IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JULY 2019 BEFORE THE HON'BLE Mr.JUSTICE P.S.DINESH KUMAR CRIMINAL PETITION NO.9279 OF 2018 BETWEEN:
PRUTHVI BANWASI, SON OF LATE N.C.BANWASI, AGED ABOUT 48 YEARS, RESIDING AT OFFICE AT ROOTS ACADEMY, NO.3905, DEVOPRIYO, 1ST MAIN, 40TH CROSS, JAYANAGAR 8TH BLOCK, OPP. JAYARAMA SEVA MANDALI, BENGALURU – 560 082.
…PETITIONER (BY SHRI HARIKRISHNA PRAMOD, ADVOCATE FOR SMT. SNEHA NAGARAJ, ADVOCATE) AND:
1. STATE OF KARNATAKA, REPRESENTED BY JAYANAGAR POLICE, JAYANAGAR 4TH BLOCK, 30TH CROSS, BANGALORE – 560 011.
2. C.RAJASHANKAR, SON OF LATE C.P.BUCHAIYA SETTY, AGED ABOUT 38 YEARS, RESIDING AT NO.651, 14TH MAIN, 38TH CROSS, 4TH T BLOCK, JAYANAGAR, BANGALORE – 560 041.
(BY SMT. K.P.YASHODHA, HCGP FOR R1;
… RESPONDENTS SHRI VARUN TALLAN, ADVOCATE FOR SHRI SUMAN K.S., ADVOCATE FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 CR.P.C., PRAYING TO QUASH THE F.I.R. AGAINST THE PETITIONER IN CR.NO.45/2018 BEFORE THE JAYANAGAR POLICE STATION FOR THE OFFENCE P/U/S 406, 415, 420, 504 AND 506 OF IPC.
THIS CRIMINAL PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:-
ORDER Second respondent - complainant filed a private complaint on 09.10.2017 contending interalia that complainant and accused entered into a partnership agreement on 01.04.2013. They started a business in the name and style of ‘ROOTS KNOWLEDGE CENTRE’. At the inception, complainant and accused invested Rs.10,000/- cash as capital. The profit and loss sharing ratio was agreed as 50:50. As requested by the accused, complainant lent a sum of Rs.50.00 lakhs in the following manner.
“a) Rs.15,00,000/- (Fifteen Lakhs Only) by way of RTGS on 9.4.2013 to the partnership firm account ROOT KNOWLEDGE CENTRE as per the direction of accused;
b) Rs.10,00,000/- (Ten Lakhs Only) by way of RTGS on 10.4.2013 to the partnership firm account ROOT KNOWLEDGE CENTRE as per the direction of accused.
c) Rs.15,00,000/- (Fifteen Lakhs Only) by way of RTGS on 18.4.2013 to the partnership firm account ROOT KNOWLEDGE CENTRE as per the direction of accused.
d) Rs.10,00,000/- (Ten Lakhs Only) by way of RTGS on 27.4.2013 to the partnership firm account ROOT KNOWLEDGE CENTRE as per the direction of accused.”
2. It is complainant’s case that said amount was deposited in the account of ‘ROOTS KNOWLEDGE CENTRE’. Accused had promised to repay the sum of Rs.50.00 lakhs within four months. However, accused transferred the said amount to a trust called as “ROOTS EDUCATION TRUST”. Accused had also offered a good position to the complainant in Roots Academy. Complainant made repeated requests for repayment of loan. But there was no response from the accused. Complainant approached Jayanagar Police Station to lodge a complaint and police registered it as an N.C.R.
3. With above averments complainant filed the instant private complaint. Learned Magistrate referred the case to the jurisdictional police under Section 156(3) of Cr.P.C for investigation. Accordingly, FIR No.45/2018 has been registered in Jayanagar Police Station on 11.02.2018. Feeling aggrieved by registration of FIR, petitioner has challenged the criminal proceedings initiated against him in this petition.
4. Shri Harikrishna Pramod, learned advocate for the petitioner submitted that petitioner and complainant are partners of the firm. The amount of Rs.50.00 lakhs was deposited in the firm’s account. Transfer of the said amount has been made to the said Trust from the account through cheques signed by both the complainant and the accused. The matter is purely civil in nature. The complaint has been filed to arm-twist the petitioner to repay the loan. Accordingly, he prays for allowing the petition.
5. Learned advocate for the complainant submitted that the signed cheques were given to the accused to ensure that business runs smoothly. Further complainant’s children were studying in “ROOTS ACADEMY”. Accused refused to give transfer certificates to complainant’s children. Accused had offered a good position in ‘ROOTS ACADEMY’ but did not fulfill the said promise and it amounts to criminal breach of trust. Thus justifying the criminal complaint, he prayed for dismissing this petition.
6. Learned High Court Government Pleader also argued in support of the FIR.
7. I have carefully considered rival contentions and perused the records.
8. Indisputable facts are, Rs.50.00 lakhs was deposited in the Bank account of partnership firm. The said amount was transferred to the Trust. The grievance of complainant is that the amount was given as loan and the same is not repaid. Further, he was offered a good position in the ‘ROOTS ACADEMY’ but, it was not given. The transfer certificates of the children who were studying in ‘ROOTS ACADEMY’ were not also given.
9. It is submitted by the learned advocate for the petitioner that transfer certificates have already been issued and presently complainant’s children are studying in different schools.
10. Thus both remaining grievances namely non repayment of loan and not giving a coveted position in Roots Academy do not constitute any offence.
11. Admittedly, complainant and accused are partners in a firm. The matter is purely civil in nature. In the circumstances, initiation of criminal proceedings against the accused is unsustainable in law.
12. Resultantly, this petition merits consideration and it is accordingly allowed. FIR No.45/2018 registered in Jayanagar Police Station, Bengaluru is quashed.
No costs.
Sd/-
JUDGE GH