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IN THE HIGH COURT OF KARNATAKA

DHARWAD BENCH

DATED THIS THE 20^TH DAY OF JULY 2021

BEFORE

THE HON’BLE MRS.JUSTICE M.G.UMA

CRIMINAL PETITION NO.100101/2020

BETWEEN

SHRI.RENUKAYYA

S/O SOMESHEKRAYYA SHASTRI

AGE: 57 YEARS,

OCC: EMPLOYEE and SECRETARY,

PERFECT URBAN CO-OP CREDIT

SOCIETY LTD., ILKAL,

(A CO-OPERATIVE SOCIETY REGISTERED

UNDER THE REGISTERED KARNATAKA

CO-OPERATIVE SOCIETIES ACT, 1959

ILKAL, TQ: ILKAL,

DIST: BAGALKOTE,

ILKAL-587 125.

…PETITIONER

(BY SRI.NARAYAN G RASALKAR, ADVOCATE)

AND

1.

ANAND S/O GANGAPPA NALAWADAD

AGE: 41 YEARS, OCC: BUSINESS,

WARD NO.6,

GANDHI CHOWK,

ILKAL, TQ: ILKAL,

DIST: BAGALKOTE.

2.

PERFECT URBAN CO-OP

CREDIT SOCIETY LTD., ILKAL

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(A CO-OPERATIVE SOCIETY REGD.

UNDER THE KARNATAKA CO-OPERATIVE

SOCIETIES ACT, 1959,

REP. NOW BY ITS ASSISTANT SECRETARY,

SRI.SHABBIR AHAMAD

S/O DAVALSAB BAGWAN,

AGE: 40 YEARS,

ILKAL, ILKAL TALUK,

DIST BAGALKOTE,

ILKAL-587 125.

…RESPONDENTS

(BY SRI.A.R.PATIL, AMICUS CURIE)

THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C.

PRAYING TO QUASH THE CRIMINAL PROCEEDINGS INITIATED

UNDER

SEC.

138

OF

NI

ACT,

IN

THE

COURT

OF

THE

ADDTITIONAL CIVIL JUDGE AND JMFC, HUNGUND, IN CC

NO.251 OF 2019.

THIS CRIMINAL PETITION COMING ON FOR ADMISSION

THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER

Though the petition is listed for admission, with

the consent of learned counsel for both the parties, it

is taken up for final disposal.

2.

The petitioner is before this Court seeking to

quash the criminal proceedings initiated against him,

in C.C.No.251/2019, for the offence punishable under

Section 138 of Negotiable Instrument Act (for short,

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‘N.I. Act’), before the learned Additional Civil Judge

and JMFC, Hungund (for short, the ‘trial Court’).

3.

Brief

facts

of

the

case

are

that

the

respondent as complainant filed the private complaint

in PC No.20/2019 before the trial Court alleging

commission of the offence punishable under Section

138 of N.I. Act against the accused i.e. Perfect Urban

Co-operative Credit Society Limited (for short, ‘the

Society’)

represented

by

its

Chief

Executive

Officer/Secretary-Sri.Renukayya

i.e.

the

present

petitioner.

The

trial

Court

vide

its

order

dated

23.02.2019 took cognizance of the offence, ordered to

register the criminal case and issued summons to the

accused. Accordingly, C.C.No.251/2019 was registered

and the accused was summoned to appear before the

Court. Thus, the petitioner is before this Court

seeking to quash the criminal proceedings initiated

against him by the respondent.

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4.

Heard

Sri.Narayan

G

Rasalkar,

learned

counsel for the petitioner and Sri.A.R.Patil, learned

Amicus Curie for respondents.

5.

Learned counsel for the petitioner submits

that as per the complaint, the Society is legally liable

to pay an amount of Rs.10,72,491/- and in discharge

of the same, the Society issued the cheque dated

20.11.2018 in favour of the complainant. The said

cheque was signed by the petitioner herein, as the

authorized signatory representing the Society. The

said cheque was dishonoured as the account was

dormant. Therefore, legal notice was served on the

petitioner.

6.

Learned counsel further submits that on

28.02.2019 a new body was constituted for the

Society and one Mr.A.K.Bagavan was authorized to

sign the cheques, as Deputy Secretary of the Society,

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along with its President. Therefore, financial powers

vested with this petitioner was withdrawn by the

Society, with effect from 28.02.2019. The cheque in

question was came to be dishonoured on 23.11.2018

and thereafter the legal notice was issued calling upon

the petitioner to pay the amount. Since the petitioner

was not authorized to make the payment on behalf of

the Society, he could not make the payment and

therefore no offence is committed by the petitioner.

The trial Court without application of