2025 Supreme(Kar) 959
IN THE HIGH COURT OF KARNATAKA, AT DHARWAD
S. Vishwajith Shetty, J.
Shivakumar S/o Bhimappa Vaddar/Waddar and Ors. - Petitioners
Versus
The State of Karnataka and Ors. - Respondents
Criminal Petition No. 104153 of 2022
Decided On : 16-09-2025
For the Petitioner:Sri. Venkatesh M. Kharvi, Advocate
For the Respondent:Smt. Girija S. Hiremath, HCGP, Sri. Santosh B. Malagoudar, Advocate
The court reinforced that police have the authority to investigate cognizable offences, and dismissal of FIRs should occur only under rare circumstances when no crime is disclosed.
Headnote:(A) Indian Penal Code - Sections 420, 465, 468, and 471 - Legal framework concerning quashing of FIRs under Section 482 Cr.P.C. - The petitioners, accused of perpetrating fraud through forged documents, argue they are bonafide purchasers of disputed property; however, investigation is deemed necessary due to conflicting testimony regarding the forged General Power of Attorney. (Paras 3, 9-11)
(B) The law establishes that police possess the right and duty to investigate cognizable offences, and courts should not prevent investigations unless no offence is disclosed. Quashing of FIRs is rare and only permissible under extraordinary circumstances. (Paras 12-16)
Facts of the case:
The FIR alleges that the petitioners acquired property through fraudulent means based on a forged General Power of Attorney. The property owner claimed that the sale transactions lacked proper execution and that requisite payments were not made to them. (Paras 3-5)
Findings of Court:
The court finds that the prima facie case exists against the petitioners based on the ongoing investigation and the testimony regarding the authenticity of the General Power of Attorney; therefore, the petition to quash the FIR is dismissed. (Paras 12-17)
Issues: The main issues involve the legitimacy of the power of attorney and whether the petitioners had acted in good faith regarding property transactions. (Paras 10-11)
Ratio Decidendi: The court ruled that due to the gravity of the allegations and the necessity of factual determination through investigation, it cannot quash the FIR at this stage, as a prima facie case exists. The pendency of civil proceedings does not preclude criminal investigations. (Paras 12-16)
Result: Criminal Petition dismissed.
| Table of Content |
|---|
| 1. accused charged with property fraud. (Para 1 , 3) |
| 2. petitioners argue good faith in property purchase. (Para 4 , 6 , 7) |
| 3. contested validity of general power of attorney. (Para 8 , 9 , 10) |
| 4. allegations of collusion and forgery. (Para 11) |
| 5. legal standards for quashing firs. (Para 12 , 13 , 14 , 15 , 16) |
| 6. court denies petition to quash proceedings. (Para 17) |
ORDER :
S. Vishwajith Shetty, J.
Accused Nos.2 to 4 in Crime No.81/2022 registered by Karwar Town Police Station, for offences punishable under Sections 420 , 465, 468 and 471 r/w 34 of IPC, are before this Court under Section 482 of Cr.P.C. with a prayer to quash the entire proceedings in the aforesaid case registered against them.
2. Heard the learned counsel for the parties.
3. FIR in Crime No.81/2022 was registered by Karwar Town Police Station for the aforesaid offences against Shravan Ganesh and others based on the first information dated 12.10.2022 received from respondent No.2. Allegation against the accused is that, the property bearing Survey No.206/2B and 206/4 of which the first informant is the original owner has been sold by accused no.1 on the basis of a fraudulent and forged General Power of Attorney of the first informant, in favour of the petitioners herein under three separate sale deeds. Assailing the same, the petitioners who are arraigned as accused nos.2 to 4 in the FIR are before this Court.
4. Learned counsel for the petitioners submits that the petitioners are bonafide purchasers of the aforesaid land for valid sale consideration. Petitioners have paid the sale consideration under the sale deeds registered in their favour to accused no.1, which was transferred to his bank account. In the General Power of Attorney executed, it is specifically mentioned that accused no.1 is entitled to collect the sale consideration from the proposed buyers. Respondent no.2 has already filed OS No.23/2023 before the Jurisdictional Civil Court challenging the validity of the General Power of Attorney as well as the sale deeds executed by accused no.1 in favour of the petitioners based on the General Power of Attorney dated 15.07.2017.
5. In support of his arguments he has placed reliance on the judgment of this Court in the case of Rudraswamy v. State of Karnataka reported in ILR 2022 KARNATAKA 1055.
6. Per contra, learned HCGP and learned counsel for the respondent no.2 have opposed the petition. They submit that FIR has been registered for cognizable offences and therefore, investigation is necessary to find out the correctness and genuineness of the allegations found in the first information.
7. Learned counsel for respondent no.2 submits that in OS No.23/2023, the attesting witnesses of the General Power of Attorney in question have been examined and they have denied the execution of the said document and also about the signing of the said document as attesting witnesses. Undisputedly, sale consideration was not paid by the petitioners to respondent no.2, who is the undisputed owner of the property, which has been purchased by the petitioners under the disputed sale deeds. Accordingly, they pray to dismiss the petition.
8. The material on record would go to show that undisputedly, respondent no.2 is the owner of the aforesaid two items of property, which are sold in portion by accused no.1 in favour of the petitioners herein under the three separate registered sale deads based on the disputed General Power of Attorney dated 15.07.2017, said to have been executed by respondent no.2 in favour of accused no.1. It is also not in dispute that the sale consideration under three disputed sale deeds has not been paid to respondent no.2 who is the real owner of the said properties and on the other hand, sale considerations are allegedly paid by the petitioners through bank transactions in favour of accused no.1, who claims to be the General Power of Attorney holder of respondent no.2.
9. Learned counsel for respondent no.2 has submitted that the disputed Genera