- 1 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE RAVI V HOSMANI CRIMINAL PETITION NO. 3763 OF 2019 C/W CRIMINAL PETITION NO. 3764 OF 2019 CRIMINAL PETITION NO. 3765 OF 2019 IN CRL.P No. 3763/2019 BETWEEN: 1. N.H. RAJU S/O M. NAGARAJ, AGED ABOUT 55 YEARS ADDRESS IN FIR: PRESIDENT PANCHAVATI MALTI STATE CO-OPERATIVE SOCEITY, ABHIMAN BUILDING, 18TH C MAIN ROAD, RAJAJINAGAR, BENGALURU - 560 010. PRESENTLY RESIDING AT NO.MIG-100, 1ST FLOOR, 2ND STAGE, K.H.B COLONY, NEAR PUNYA HOSPITAL, BASAVESHWARANAGAR, BANGALORE - 560 079. 2. LINGARAJU K S/O KARIYAPPA AGED ABOUT 37 YEARS ADDRESS IN FIR: DIRECTOR, PANCHAVATI MALTI STATE CO-OPERATIVE SOCIETY, ABHIMAN BUILDING, 18TH C MAIN ROAD, RAJAJINAGAR, BENGALURU - 560 010. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 PRESENTLY RESIDING AT NO.10, 2ND MAIN, 5TH CROSS, NEAR SARASWATHI VIDYALAYA BAPUJINAGAR, GOVERNMENT ELECTRIC FACTORY BANGALORE - 560 026. 3. NARAYANA REDDY S/O BALA REDDY AGED ABOUT 53 YEARS ADDRESS IN FIR: DIRECTOR PANCHAVATI MALTI STATE CO-OPERATIVE SOCEITY, ABHIMAN BUILDING, 18TH C MAIN ROAD, RAJAJI NAGAR, BENGALURU - 560 010. PRESENTLY RESIDING AT MUNNIKOLA MARATHALLI, OPPOSITE GOVERNMENT COLLEGE, BANGALORE - 560 037. 4. SRI. B. VEERABHADRAPPA S/O MAHADEVAPPA AGED ABOUT 40 YEARS ADDRESS IN FIR PANCHAVATI MALTI STATE CO-OPERATIVE SOCEITY, ABHIMAN BUILDING, 18TH C MAIN ROAD, RAJAJI NAGAR, BENGALURU - 560 010. PRESENTLY RESIDING AT 402 SRI. VENKATESHWARA NILAYA 1ST STAGE, NEAR CHACHA PARK VINOBHANAGAR, SHIVAMOGGA - 577 204. …PETITIONERS (BY SRI. SUYOG HERELE E, ADVOCATE) - 3 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 AND: 1. THE STATE OF KARNATAKA BY TIPTUR TOWN P.S, TUMKUR REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA BENGALURU - 560 001. 2. SRI. B. RAMAPPA S/O SRI. NINGEGOWDA AGED ABOUT 45 YEARS R/AT 301/C, 4TH CROSS, BEHIND PETROL BUNK VIDYANAGARA, HASSAN HASSAN CIRCLE, TIPTUR TOWN, TUMKURU - 572 201. …RESPONDENTS (BY SMT. SOWMYA R, HCGP FOR R1; R2 - SERVED AND UNREPRESENTED) THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE FIR AND COMPLAINT IN CRIME NO.49/2019 REGISTERED BY TIPTUR P.S ON THE FILE OF THE SENIOR CIVIL JUDGE AND JMFC TIPTUR,TUMKUR DISTRICT FOR THE ALLEGED OFFENCE UNDER SECTIONS 406, 420, R/W 34 OF IPC. IN CRL.P NO. 3764/2019 BETWEEN: N.H. RAJU S/O M. NAGARAJ, AGED ABOUT 55 YEARS, RESIDING AT NO.MIG-100, 1ST FLOOR, 2ND STAGE, - 4 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 K.H.B COLONY, NEAR PUNYA HOSPITAL, BASAVESHWARANAGAR, BANGALORE - 560 079. ...PETITIONER (BY SRI. SUYOG HERELE E, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY GUBBI P.S. TUMKUR, REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU - 560 001. 2. SRI. RAJANNA S/O PAPANNA, AGED ABOUT 50 YEARS, R/AT MALLENAHALLI HATTI, TIPPUR POST, GUBBI TALUK, TUMKUR - 577 216. ...RESPONDENTS (BY SMT. SOWMYA R, HCGP FOR R1; R2 - SERVED) THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE FIR AND COMPLIANT IN CRIME NO.67/2019 REGISTERED BY GUBBI POLICE STATION ON THE FILE OF THE SENIOR CIVIL JUDGE AND J.M.F.C GUBBI, TUMKUR DISTRICT FOR THE ALLEGED OFFENCE UNDER SECTION 406 AND 420 OF IPC. IN CRL.P NO. 3765/2019 BETWEEN: N.H. RAJU - 5 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 S/O M. NAGARAJ, AGED ABOUT 55 YEARS, RESIDING AT NO.MIG-100, 1ST FLOOR, 2ND STAGE, K.H.B COLONY, NEAR PUNYA HOSPITAL, BASAVESHWARANAGAR, BANGALORE - 560 079. ...PETITIONER (BY SRI. SUYOG HERELE E, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY GUBBI P.S. TUMKUR, REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU - 560 001. 2. SRI. ALEGOWDA S/O SRI. CHIKKA SIDDAIAH, AGED ABOUT 40 YEARS, R/AT MALLENAHALLI, HATTI, TIPPUR POST, GUBBI TALUK, TUMKUR - 577 216. ...RESPONDENTS (BY SMT. SOWMYA R, HCGP FOR R1; R2 - SERVED) THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE FIR AND COMPLIANT IN CRIME NO.68/2019 REGISTERED BY GUBBI POLICE STATION ON THE FILE OF THE SENIOR CIVIL JUDGE AND J.M.F.C GUBBI, TUMKUR DISTRICT FOR THE ALLEGED OFFENCE UNDER SECTION - 6 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 406 AND 420 OF IPC. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE RAVI V HOSMANI ORAL ORDER These petitions are filed seeking for following reliefs- i. Crl.P.no.3763/2019 is filed to quash FIR and complaint in Crime no.49/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Tiptur, Tumkur district for alleged offences under Sections 406 and 420 read with Section 34 of IPC. ii. Crl.P.no.3764/2019 is filed to quash FIR and complaint in Crime no.67/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Gubbi, Tumkur district for alleged offence under Sections 406 and 420 of IPC. iii. Crl.P.no.3765/2019 is filed to quash FIR and complaint in Crime no.68/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Gubbi, Tumkur district for alleged offence under Sections 406 and 420 of IPC. 2. Sri Suyog Herele, learned counsel for petitioners submitted that petitioners were accused in complaint filed by respondent no.2 alleging that accused had at time of opening - 7 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 new branches of Panchawati Multi State Co-operative Credit Society Limited in Gubbi and Tiptur, had promised respondent no.2 - complainant, employee of Bank that he would be paid incentive/bonus, if he collected large amount of deposits. Based on assurance, complainant and other such employees had collected huge amount of deposits for Bank and when they demanded bonus / incentives, complaints were filed. It was also alleged that complainant apprehended accused would cheat depositors as done earlier. Based on complaints FIR were registered. 3. It was submitted that grievance of complainant against accused was primarily about non-payment of bonus/incentive which was purely civil in nature and resort to criminal proceedings was to exert pressure on petitioners to heed to their demands. It was submitted impugned proceedings were counter blast to complaints filed against them by petitioner - Bank. It was submitted that document no.4 in Crl.P.no.3764/2019 and Crl.P.no.3765/2019 would indicate that prior complaints were filed against complainants themselves. It was further submitted that offences alleged against petitioner - - 8 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 accused were under Sections 406 and 420 read with Section 34 of IPC, which cannot arise from same incident. It was also submitted ingredients of neither of offences of mis- appropriation or cheating were contained in complaint. Complaint was, in fact, cyclostyled form and that complainants filled in blanks and though there was no complaint filed against complainant in Crl.P.no.3763/2019, intention of complainant was to exert pressure, to heed to claims of other complainants herein and thus apparent abuse of process of law. On above grounds, learned counsel sought for allowing petitions. 4. Smt.Sowmya R., learned High Court Government Pleader, on other hand, would oppose petitions. 5. It was submitted that complaints contained allegation about petitioners-accused having indulged in collecting deposits and thereafter failing to repay. Grounds urged were defences and would be a matter for investigation and trial. On said ground, sought for dismissal. 6. Heard learned counsel. Perused material on record. Complainants are served and unrepresented. - 9 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 7. These petitions are by accused challenging registration of complaints filed alleging commission of offences of mis-appropriation and cheating. Bare perusal of complaint indicates that complainants were employees of Credit Society. It is alleged that they were promised bonus/incentive for collecting large amount of deposits which was illegally denied. Mere breach of promise to pay or failure to honour promises to avail monetary benefits would at best give rise to a claim for money before Civil Court. Unless incidents indicate commission of any offence, resort to criminal proceedings would be suspect of being filed to exert pressure and would be abuse of process. 8. Besides, it is seen that present impugned complaints were filed, after complaints were filed against them by Credit Societies, as demonstrated by document no.4 produced in Crl.Ps.no.3764 and 3765 of 2019. Thus, complaints herein are found to be counter blast. Besides above, as held by Hon’ble Supreme Court in Delhi Race Club (1940) Ltd. v. State of Uttar Pradesh , reported in (2024) 10 SCC 690, offences of cheating and mis-appropriation cannot be alleged in respect of same incident. - 10 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 9. In any case, perusal of complaint averments, reveals absence of any allegation of petitioners' having induced complainants to collect deposits with unlawful intent at inception nor is there allegation of subsequent wrongful mis- appropriation. In case complainants were due any amounts by Society, they ought to have resorted to civil remedies. 10. Further all complaints are verbatim same, except particulars of complainants which are filled into blanks. Same would be indicative of collective resort to criminal proceedings to exert pressure and substantiate abuse of process. On said ground, Petitions would succeed. 11. In view of above, Petitions are allowed, proceedings in Crime no.49/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Tiptur, Tumkur district for alleged offences under Sections 406 and 420 read with Section 34 of IPC; in Crime no.67/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Gubbi, Tumkur district for alleged offence under Sections 406 and 420 of IPC; and in Crime no.68/2019 registered by Gubbi Police Station on file of Senior Civil Judge & JMFC, Gubbi, Tumkur district for alleged offence under Sections 406 - 11 - HC-KAR CNR: KAHC010150082019 NC: 2026:KHC:36782 CRL.P No. 3763 of 2019 C/W CRL.P No. 3764 of 2019 CRL.P No. 3765 of 2019 and 420 of IPC stand quashed. Consequently, pending I.As. are dismissed as unnecessary. Sd/- (RAVI V HOSMANI) JUDGE HNM List No.: 1 Sl No.: 8