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2024 Supreme(Online)(KAR) 8969

HIGH COURT OF KARNATAKA
S VISHWAJITH SHETTY, J
NARAYANAMURTHY S/O LATE M.K. MUNISWAMY – Appellant
Versus
STATE OF KARNATAKA – Respondent
CRIMINAL PETITION NO. 8434 OF 2023 | CRIMINAL PETITION NO. 12261 OF 2023



Advocates:
For the Appellants/Petitioners: B A KRISHNA KUMAR, S. SRI VASANTH MADHAVA
For the Respondents: SMT. K.P. YASHODHA, SRI VIJAYAKUMARA

Criminal proceedings cannot be sustained when the underlying matter is civil in nature, preventing misuse of the criminal justice process.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Petition to quash criminal proceedings - Petitioners challenged FIR registered under Sections 406, 419, 465, 468, 471, 120B IPC; Consent for property sale was not disputed - Entire payment acknowledged under sale deed; Court emphasizes protection against misuse of criminal process for civil disputes. (Paras 1, 12, 14)

(B) Criminal Law - Abuse of Process - Court highlights necessity to prevent abuse of judicial process when civil matters are mischaracterized as criminal, reiterating that continuation of such proceedings amounts to abuse of process of law. (Paras 12, 13)

Facts of the case:
Complainant alleged fraud in property transaction concerning sale for Rs.2 Crores while claiming lack of receipt of complete payment. Court determined that funds were paid and civil nature of dispute warranted quashing of criminal charges.

Findings of Court:
The court deemed the allegations unfounded, indicating that the recorded evidence of financial transactions nullified the basis for criminal charges.

Issues: The court underscored whether criminal proceedings are justifiable given existing civil actions surrounding the property sale and payment complaints.

Ratio Decidendi: The court ruled against continuation of criminal proceedings as they were deemed abusive, affirming that existing civil resolutions should precede potential criminal implications.

Result: Petitions allowed.

Table of Content
1. court discusses the process of quashing criminal proceedings. (Para 1 , 2)
2. facts surrounding property sale and payment are presented. (Para 3 , 4 , 5 , 7 , 8 , 9 , 10 , 11)
3. legal arguments opposing the claims of fraud are discussed. (Para 6)
4. court reiterates that civil matters must remain distinct from criminal proceedings. (Para 12 , 13)
5. conclusion to quash the fir based on found merits. (Para 14)

ORDER

1. Accused nos.1 to 5, 7 to 10 and 12 to 14 have filed these two criminal petitions under Section 482 Cr.PC with a prayer to quash the entire proceedings in Crime No.67/2023 arising out of PCR No.1335/2023 pending before the Court of IV Addl. Chief Metropolitan Magistrate, Bengaluru, registered for the offences punishable under Sections 406, 419, 465, 468, 471, 120B IPC.

2. Heard the learned Counsel for the parties.

3. Respondent no.2/complainant herein has filed a private complaint in PCR.No.1335/2023 before the IV Addl. Chief Metropolitan Magistrate, Bengaluru, against the petitioners herein and two others alleging that the complainant and his estranged wife had decided to dispose of their joint property and accused no.4 who is the father-in-law of the complainant negotiated with the local goons accused nos.5 to 11 only for a sum of Rs.2 Crores though the property was worth more than Rs.6.5 Crores. Since the complainant was fed up and desperate after his marriage with his wife had failed, he agreed to sell the joint property to accused nos.1 to 3 for a sum of Rs.2 Crores, and accordingly, a sale deed was also executed and registered in the office of the Sub-Registrar, Shivajinagar, on 31.08.2020 and the total sale consideration of the property was shown as Rs.2 Crores. Prior to the execution of the sale deed, complainant had received a total sum of Rs.35 lakhs as advance from accused nos.1 to 3. According to the complainant, accused nos.1 to 3 were required to pay balance sale consideration of Rs.1,40,00,000/- and though in the sale deed it is shown that the balance consideration has been paid through bank transactions, complainant has not received the said amount. It is in this background, he had allegedly approached the police, who according to the complainant, had failed to take any action, and therefore, he had filed a private complaint before the Court of jurisdictional Magistrate in PCR.No.1335/2023.

4. The learned Magistrate by order dated 18.10.2023 had referred the complaint under Section 156(3) Cr.PC to the jurisdictional police station. FIR in Crime No.67/2023 was thereafter registered by Indiranagar Police Station, Bengaluru City, for the aforesaid offences against the petitioners and two others. Being aggrieved by the same, the petitioners are before this Court.

5. Learned Counsel for the petitioners submits that the entire sale consideration of Rs.2 Crores has been paid through bank transaction and particulars of such payment are found in the sale deed dated 31.08.2020. He submits that respondent no.2/complainant has already approached the Civil Court seeking cancellation of sale deed dated 31.08.2020 and only with an intention to coerce and harass the petitioners, he has filed a false complaint. He submits that 50% of the payment under the sale deed is made to the wife of the complainant and she has not made any complaint regarding non-payment. Complainant had earlier approached the police and in the complaint filed before the police, he had stated that the cheques and demand drafts issued to him had expired and had prayed to direct the accused to issue fresh demand drafts and cheques. He submits that petitioner and his wife had earlier entered into an agreement for sale on 27.02.2020 and under the said agreement, a sum of Rs.70 lakhs was paid to them and the balance amount is paid through bank transactions as mentioned in the sale deed 31.08.2020. He submits that the Civil Court taking this aspect of the matter into consideration, has vacated the ex-parte order of temporary injunction w

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