÁèmïUÀ¼À£ÀÄß ªÀiÁgÁl ªÀiÁqÀĪÀ ¸ÀªÀÄAiÀÄzÀ°è 1£Éà DgÉÆæAiÀÄÄ ¸ÁQë-1 gÀªÀgÀ£ÀÄß ¸ÀA¥ÀQð¹, vÀ£Àß ¨sÁUÀPÉÌ §A¢zÀÝ ºÁUÀÆ FUÁUÀ¯Éà 2£Éà ªÀÄvÀÄÛ 3£Éà DgÉÆæUÀ¼À ¥sÉÊ£Á£ïì PÀA¥À¤AiÀÄ°è ªÀiÁlðUÉÃeï ªÀiÁrzÀÝ ¥sÁèmï £ÀA:1107 ªÀÄvÀÄÛ 103 UÀ¼À §zÀ°UÉ, ¸ÁQë-1 gÀªÀgÀ ¨sÁUÀPÉÌ §A¢zÀÝ ¥sÁèmï £ÀA:707 & 1007 UÀ¼À£ÀÄß §zÀ° ªÀiÁrPÉÆqÀĪÀAvÉ ªÀiÁvÀÄPÀvÉ ªÀiÁrPÉÆAqÀÄ F §UÉÎ ¢£ÁAPÀ:17/08/2019 gÀAzÀÄ ªÉÆr¥sÉÊqï C¯ÉÆèÃPÉõÀ£ï CVæªÉÄAmï C£ÀÄß ªÀiÁrPÉÆArgÀÄvÁÛgÉ. DzÀgÉ EzÁzÀ £ÀAvÀgÀ 1£Éà DgÉÆæAiÀÄÄ 2£Éà ªÀÄvÀÄÛ 3£Éà DgÉÆæUÀ¼ÉÆA¢UÉ ¸ÉÃjPÉÆAqÀÄ ¸ÁQë-1 gÀªÀjUÉ ªÉÆøÀ ªÀiÁqÀĪÀ GzÉÝñÀ¢AzÀ CªÀjUÉ F ªÀÄÄAZÉ ªÀiÁlðUÉÃeï£À°èzÀÝ ¥sÁèmï £ÀA:1107 & 103 UÀ¼À£ÀÄß ¸ÁQë-1 gÀªÀjUÉ ¤ÃqÀzÉÃ, ªÉÆr¥sÉÊqï C¯ÉÆèÃPÉõÀ£ï CVæªÉÄAmï£ÀAvÉ ¸ÁQë-1 gÀªÀjAzÀ ¥ÀqÉ¢zÀÝ ¥sÁèmï £ÀA.707 C£ÀÄß ¸ÁQë-5 gÀªÀjUÉ ªÀÄvÀÄÛ ¥sÁèmï £ÀA:1007 C£ÀÄß ¸ÁQë-4 gÀªÀjUÉ ªÀiÁgÁl ªÀiÁr, ºÀtªÀ£ÀÄß ¥ÀqÉzÀÄPÉÆArgÀÄvÁÛgÉ. - 9 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 1£Éà DgÉÆæAiÀÄÄ GzÉÝñÀ¥ÀƪÀðPÀªÁVAiÉÄà ¸ÁQë-1 gÀªÀjAzÀ §zÀ°UÉ 02 ¥sÁèmïUÀ¼À£ÀÄß ¥ÀqÉzÀÄPÉÆAqÀÄ, £ÀAvÀgÀ 2£Éà ªÀÄvÀÄÛ 3£Éà DgÉÆæUÀ¼ÉÆA¢UÉ ¸ÉÃjPÉÆAqÀÄ §zÀ° ¥sÁèmïUÀ¼À£ÀÄß PÉÆqÀzÉêÀÄ ¸ÁQë-1 gÀªÀjAzÀ ¥ÀqÉ¢zÀÝ ¥sÁèmïUÀ½UÉ ¸ÀA§A¢¹zÀAvÉ J£ïN¹ ¥ÀqÉzÀÄPÉÆAqÀÄ ¸ÉÃ¯ï ªÀiÁr ªÉÆøÀ ªÀiÁrgÀĪÀÅzÀÄ ®¨sÀå«gÀĪÀ ¸ÁQëUÀ½AzÀ ¸Á©ÃvÁVgÀÄvÀÛzÉ." (sic) 6. A perusal at the complaint or the summary of the charge sheet particularly in the teeth of the subsequent events, permitting further trial against this petitioner would become an abuse of the process of the law for the reason that the ingredients as obtaining under Section 405 of the IPC, for it to become Section 406 of the IPC-Criminal Breach of Trust, is not found even to its semblance in the case at hand. Same goes with the offence under Section 420 of IPC, for which, the ingredients as obtaining under Section 415 of IPC is not found even to its remotest sense. 7. For the aforesaid reasons, the following: ORDER (i) The petition is allowed. - 10 - HC-KAR NC: 2026:KHC:34529 CRL.P No. 6637 of 2025 (ii) Proceedings in C.C.No.30516/2022 pending before the 4th Additional Chief Judicial Magistrate, Bengaluru, stands quashed qua the petitioners. Sd/- (M.NAGAPRASANNA) JUDGE SJK List No.: 2 Sl No.: 27