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2024 Supreme(Online)(Kar) 37556

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF JULY, 2024 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA CRIMINAL PETITION NO. 1925 OF 2024 BETWEEN:

M.B. MANJUNATHA, S/O BAIREGOWDA, AGED ABOUT 68 YEARS, R/O HOSANAGARA ROAD, RIPPONPETE, HOSANAGARA TALUK …PETITIONER (BY SRI. PRASAD B.S, ADVOCATE)

AND:

THE STATE OF KARNATAKA REPRESENTED BY RIPPONPETE POLICE STATION, REPRESENTING BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU - 560 001.

Digitally signed …RESPONDENT by NAGAVENI Location: HIGH (BY SRI. THEJESH P, HCGP)

COURT OF KARNATAKA THIS CRL.P IS FILED U/S 482 OF CR.P.C., PRAYING TO QUASH ENTIRE PROCEEDINGS IN C.C.NO.49/2023 PENDING IN THE FILE OF SENIOR CIVIL JUDGE AND J.M.F.C AT HOSANAGARA FOR THE OFFENCE P/U/S 420 OF IPC AND SEC.39 OF KARNATAKA MONEY LENDERS ACT AND SECTIONS 3 & 4 OF KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT.

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

The petitioner is before this Court, seeking for the following prayers:

"Wherefore it is humbly prayed that this Hon'ble High court may be pleased to quash entire proceedings in CC.No.49/2023 pending in the file of Senior Civil Judge and JMFC at Hosanagara for the offences punishable under section 420 of IPC, Sec.39 of Karnataka Money Lenders Act and Sec.3, 4 of Karnataka Prohibition of Charging Exorbitant interest Act 2004, in the interest of justice and equity. "

2. Heard Shri B.S.Prasad, learned counsel appearing for the petitioner and Shri P.Thejesh, the learned HCGP appearing for the respondents.

3. Both learned counsel appearing for the petitioners and learned HCGP, in unison, would submit that the issue in the lis stands covered by the judgment rendered by this Court in the case of MAHADEVAIAH Vs. THE STATE OF KARNATAKA AND ANOTHER.1, this Court has held as follows:

1 CRL.P.No.6886/2020 disposed on 08.03.2022

"The petitioner is before this Court calling in question proceedings in C.C.No.4396/2017 registered for offences punishable under Sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 and Sections 5 and 39 of the Karnataka Money-Lenders Act, 1961.

2. The petitioner is accused No.3 in the case at hand. Accused Nos.1 and 2 had approached this Court in Crl.P.No.2710/2018 against whom the very offences were alleged in the very same crime. A Co- ordinate Bench of this Court by an order dated 14.02.2020 has allowed the petition and quashed the proceedings against accused Nos.1 and 2. A Co-ordinate Bench of this Court in Crl.P.No.2710/2018 dated

14.02.2020, has held as follows:

“4. The facts leading to the case are that respondent No.2 registered a case on 06.08.2015 alleging that the accused persons were doing chit transaction and requested the respondent/complainant to join for the same and further stated that they would give money to her and she can give it to others for interest and to return etc. It is further alleged that accordingly, respondent/complainant used to receive amount from accused Nos.1 and 2 and used to give amount to others on interest through pronote. It is further alleged that petitioners gave Rs.1,00,000/- for interest and at the time of returning the same,- 4 - complainant’s father was suffering with heart ailment and she could not able to return the same in time hence, petitioners quarreled with respondent/complainant and her family members. She has given three blank cheques for security and has also paid Rs.1,00,000/- towards due amount and the same has been en-cashed on 09.08.2014. It is further alleged that in order to get illegal gain, on 26.12.2014 they have got filled the cheque for Rs.3,20,000/- and instituted a case and also received the summons for charging exorbitant interest. On the basis of the complaint, a case has been registered and after investigation, a charge sheet has been filed.

5. It is the contention of the learned counsel for petitioners/accused Nos.1 and 2 that as per Section 5 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 aggrieved person, who claimed to have been charged with exorbitant interest has to- 5 - approach the Jurisdictional Court by filing a petition under Section 5 of the Act and seek redressal about his grievances. Instead of doing so, in the present case respondent/complainant has filed a complaint before the police in violation of Section 5 of the said Act. It is his further submission that the entire proceedings which have been initiated and the charge sheet filed is nothing but an abuse of process of law. Further it is submitted that already the proceedings have been initiated under Section

138 of the Negotiable Instruments Act, 1881 and only with an intention to take revenge, the present compliant has been filed. It is his further submission that already this Court under similar facts and circumstances of the case has allowed the petition in W.P. No.29499/2017 dated 06.01.2020 and quashed the proceed

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