IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF MARCH, 2019 BEFORE THE HON’BLE MR. JUSTICE P.S. DINESH KUMAR CRIMINAL PETITION No.4010 OF 2014 BETWEEN:
MR. KENCHA AGE: 40 YEARS S/O: CHANDRAPPA HOUSE NO. 2-27 HALIYURU POST VALPADY VILLAGE MANGALORE TALUK-574 236 ... PETITIONER (BY SMT. H. GAYATHRI BHAT, ADVOCATE FOR SHRI. P.P. HEGDE, ADVOCATE) AND:
1. M/S SHRIRAM TRANSPORT FINANCE CO., LTD., - A PUBLIC LIMITED COMPANY, HAVING ITS HEAD OFFICE AT 123 ANGAPPA NAICKEN STREET CHENNAI, HAVING ITS BRANCH OFFICE AT 1ST FLOOR PRABHU COMPLEX NEAR BUS STAND MOODBIDRI-574 227 DIVISIONAL OFFICE AT PARADIGAM PLAZA 1ST FLOOR, A.B. SHETTY CIRCLE MANGALORE-5750 001 REPRESENTED BY ITS OFFICER & GPA HOLDER MR. K.VASUDEVA S/O LATE K.L.BHAT AGED ABOUT 51 YEARS MANGALORE-574 236 2. THE STATE - THROUGH THE SUB INSPECTOR OF POLICE MOODBIDRI POLICE STATION MOODIBIDRI REP. BY THE STATE PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA BANGALORE-560 001 ... RESPONDENTS (BY SHRI. A.P. PRABHATH, ADVOCATE FOR SHRI. K. PRASANNA SHETTY, ADVOCATE FOR R1; SMT. B.G. NAMITHA MAHESH, HCGP FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO QUASH THE FIR IN CRIME NO.103/2014 OF MOODBIDRI P.S., (ARISING OUT OF P.C.NO.63/2014 ON THE FILE OF CIVIL JUDGE & JMFC, MOODBIDRI) INCLUDING THE SEIZURE OF THE VEHICLE BEARING NO.KA-19-B-1812 AS PER P.F.NO.32/2014 IN THE SAID CASE AND ALL FURTHER PROCEEDINGS IN THE SAID CASE.
THIS CRIMINAL PETITION COMING ON FOR FINAL HEARING THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Heard Smt. H. Gayathri Bhat, learned advocate for the petitioner, Shri A.P. Prabhath, learned advocate for respondent No.1 and Smt. B.G. Namitha Mahesh, learned HCGP for the state.
2. Petitioner borrowed loan from M/s. Shriram Transport Finance Co. Ltd.(respondent No.1) to purchase a transport vehicle bearing No.KA-19-B-1812. It appears, petitioner defaulted in making payment. The Finance Company filed a private complaint in PCR No.63/2014 and the same was referred for investigation under Section 156(3) of Cr.P.C. Accordingly, FIR No.103/2014 was registered on 29.05.2014 in Moodabidre Police Station. After investigation, police have filed the charge sheet.
3. Learned advocate for the petitioner submits that finance was given by respondent No.1 on certain terms and conditions, which included resolution of dispute between the parties by arbitration. The Finance Company has filed a petition in A.A.No.51/2012 before I Additional District and Sessions Judge, D.K., Mangalore, under Section 9 of the Arbitration and Conciliation Act, 1996 inter alia seeking a direction to take vehicle into the custody. Simultaneously, they have also filed the instant private complaint before the learned Magistrate alleging commission of offences punishable under Sections 406, 420 and 421 of IPC read with Section 34 of IPC. Police have seized the vehicle in question and the same has been released in favour of the financier. She submits that the matter being purely civil in nature, private complaint and all further proceedings are unsustainable in law.
4. Shri Prabhath, learned advocate for the financier argued in support of the private complaint. However, he does not dispute that vehicle has been released in favour of the financier.
5. I have carefully considered the rival contentions and perused the records.
6. Admittedly, financier has initiated arbitration proceedings in A.A.No.51/2012 in the Court of I Additional District and Sessions Judge, D.K., Mangalore. Simultaneously, it filed the instant private complaint alleging offences mentioned above on the ground that petitioner had not paid monthly installments. The conduct of the financier in initiating criminal proceedings simultaneously with proceedings under the provisions of Arbitration and Conciliation Act amounts to abuse of process of law.
7. Resultantly, this petition merits consideration and it is accordingly allowed. All proceedings pursuant to registration of FIR No.103/2014 arising out of PCR No.63/2014 pending on the file of Civil Judge and JMFC, Moodbidre, are quashed.
No costs.
Sd/- JUDGE AV