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IN THE HIGH COURT OF KARNATAKA

DHARWAD BENCH

DATED THIS THE 16^TH DAY OF DECEMBER, 2021

BEFORE

THE HON’BLE MRS.JUSTICE M.G.UMA

CRL.P NO.101830/2021

BETWEEN

1 .

SHRI. RAVI ALIAS VENKATESH S/O. SHESHANAGOUDA PATIL

AGE. 58 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O. GOVINDAPUR GALLI, MUDHOL

TQ. MUDHOL DIST. BAGALKOTE

2 .

SHRI.SHIVANAGOUDA S/O.RANGANAGOUDA PATIL

AGE. 36 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O.KAMAKERI TQ. RAMDURG, DIST. BELAGAVI

3 .

SHRI.ASHOK S/O.BHIMAPPA PARADDI

AGE. 62 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O. ANAND NAGAR, MUDHOL

TQ. MUDHOL, DIST. BAGALKOTE

4 .

SHRI.RATNAKAR B SHETTI

AGE. 55 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O. NEAR SYNDICATE BANK, MUDHOL

TQ. MUDHOL, DIST. BAGALKOTE

5 .

SHRI.SATISH S/O.SANGAPPA MALGHAN

AGE. 56 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O. PALACE ROAD,MUDHOL, TQ. MUDHOL

DIST. BAGALKOTE

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6 .

SHRI.NINGAPPA S/O.TIPPANNA HUGGI

AGE. 72 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O. MACHAKANUR VILLAGE

TQ. MUDHOL, DIST. BAGALKOTE

7 .

SHRI.DEEPAK S/O.HANUMANTGOUDA PATIL

AGE. 45 YEARS, OCC. DIRECTOR,

TRIVENI EDUCATION SOCIETY MUDHOL

R/O.NO.41, AVARESH SADAN,

36 CROSS, LINGARAJ NAGAR (SOUTH), VIDYA NAGAR,

HUBBALLI, DIST. DHARWAD

...PETITIONERS

(BY SRI.B.V.KERUR AND SRI.D.B.KARIGAR, ADVS.)

AND

SHRI GAJANAN URBAN CO OP SOCIETY LTD. HUBBALLI

H.O. M.G.MARKET, VALVEKAR GALLI, HUBBALLI

REP. BY ITS AUTHORIZED SIGNATORY

PRAVEEN S BENDIGERI

AGE. 38 YEARS, OCC. JR. CLERK,

R/O. HUBBALLI, DIST. DHARWAD

RESPONDENT

(BY SRI.MALLIKARJUN C.HUKKERI, ADV.)

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

SEEKING TO QUASH THE ENTIRE PROCEEDINGS INITIATED AGAINST

THE PETITIONER/ACCUSED NOS.4 TO 10 U/S 138 AND 142 OF N.I.

ACT INCLUDING TAKING OF COGNIZANCE, ISSUANCE OF PROCESS

AND NON-BAILABLE WARRANT IN ITS CC NO.1972/2017 WHICH IS

PENDING ON THE FILE OF PRINCIPAL CIVIL JUDGE AND JMFC,

HUBBALLI,

DISTRICT

DHARWAD

AND

THEREBY

ALLOW

THIS

PETITION.

THIS CRIMINAL PETITION COMING ON FOR ADMISSION THIS

DAY, THE COURT MADE THE FOLLOWING:

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ORDER

Though the matter is listed for admission, with consent of

the learned counsel appearing for the parties, it is taken up for

final disposal

2.

Petitioners/accused Nos.4 to 10 in C.C.No.1972/2017

on the file of the Principal Civil Judge & JMFC Court at Hubballi

(hereinafter referred to as ‘the trial court’ for short), registered

for the offence punishable under Section 138 of Negotiable

Instruments Act (hereinafter referred to as ‘the N.I.Act’ for

short) on the basis of the private complaint in PCR No.493/2017

are before this court seeking to quash the criminal proceedings

initiated against them.

3.

The brief facts of the case are that, respondent filed

the private complaint in PCR No.493/2017 before the trial court

against accused Nos.1 to 10 alleging the commission of the

offence punishable under Sections 138 and 142 of N.I.Act. It is

contended that complainant is a society registered under the

Karnataka Co-operative Societies Act and accused No.1 is the

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member of the Shri Gajanan Urban Co-op Society Ltd. Further,

he is the Chairman of Triveni Education Society and also Director

and authorized signatory for Triveni Education Society. It is

stated that accused No.1 had availed loan of Rs.2.25 crores on

10.02.2016 for his Triveni Education Society by mortgaging the

properties. But he failed to repay the loan amount as agreed.

Subsequently, he issued the cheque dated 23.02.2017 for

Rs.1.00 crore towards legally enforceable debt that was due

from him. When the said cheque was presented for encashment,

the same was dishonoured as there was insufficient funds in his

account. Legal notice was issued against accused Nos.1 to 10,

but the cheque amount was not repaid and thereby all the

accused have c