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2026 Supreme(Online)(Kar) 8002
THE HIGH COURT OF KARNATAKA
M. Nagaprasanna, J
Winzo Games Private Limited – Appellant
Versus
State of Karnataka – Respondent
CRIMINAL PETITION No.10707 OF 2024
For the Appellants/Petitioners: Sajan Poovayya, Amith Nayak
For the Respondents: B.N. Jagadeesha
An FIR registered for the offence of cheating under the Penal Code cannot be maintained against an entity if the complaint lacks evidence of fraudulent or dishonest intention at the inception, or if the allegations are inherently improbable and fail to disclose the essential ingredients of the charged offences.
Headnote:(A) Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 528 - Indian Penal Code, 1860 - Section 420 - Information Technology Act, 2000 - Sections 66C and 66D - Quashing of FIR - Criminal proceeding - Abuse of process - Essential ingredients of cheating - To constitute an offence of cheating, there must be a fraudulent or dishonest intention at the time of making the representation or promise, and mere failure to act is insufficient. (Paras 8, 9, 10)
(B) Criminal Procedure - Quashing of proceedings - Extraordinary power - Where allegations are inherently improbable or do not disclose a cognizable offence against the accused, the Court is mandated to exercise its inherent jurisdiction to prevent abuse of the process as established in State of Haryana v. Bhajan Lal. (Paras 9, 26)
Facts of the case:
The petitioner is a digital gaming platform company. A complaint was filed alleging that a third party had misused the complainant's identity details by creating an account on the petitioner's platform, leading to unauthorized tax entries. The petitioner, despite being the entity that informed the complainant of the potential misuse and offered cooperation to rectify the records, was named as an accused in the FIR for offences of cheating and violations of the Information Technology Act.
Findings of Court:
The court observed that the petitioner is not the perpetrator of the identity theft and that no dishonest intention can be attributed to the company at the inception of its contractual relationship with the user. The primary ingredients of 'cheating' under Section 420 of the IPC, such as inducement and dishonest intent, are absent in the allegations against the petitioner.
Issues: Whether the registration and continuation of criminal proceedings against the petitioner are legally sustainable given the lack of evidence of criminal intent or involvement in the identity theft.
Ratio Decidendi: Criminal proceedings cannot be permitted to continue where the allegations do not prima facie constitute an offence or where the accused is not shown to have had the necessary mens rea at the time of the alleged transaction. Using criminal law as a tool for harassment or for purposes not supported by the facts stated in the complaint constitutes an abuse of the process of law, justifying intervention under inherent powers.
Result: Criminal Petition allowed; FIR quashed qua the petitioner.
| Table of Content |
|---|
| 1. factual background involving alleged pan card misuse on a gaming platform and subsequent police complaint. (Para 1 , 3 , 7) |
| 2. parties' contentions regarding liability for third-party criminal misuse of identity on digital platforms. (Para 4 , 5) |
| 3. legal requirements to establish cheating under section 420 ipc and the criteria for quashing criminal proceedings under bhajan lal principles. (Para 6 , 8 , 9 , 10) |
| 4. final order quashing the fir against the petitioner while preserving the investigation against actual perpetrators. (Para 11) |
Reserved on : 23.01.2026
Pronounced on : 21.02.2026
THIS CRIMINAL PETITION IS FILED UNDER SECTION 528 OF BNSS, 2023, PRAYING TO PASS AN ORDER AND QUASH THE FIR IN CRIME NO.413/2024 DATED 04.07.2024 OF CENTRAL CEN P.S., PENDING ON THE FILE OF THE LEARNED 45th ACMM NRUPATUNGA ROAD, BENGALURU CITY REGISTERED FOR THE OFFENCES P/U/S 420 OF IPC 1860 AND UNDER SECTION 66C, 66D OF INFORMATION TECHNOLOGY ACT, 2008.
THIS CRIMINAL PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 23.01.2026, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING:-
CAV ORDER
1. The petitioner is before this Court calling in question registration of a crime in Crime No.413 of 2024 registered for offences punishable under Section 420 of the IPC and Sections 66C and 66D of the Information Technology Act, 2000 (‘the Act’ for short).
2. Heard Sri Sajan Poovayya, learned senior counsel appearing for the petitioner and Sri B.N. Jagadeesha, learned Additional State Public Prosecutor appearing for the 1st respondent.
3. Facts in brief, germane, are as follows: -
3.1. The petitioner-Company is a prominent digital entertainment, gaming and technology Company established in the year 2016. It operates a digital gaming platform called ‘WinZo’ since February 2017, it is said to be a vernacular entertainment platform providing diverse range of skill-based games including free to play games. WinZo is said to have emerged as a leading gaming platform in India. The complainant alleges that her PAN card details were published online on a digital document platform called www.scribd.com. The PAN details of the complainant are said to have been stolen and misused by certain individuals on the petitioner’s platform. Therefore, the complainant seeks the help from the jurisdictional police to ensure that PAN details of the complainant are removed and also to remove the TDS entries in her Form-26AS.
3.2. On 29-06-2024, the complaint comes to be registered before the jurisdictional police. The complainant through an electronic mail shared her details with the petitioner and further details about the incident. The petitioner responds to the complainant via e-mail and seeks to rectify after a formal complaint with the Competent Authority. The complainant also shares a screen shot of the cyber complaint filed by her against the misuse of the PAN card. On 04-07-2024, the crime in Crime No.413 of 2024 comes to be registered based on the complaint of the complainant. The petitioner then communicates an e-mail to the competent authority informing about the incident as well as steps taken to rectify as sought by the complainant. By then, the crime had been registered against the petitioner and Scribd. Registration of the crime drove the petitioner to this Court in the subject petition. On 26-11-2024, this Court grants an interim order of stay and when the matter was again listed on 07-01-2026 investigation was permitted to be conducted and the matter is heard thereafter.
4. The learned senior counsel Sri Sajan Poovayya appearing for the petitioner would vehemently contend that the issue is about loss of ₹1200/- on the alleged misuse of PAN card of the complainant. Beyond this there is no allegation against the petitioner. PAN card is said to have been published on a public platform called ‘scribd’. The petitioner has not published on its website, but certain perpetrators are said to have used it on the petitioner’s website. I
