- 1 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ CRIMINAL PETITION NO.871 OF 2019 BETWEEN: SRI KRISHNAMURTHY B. S. S/O. LATE B. SURYANARAYANASHETTY AGED ABOUT 51 YEARS RESIDING AT NO.27 17TH CROSS, 1ST MAIN ROAD B. K. NAGAR, YESHWANTHAPURA BENGALURU-560 022 …PETITIONER (BY SRI BASAVARAJ B. SAPPANNAVAR, ADVOCATE) AND: 1. SRI N. KRISHNAMURTHY AGED ABOUT 56 YEARS RESIDENT OF NO.197/24 13TH "C" MAIN, GOKULA I PHASE, I STAGE YESHWANTHAPURA BENGALURU-560 054 2. STATE OF KARNATAKA BY YESHWANTHAPURA PS BENGALURU-560 054 REPRESENTED BY SPP HIGH COURT OF KARNATAKA BENGALURU-560 001 …RESPONDENTS (BY SRI HARISH GANAPATHI, H.C.G.P., FOR R-2; R-1 IS SERVED AND UNREPRESENTED) Digitally signed by HEMALATHA J Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 CR.P.C PRAYING TO QUASH THE FIR IN CR.NO.67/2018 DATED 08.03.2018 FOR THE OFFENCES UNDER SECTIONS 406, 23, 506 AND 420 OF IPC AND SECTIONS 3 AND 4 OF KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT, 2004 AT ANNEXURE-A AND THE COMPLAINT DATED 08.03.2018 AT ANNEXURE-B ON THE FILE OF THE VI A.C.M.M., BENGALURU. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioner has called in question the initiation of criminal proceedings by respondent No.2 in Crime No.67/2018, for the offence punishable under Sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 (henceforth referred to as the 'Act, 2004' for short) and under Sections 406, 23, 506 and 420 of Indian Penal Code, 1860 (henceforth referred to as 'IPC' for short). 2. The petitioner contends that respondent No.1 informed respondent No.2 in writing on 08.03.2018 that he was in possession and enjoyment of a residential property having acquired it in terms of a sale deed dated 19.10.1973 and a deed of gift dated 10.04.2008. He claimed that he was in - 3 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 possession of the ground floor of the said property, while the other portions were let out to various tenants. He further claimed that he was in need of financial assistance and therefore met one Mr. P. S. Guptha, who introduced him to the petitioner. The petitioner purportedly disclosed that he could not extend any hand loan as he did not possess a money lending license and therefore suggested that a sale deed in respect of the aforesaid property be executed so that he could advance a loan of Rs.48,00,000/-. He alleged that the petitioner being a financier, used to lend money on the basis of conveyance of title of properties and that Mr. P. S. Guptha assured him that the petitioner would re-convey the property upon repayment of the loan along with interest. 3. The respondent No.1 therefore alleged that a sale deed was executed towards the financial assistance of Rs.48,00,000/- provided by the petitioner and that he was required to repay the said amount along with interest at 24% per annum. He claimed that the petitioner had received the annual interest up to date but had illegally deposited the title deeds of the property with M/s. Vysya Co-operative Bank Ltd. - 4 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 and availed a loan of Rs.55,00,000/-. The respondent No.1 claimed that this was done without his notice, knowledge or consent and that the petitioner had thereby deceived and cheated him. He also alleged that the petitioner was in the habit of extending financial assistance to various persons without holding a money lending license and had thereby deceived property owners and deprived such persons of their properties. Based on the said information, the respondent No.2 registered Crime No.67/2018 for the aforesaid offences and took up investigation. 4. The petitioner being aggrieved by the registration of an FIR against him for the aforesaid offences has filed this petition. 5. The learned counsel for the petitioner submits that the respondent No.1 had filed O.S.No.2338/2012 seeking a declaration that the sale deed dated 10.04.2008 executed in favour of the petitioner was null and void. He submits that the said suit was dismissed for non-prosecution on 19.12.2018 and that a miscellaneous petition filed under Order IX Rule 9 of the Civil Procedure Code, 1908 is still pending consideration. He - 5 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 therefore submits that after the dismissal of the suit, the respondent No.1 initiated the present criminal prosecution against the petitioner, which prima facie amounts to an abuse of the process of law. Besides this he contends that the petitioner had initiated eviction proceedings against respondent No.1 in S.C. No. 589/2012 and the Trial Court, in terms of a judgment dated 28.11.2018, directed respondent No.1 to quit and deliver vacant possession of the ground floor premises which was in his occupation. He contends that the said order was challenged by the respondent No.1 and his brothers and sisters in Civil Revision Petition No.30/2019, which too was dismissed in terms of an order dated 09.02.2021. He therefore contends that the respondent No.1 has abused the process of law by initiating criminal action against the petitioner and therefore the FIR registered against the petitioner is liable to be set aside. 6. The respondent No.1 though served with the notice has not appeared. 7. The learned High Court Government Pleader submits that the registration of the FIR against the petitioner - 6 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 was just and proper, in view of the allegations made by the respondent No.1, in the complaint. He therefore submits that the contents of the complaint require to be investigated so as to ascertain whether the allegations made against the petitioner are true or not. He therefore prayed that the petition be dismissed so as to enable the respondent No.2 to proceed with the investigation. 8. I have considered submissions of the learned counsel for the petitioner and the learned High Court Government Pleader for respondent No.2. 9. It appears from the records placed in this criminal petition that the respondent No.1 along with his brothers and sisters had earlier filed O.S No.2338/2012 for a declaration that the sale deed dated 10.04.2008 executed in favour of the petitioner is null and void. The said suit was dismissed on 19.12.2018 for non-prosecution and proceedings are underway for restoration of the suit. When the respondent No.1 was already before the Civil Court challenging the sale deed executed in favour of the petitioner, he could not have gone before the respondent No.2 alleging commission of offences - 7 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 under the Act, 2004 or under Sections 406, 23, 506 and 420 of IPC. The remedy available to the respondent No.1 was before the Civil Court in view of the fact that the sale deed was already executed in favour of the petitioner in respect of the property mentioned above. This apart, the respondent No.1 who was in possession of the ground floor of the property in question was evicted by the Civil Court in S.C. No.589/2012 which was confirmed in CRP No.30/2019. In view of the above, it is prima facie evident that the respondent No.1 has tried to give the case a criminal touch so as to harass the petitioner. 10. In that view of the matter, the impugned criminal action initiated against the petitioner deserves to be halted. Hence, this criminal petition is allowed. The FIR drawn against the petitioner in Crime No.67/2018 by the respondent No.2 for the offences punishable under Sections 3 and 4 of the Act, 2004 and Sections 406, 23, 506 and 420 of IPC is quashed. 11. It is, however, made clear that the quashing of the FIR would not affect the right, if any, of respondent No.1 in the civil suit filed by him. - 8 - HC-KAR NC: 2026:KHC:13227 CRL.P No. 871 of 2019 12. Pending interlocutory applications if any, do not survive for consideration and the same stands disposed off. Sd/- (R. NATARAJ) JUDGE HJ List No.: 1 Sl No.: 29