IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JULY, 2019 BEFORE THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR CRIMINAL PETITION No.3677 OF 2019 BETWEEN:
1. M/S. GAYATHRI STRUCTURAL AND ROOFING PVT. LTD., REP. BY K.N. SHIVASHANKAR AND K.R. PRABHAVATHI (DIRECTORS) NO.3, 2ND FLOOR, 1ST MAIN ROAD BEHIND RTO OFFICE ABOVE ADISHWAR SOWROOM YESHWANTHPUR BENGALURU-560 022 2. K.N. SHIVASHANKAR S/O K.V.N. RAO AGED 71 YEARS DIRECOTR M/S. GAYATHRI STRUCTURAL AND ROOFING PVT. LTD., R/AT NO.594/22, 7TH MAIN K.M.EXTENSION, YESHWANTHPUR BENGALURU-560 022 3. K.R. PRABHAVATHI D/O LATE K. RAMAN AGED 46 YEARS DIRECOTR M/S. GAYATHRI STRUCTURAL AND ROOFING PVT. LTD., R/AT NO.594/22, 7TH MAIN K.M.EXTENSION, YESHWANTHPUR BENGALURU-560 022 … PETITIONERS (BY SHRI. K. DIWAKARA, ADVOCATE) AND:
SRI. LOKESH B.R S/O B.H. RAMANNA AGED ABOUT 46 YEARS R/AT NO.115, 2ND MAIN, 1ST CROSS ANNAPOORNESHWARI NAGAR NAGARBHAVI, BENGALURU-560 091 ... RESPONDENT THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.5847/2019 AGANST THE PETITIONERS HEREIN PENDING ON THE FILE OF THE XXII A.C.M.M., BANGALORE FOR THE OFFENCE P/U/S 138 OF N.I ACT.
THIS CRIMINAL PETITION COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Petitioners are accused in the proceedings initiated by second respondent for dishonour of four cheques issued by the first petitioner company, cumulatively for Rs.35,00,000/-. Pursuant to dishonour of cheque, complainant filed a private complaint registered as PCR No.1490/2019 before the 22nd Additional Chief Metropolitan Magistrate, Bengaluru. The petitioners have presented this petition with a prayer to quash the entire criminal proceedings.
2. Shri K.Diwakara, learned advocate for the petitioners urged a solitary contention that money was invested by the complainant into the company and accordingly, he was made as an Additional Director of the company. There was no enforceable debt and therefore, company was not liable to pay the said amount. Accordingly, he prays for allowing this petition.
3. The complainant has annexed an affidavit to the complaint filed before the learned Magistrate. The contents of the affidavit discloses that after coming to know of the financial status of the company and unrealistic information provided by accused No.2 and 3, the complainant conveyed to accused Nos.2 and 3 that he would not continue to invest in the company nor was interested in purchasing any share in the company and requested them to refund the amount of Rs.35,00,000/-. After several exchange of correspondence, accused tendered following four cheques.
Sl. No Cheque No. & Date Amount in Rs.
Bank drawn on Date and reason for Dishonour 1. 302227/ 17-11-2018 20,00,000/- Syndicate Bank Ltd 20-11-2018 Funds insufficient
4. On presentation, all the cheques stood dishonoured. Accordingly, complainant has initiated criminal proceedings against petitioners under Section 138 of the Negotiable Instruments Act.
5. The solitary contention urged in support of this petition is that once an investment is made, it does not become a repayable debt. It is relevant to note that complainant was offered directorship subject to making investment. The petitioner made investment and accordingly he was offered additional directorship. Thus, this is a case in which investment was sought into an existing company. Complainant invested Rs.35,00,000/- and he was given an additional directorship. After coming to know of the financial status of the company, he sought refund of his investment and the same has been made by issuing aforementioned cheques. Therefore, solitary contention urged on behalf of the petitioners fails. Hence, I find no ground to interfere and accordingly petition is dismissed.
No costs.
Sd/- JUDGE Yn.