IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30^TH DAY OF JULY, 2025 BEFORE THE HON'BLE MS. JUSTICE J.M.KHAZI CRIMINAL PETITION NO. 8382 OF 2018 (482(Cr.PC) / 528(BNSS))

BETWEEN:

1. SRI. PARAMANAND SINGH S/O RAMAKRISHNA SINGH AGED ABOUT 66 YEARS

2. SMT GAYATHRI P. SINGH W/O PARAMANAND SINGH AGED ABOUT 50 YEARS BOTH ARE R/AT NO. 136, BAZZAR STREET, ULSOOR, BENGALURU - 560008.

ALSO AT NO.12, 1ST MAIN, 3RD CROSS ASHWINI LAYOUT EJIPURA BENGALURU-560047 Digitally signed by REKHA R …PETITIONERS Location: Hig h Court of Karnataka (BY SRI. JOSE SEBASTIAN, ADVOCATE)

AND:

1. STATE OF KARNATAKA BY ULSOOR POLICE STATION ULSOOR, BENGALURU-560038 REPRESENTED BY SPECIAL PUBLIC PROSECUTION HIGH COURT OF KARNATAKA, BANGALORE-01

2. INDIABULLS HOUSING FINANCIAL LTD., NO.81, TEMPLE ROAD, MALLESHWARAM, BENGALURU - 560003 REPRESENTED BY MR.M.B.CHENAJAPPA, AUTHORIZED OFFICER.

…RESPONDENTS (BY SRI.VINAY MAHADEVAIAH, HCGP FOR R1; SRI.CHINTAN CHINNAPPA, ADVOCATE FOR R2)

THIS CRL.P IS FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING TO QUASH OR SET ASIDE THE ENTIRE PROCEEDING IN C.C.NO.50746/2013 OF THE FILE OF X ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, AT MAYOHALL, BENGALURU INCLUDING THE COMPLAINT FIR AND CHARGE SHEET.

THIS PETITION, COMING ON FOR DICTATING ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MS. JUSTICE J.M.KHAZI

ORAL ORDER

Petitioners who are arraigned as accused Nos.1 and

2 have filed these petitions under Section 482 Cr.P.C, with a prayer to quash criminal proceedings initiated against them in C.C.No.50746/2013 on the file of X ACMM, Mayohall, Bengaluru, for the offence punishable under Section 420 r/w Section 34 of IPC.

2. In support of the petition, petitioners have contended that the uncontraverted allegations made in the complaint coupled with the documents relied on do not disclose or constitute the commission of offences alleged. Complainant i.e., India Bulls Housing Financial Limited ('IBHFL' for short) is a total stranger to the loan transaction which took place during March 2008. It is between petitioners and India Bull Financial Services Limited ('IBFSL' for short). Respondent No.2 IBHFL is a securitization company, who being alien to the loan transaction, claiming right subsequent to the materialization of loan transaction has filed complaint, wherein there is no interaction between it and petitioners, which will not make out a case for trial.

3. The allegations made in the complaint are absurd and inherently improbable to commit the offence. The allegations are invented by respondent No.2 IBHFL. There was no proximity or interaction or any friction or dealing so as to invent an offence of cheating against the petitioners. The entire documents relied on and referred to in the complaint establishes that the loan transaction was between the petitioners and IBHFL. In the absence of respondent No.2 IBHFL being party to the transaction, complaint is not maintainable.

3.1 The complaint averments coupled with documents do not make out a case to go on with the trial. Respondent No.2 IBHFL has not established any offence against the petitioners. It is respondent No.2 IBHFL which has played fraud and stratagem in stealthily claiming to have taken over loan transaction. Posing as a secured creditor, it has initiated proceedings under SARFAESI Act and taken physical possession of the property. It has resisted the petitioners by filing writ petition, application before DRT and comprehensive suit. Due to similarity of the names, charge sheet is filed and without examining the same, the trial Court has ordered for framing of charge. Though it is claimed that loan of Rs.1,37,00,000/- was granted, only Rs.33,16,854/- was released and remaining Rs.1,00,00,000/- was appropriated by IBFSL in collusion with City Financial. Thereafter, with the assistance of IBHFL, it has invoked provisions of SARFESI Act. The alleged sale agreement purported to have obtained by Dr.Thambaiah Sundaram is only a hand loan transac