2025 Supreme(Kar) 910
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
SACHIN SHANKAR MAGADUM, J.
Smt. Shaik Nowhera D/o Late Shaik Nanne Saheb - Appellant
Versus
M/s 1-Help Technology And Software Solutions Pvt Ltd. - Respondent
CRIMINAL PETITION NO. 6013 OF 2025 C/W CRIMINAL PETITION NO. 6015 OF 2025, CRIMINAL PETITION NO. 6017 OF 2025, CRIMINAL PETITION NO. 6019 OF 2025, CRIMINAL PETITION NO. 6020 OF 2025, CRIMINAL PETITION NO. 6025 OF 2025, CRIMINAL PETITION NO. 6028 OF 2025, CRIMINAL PETITION NO. 6030 OF 2025, CRIMINAL PETITION NO. 6347 OF 2025, CRIMINAL PETITION NO. 6354 OF 2025, CRIMINAL PETITION NO. 6361 OF 2025, CRIMINAL PETITION NO. 6371 OF 2025, CRIMINAL PETITION NO. 6373 OF 2025, CRIMINAL PETITION NO. 6381 OF 2025, CRIMINAL PETITION NO. 6383 OF 2025, CRIMINAL PETITION NO. 6390 OF 2025, CRIMINAL PETITION NO. 6391 OF 2025
Decided on : 03-09-2025
Important Points
Subject
Commercial Law - Negotiable Instruments
Act Referred
BHARATIYA NAGARIK SURAKSHA SANHITA : S.223, S.401
CRIMINAL PROCEDURE CODE : S.319, S.357(3)
Headnote
(B) The court highlighted that the primary object of Section 138 is to uphold credibility in financial dealings, ensuring enforceability of liabilities through sufficient notice to the drawer, thereby protecting honest creditors from undue hardship. (Paras 18, 19)
(C) The statutory framework imposes vicarious liability on company officers for actions undertaken in their official capacity, aligning personal and corporate culpability in financial transactions. (Paras 12, 14, 15)
(D) Judicial precedence outlines that arraigning the company is necessary but defects in party description may be addressed rather than outright dismissal, ensuring justice is served without sacrificing legislative intent. (Paras 19, 20)
For the Appellant :SRI. CHANDPASHA, ADVOCATE)
For the Respondent:SRI. MAHAMMAD ANWAR, ADVOCATE
| Table of Content |
|---|
| 1. quashing of proceedings for dishonoured cheques (Para 1 , 2 , 3 , 4) |
| 2. defences raised by accused in proceedings (Para 5 , 6 , 7) |
| 3. court's reasoning on notice and procedural compliance (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18) |
| 4. importance of valid service of notice and curability (Para 19) |
ORDER :
SACHIN SHANKAR MAGADUM, J.
These batch of petitions are taken up together as identical issue is raised in all these petitions filed by the common accused seeking quashing of the proceedings in C.C.No.994/2025(arising out of PCR.No.70/2025), C.C.No.2198/2025(arising out of PCR.No.102/2025), CC.No.996/2025(arising out of PCR.No.68/2025), CC.No.2199/2025(arising out of PCR.No.101/2025), CC.No.2201/2025(arising out of PCR.No.99/2025, CC.No.2200/2025(arising out of PCR.No.1200/2025), CC.No.991/2025(arising out of PCR.No.71/2025), CC. No.997/2025 (arising out of PCR.No.69/2025), CC.No.1200/2025(arising out of PCR.No.98/2025), CC.No.988/2025(arising out of PCR.No.72/2025), CC.No.2196/2025(arising out of PCR.No.106/2025), CC.No.1198/2025(arising out of PCR.No.96/2025), CC.No.2194/2025(arising out of PCR.No.108/2025), CC.No.2197/2025(arising out of PCR.No.105/2025), CC.No.1201/2025(arising out of PCR.No.97/2025), CC.No.1199/2025(arising out of PCR.No.94/2025), CC.No.2195/2025(arising out of PCR.No.107/2025) pending on the file of I Additional Civil Judge and JMFC, Shivamogga, for the offence punishable under Section 138 of Negotiable Instruments Act, 1881 (for short "N.I.Act").
2. The private complaints in the present batch are filed by M/s. 1-Help Technology and Software Solutions invoking Section 223 of the Bharatiya Nagarika Suraksha Sanhita, 2023 (BNSS, 2023) read with Sections 138 and 142 of the N.I. Act, alleging commission of offences punishable under Section 138 of the said Act. The case of the complainant is that the cheques issued by the CEO and Managing Director of Heera Group of Companies towards discharge of liability came to be dishonoured. In all, seventeen cheques were issued, and consequently, seventeen separate complaints have been instituted.
3. The substance of the complaints is that the respondent/complainant is a software company engaged in designing, developing, marketing software products, running call centres, and maintaining social media accounts of political parties and other public figures, having operations throughout India. According to the complainant, the petitioner/accused entered into an agreement for development of software, under which the petitioner/accused was required to pay a sum of Rs.9,84,24,292/-.
4. It is the case of the respondent/complainant that the project entrusted to it was duly accomplished. Despite repeated demands and execution of several Memorandum of Understanding, the petitioner/accused failed to discharge its liability. Eventually, cheques were issued by the petitioner/accused which, upon presentation, were dishonoured.
5. The petitioner/accused company, however, has taken a common defence in all petitions. It is contended that the respondent/complainant was engaged only on a contractual basis to create a website and manage social media platforms of the petitioner/accused. Further, it is alleged that the respondent/complainant directly collected funds from the public in the name of the petitioner/accused and transferred them to its own accounts, and that the cheques in question were misused by the Directors of the complainant company. On such grounds, the petitioner seeks quashing of proceedings, asserting that no offence under Section 138 of the N.I. Act is made out.
6. Learned Senior Counsel appearing for the petitioner/accused has placed reliance on the judgment of the Hon’ble Supreme Court in Himanshu .vs. B. Shivamurthy and another, [(2019) 3 SCC 797] to contend that the complaints as framed are not maintainable. It is urged that since the company itself has not been arraigned as an accused, the entire proceedings stand vitiated, and such a defect