Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(Tel) 16373

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Tirumala Devi Eada, J
R.R.M. Educational Society – Appellant
Versus
State of Telangana – Respondent
CRIMINAL PETITION No.2246 OF 2020

Advocates:
For the Appellants/Petitioners: Sricharan Telaprolu
For the Respondents: Tarun G.Reddy

Criminal proceedings against current members of a society for acts of previous management cannot be quashed under inherent powers, as the determination of vicarious liability and disputed factual issues regarding internal management and document authenticity are matters to be adjudicated during trial.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 141 - Dishonour of cheque - Vicarious liability - Quashing of proceedings - Whether current members of a society are liable for acts of previous management - Held, liability of members for acts of previous management is a triable issue and cannot be determined in proceedings under Section 482 of CrPC - Internal affairs and role of members in day-to-day management are matters for trial. (Paras 8, 11, 23, 24, 27)

(B) Criminal Procedure Code, 1973 - Section 482 - Inherent powers of High Court - Scope - Power to quash proceedings should be exercised sparingly and with circumspection - Court cannot conduct a mini-trial or roving inquiry into disputed questions of fact - Genuineness of documents and internal management disputes are to be adjudicated during trial. (Paras 16, 24, 27)

Facts of the case:
The petitioners, current members of a society, sought to quash criminal proceedings initiated for the dishonour of a cheque issued by the previous management. They contended that they were not members at the time of the transaction, the debt was based on fabricated byelaws, and they were not responsible for the conduct of the society's business at the relevant time.

Findings of Court:
The court observed that the allegations in the complaint established a prima facie case. The determination of whether the current members are vicariously liable for the acts of the previous management, and the validity of the underlying documents, involves disputed questions of fact that must be resolved through evidence during the trial.

Issues: Whether the criminal proceedings against the current members of the society should be quashed in the absence of their involvement at the time of the cheque's issuance and whether the validity of the society's byelaws can be determined in a quashing petition.

Ratio Decidendi: The court held that the liability of members for the acts of a society is a triable issue. Inherent powers under Section 482 of the CrPC cannot be used to conduct a mini-trial or resolve disputed questions of fact regarding the internal management or the genuineness of documents.

Result: Petition disposed of; proceedings not quashed; personal attendance of petitioners dispensed with.

Table of Content
1. nature of the criminal petition and factual history of the society's debt. (Para 1 , 2)
2. parties' contentions regarding vicarious liability and maintainability of the complaint. (Para 3 , 4 , 5 , 6)
3. triability of internal management disputes and vicarious liability under section 141 ni act. (Para 7 , 8 , 9 , 10 , 20 , 21 , 22 , 23 , 24 , 25 , 27)
4. judicial precedents governing vicarious liability of directors/members under nil act. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 26)
5. orders dispensing with personal attendance of petitioners. (Para 28)

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA CRIMINAL PETITION No.2246 OF 2020 Date: 21.04.2026 Between:

M/s.R.R.M. Educational Society Rep. by its President & Secretary, Mr.Kedari Joseph Sriharsha Shashank and others … Petitioners/

Accused AND The State of Telangana, rep. by its Public Prosecutor, High Court for the State of Telangana at Hyderabad and another … Respondents ::ORDER::

This Criminal Petition is filed by the petitioners – accused seeking to quash the proceedings in C.C.No.5247 of 2022 on the file of the learned Special Judicial Magistrate of First Class (Mobile) under PCR Act-cum-II Additional Junior Civil Judge at Hanumakonda, Hanumakonda District, registered for the offences under Section 138 read with Section 142 of Negotiable Instruments Act.

2. The case of the complainant is that accused No.1 is a registered Educational Society represented by its President and Secretary Mr.Kedari Joseph Sriharsha Shashank, who is arrayed as accused No.2, accused No.3 is the Vice President and Treasurer, accused No.4 is the Joint Secretary, accused No.5 is the correspondent, accused Nos.6 to 8 are the members of the accused society. It is submitted that the accused society was not having its own building to run its college, hence, the then management committee during 2008 intended to purchase the property in the name of M/s.R.R.M.Educational Society for the purpose of having its own independent premises. Consequently, the then management committee has purchased a building with a constructed area of 75000 sft over an area of Ac.08-00 at Patancheru by way of registered sale deed from M/s.Trans Asia Overseas Trading Corporation for a total sale consideration of Rs.14,50,00,000/-. M/s.R.R.M.Educational Society was not having its own resources to meet the sale consideration and thus, it decided to raise loans from the complainant society i.e. Aurora Educational Society, Ravi Rishi Educational Society, Karshak Vidya Parishad and from their sponsored colleges and also from one Mrs.Yashoda, W/o.late N.Seethaiah. It is the further case of the complainant that M/s.R.R.M.Educational Society has passed a resolution to raise a loan amount of Rs.15,87,258/- from the complainant society and that M/s.R.R.M.Educational Society also resolved to repay the above said loan amount of Rs.15,87,258/- to the complainant society on interest free basis by October, 2018. Consequently the complainant society has passed a corresponding resolution to accept the repayment of above said loan on interest free basis within the stipulated time. That acknowledging the receipt of loan amount of Rs.15,87,258/- from the complainant society, the M/s.R.R.M.Educational Society represented by it’s the then authorized signatory who is accused No.9 has issued a postdated cheque dated 15.10.2018 to the complainant society, drawn on IDBI Bank, Basheerbagh branch for a sum of Rs.15,87,258/-. It is further submitted that in pursuance to an understanding to transfer the management of M/s.R.R.M.Educational Society, accused Nos.2 to 4 were admitted as members of the society with effect from 28.12.2012 and a new managing committee consisting of accused Nos.2 to 4 were elected with effect from 05.09.2013. Consequently, the old committee members of M/s.R.R.M.Educational Society including accused No.9 resigned from the executive committee and from the pri

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2026 Supreme(Online)(Tel) 16373

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABADTirumala Devi Eada, JR.R.M. Educational Society – AppellantVersusState of Telangana – RespondentCRIMINAL PETITION No.2246 OF 2020

Cases Referred (3)

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Tirumala Devi Eada, J
R.R.M. Educational Society – Appellant
Versus
State of Telangana – Respondent
CRIMINAL PETITION No.2246 OF 2020