IN THE HIGH COURT OF KARNATAKA, BENGALURU

DATED THIS THE 09^TH DAY OF APRIL, 2021

BEFORE

THE HON’BLE MR.JUSTICE A.G.NIJAGANNAVAR

CRIMINAL PETITION NO.1970 OF 2021

BETWEEN:

1.

SRI. SHIVAJIRAO,

S/O. LATE SRI. GANGOJIRAO,

AGED ABOUT 55 YEARS,

SECRETARY,

MILK PRODUCERS

CO-OPERATIVE SOCIETY,

IPPADI, RESIDING AT IPPADI VILLAGE,

HUTHRI DURGA HOBLI,

KUNIGAL TALUK,

TUMKUR DISTRICT-572130.

2.

SRI. PRASANNA C.S.,

S/O. SHAMBASHIVARAO,

AGED ABOUT 32 YEARS,

PRESIDENT,

MILK PRODUCERS

CO-OPERATIVE SOCIETY,

IPPADI, RESIDING AT IPPADI VILLAGE,

HUTHRI DURGA HOBLI,

KUNIGAL TALUK,

TUMKUR DISTRICT-572130. ... PETITIONERS

(BY SRI. MAHESH B.J., ADVOCATE)

AND:

THE STATE BY

2

KUNIGAL POLICE STATION,

KUNIGAL TALUK,

TUMKUR DISTRICT,

REPRESENTED BY

STATE PUBLIC PROSECUTOR,

HIGH COURT OF KARNATAKA,

BENGALURU-560001. ... RESPONDENT

(BY SRI. MAHESH SHETTY, HCGP)

(BY SRI. RAHUL CARIYAPPA K.S., ADVOCATE FOR

IMPLEADING APPLILCANT ON I.A. I/2021)

****

THIS CRIMINAL PETITION IS FILED UNDER SECTION 438

CR.P.C., PRAYING TO ENLARGE THE PETITIONERS ON BAIL IN THE

EVENT OF THEIR ARREST IN CR.NO.39/2021 OF KUNIGAL POLICE

STATION, TUMAKURU FOR THE OFFENCE PUNISHABLE UNDER

SECTIONS 403, 406, 409, 468, 420 AND 120B OF IPC.

THIS PETITION COMING ON FOR ORDERS THIS DAY, THE

COURT MADE THE FOLLOWING THROUGH PHYSICAL HEARING:

ORDER

This petition is filed under Section 438 Cr.P.C. by accused

Nos.1 and 2 seeking anticipatory bail in the event of their arrest in

Crime No.39/2021 of Kunigal police station for the offences

punishable under Sections 403, 406, 409, 420, 468, 120B read with

Section 34 of IPC pending on the file of Principal Civil Judge and

JMFC, Kunigal, Tumkur.

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2.

The facts leading to this petition are that on a private

complaint filed by one Srinivas s/o Narayanappa, the JMFC, Kunigal

passed an order for taking cognizance by referring the matter for

investigation under Section 156(3) Cr.P.C. The allegations are that

the petitioners namely accused Nos.1 and 2 being the Secretary

and President of the society have misappropriated the funds of the

Milk Producers Co-operative Society of Ippadi village and have

withdrawn cash of Rs.76,00,000/- from 01.04.2018 to 08.06.2020

and no proper accounts have been maintained in respect of the

amount withdrawn for construction of the building, thereby the

accused have committed the offences.

3.

On registering the complaint the police officials are

making attempts to arrest the petitioners. The bail petition filed

before the Sessions Court has been rejected.

4.

Heard learned counsel for the petitioner and learned

High Court Government Pleader assisted by the counsel for

complainant. Perused the records.

5.

It is the contention of the learned counsel for the

petitioners that the allegations made in the complaint are false and

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baseless. Even though the site was purchased in the name of

Secretary by name Shivaji Rao, the katha has been transferred in

the name of society and even the panchayath records confirm that

the property purchased stands in the name of the society. In this

regard a resolution has been passed. The society has submitted

the audit report for the years 2018-19 and 2019-20 to the Registrar

of Co-operative Societies. But no enquiry has been initiated in

respect of these reports either regarding misappropriation of funds

or any irregularities committed in maintenance of books of

accounts. Thus the allegations made against these petitioners are

false and concocted. In view of Section 111 of the Karnataka State

Cooperative Societies Act. There is a need for sanction to

prosecute the office bearers, but no sanction has been obtained by

the complainant. Thus the order passed by the learned Magistrate

for investigation under Section 156(3) is not tenable. No enquiry

has been initiated by