IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 09TH DAY OF JULY, 2019 BEFORE THE HON'BLE MR. JUSTICE JOHN MICHAEL CUNHA CRIMINAL PETITION No.5805/2015 BETWEEN:
1. SMT. SAVITHA H WIFE OF SRI.VENKATESHA SHASTRY, AGED ABOUT 41 YEARS, RESIDING AT NO.1065, 11TH CROSS, 35TH MAIN, JP NAGAR 1ST PHASE, BANGALORE-560 078.
2. VENKATESH S SHASTRY, SON OF SRI. K.N.SHAMANNA, AGED ABOUT 45 YEARS, RESIDING AT 1065, 11TH CROSS, 35TH MAIN, J.P.NAGAR, 1ST PHASE, BANGALORE-560 078.
3. SMT. SUSHEELA.H.V, WIFE OF SRI.NANJUNDESHWAR, AGED ABOUT 64 YEARS, RESIDING AT NO.77, VAKIL GARDEN, THALAGHATTAPURA, KANAKAPURA ROAD, BANGALORE-560 062.
4. SMT. AMULYA.R WIFE OF SRI. SRIDHAR.H, AGED ABOUT 43 YEARS, RESIDING AT NO.21, 1ST FLOOR, 26TH CROSS, BSK 2ND STAGE, BANGALORE-560 070.
5. KRISHNA.H.V, SON OF SRI. H.K.VENKATARAMANA SHASTRY, AGED ABOUT 47 YEARS, RESIDING AT 418, 8TH CROSS, B MAIN, KALYAN NAGAR, 1ST PHASE, HRB LAYOUT, BANGALORE-560 043.
6. RAVIPRAKASH.H.V, SON OF SRI. H.K.VENKATARAMANA SHASTRY, AGED ABOUT 61 YEARS, RESIDING AT 418, 8TH B MAIN, 4TH CROSS, KALYAN NAGAR, 1ST PHASE, HRB LAYOUT, BANGALORE-560 043.
7. SMT. ROOPALATHA, WIFE OF SRI. SHESHADRI.B.S., AGED ABOUT 50 YEARS, RESIDING AT NO.190, 9TH CROSS, BANK AVENUE BABUSAPALYA, BANASWADI, BANGALORE-560 048.
8. B.S.SHESHADRI, SON OF SRI. SOMESHWARAIAH, AGED ABOUT 51 YEARS, RESIDING AT NO.190, 9TH CROSS, BANK AVENUE, BABUSAPALYA, BANASWADI, BANGALORE-560 048.
(BY SRI. C.G.GOPALASWAMY, ADVOCATE) AND:
BANGALORE GROUP OF EDUCATIONAL INSTITUTIONS, NO.39, IAS OFFICERS COLONY, 5TH B CROSS, 16TH MAIN, BTM 2ND STAGE, ...PETITIONERS BANGALORE-560 076, REPRESENTED BY ITS CHAIRMAN DR. S.MAHALINGAM. ... RESPONDENT (BY SRI. B.J.MAHESH, ADVOCATE) THIS CRL.P FILED UNDER SECTION.482 CR.P.C PRAYING TO THIS HON'BLE COURT MAY BE PLEASED TO QUASH THE COMPLAINT IN C.C.NO.9766/2015 IN THE COURT OF THE XLII A.C.M.M., BANGALORE AT ANNEXURE-B, AND QUASH THE ORDER DATED 15.04.2015 ISSUING PROCESS AGAINST THE PETITIONER IN C.C.NO.9766/2015 IN THE COURT OF THE XLII A.C.M.M., BANGALORE (THE SAID ORDER BEING PART OF ANNEXURE-C).
THIS PETITION COMING ON FOR ADMISSION, THIS DAY, THE COURT PASSED THE FOLLOWING:
ORDER Heard learned counsel for the petitioners and learned counsel for the respondent.
2. Petitioners herein are sought to be prosecuted for dishonour of the cheque issued by accused No.1, namely the Chairman of Karnataka Technical Education Society, a Society registered under the Karnataka Societies Registration Act, 1960. The petitioners herein are implicated for the offence solely on the ground that the petitioners were the members of the governing body of accused No.1- Society at the relevant time and were responsible for the day-to-day affairs of the society.
3. Learned counsel for the respondent has produced the copy of the reply notice issued by the petitioners herein, wherein the respondents have denied the assertions made in the complaint and have taken up a specific plea that though they are the members of the Society, they are not at all responsible for the administration, as well as day-to- day affairs of the Society.
4. Having regard to the constitution of the Society and the cheque in question having been issued by accused No-1 and signed by its authorized signatories representing the society, in my view the prosecution of the petitioners for the alleged dishonour of cheque is contrary to Section 138 of Negotiable Instruments Act. The criminal liability as per Section 138 of N.I. Act could be fastened only on the drawer of the cheque. The petitioners herein are neither the drawers of the cheque nor vicariously liable for the dishonour of the cheque drawn by accused No.1. In that view of the matter, prosecution of the members of the society is opposed to law. Consequently, the proceedings initiated against the petitioners in C.C. No.9766/2015 are quashed only insofar as the petitioners viz., accused Nos.2 to 9 are concerned. The proceedings shall continue against accused No.1 in accordance with law.
Accordingly, the petition is allowed in part.
Sd/- JUDGE ln.