Dipak Kuberdas Shah Alias Dipak K Shah Vs State of Karnataka — Karnataka HC (2025) — LawSathi Research

Dipak Kuberdas Shah Alias Dipak K Shah Vs State of Karnataka — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Entire proceedings in C.C. No. 1180/2008 (including the chargesheet dated 05.05.2008, FIR Crime No. 12/2008 dated 11.04.2008 and complaint P.C.R. No. 26/2008) against the petitioners quashed, on the basis of the settlement between the parties and the de facto complainant's no-objection.

Issue for consideration

Whether the chargesheet dated 05.05.2008 in C.C. No. 1180/2008 (for offences under Sections 405, 415, 420 r/w 109 IPC) and the connected FIR (Crime No. 12/2008) and complaint (P.C.R. No. 26/2008) proceedings against the petitioners should be quashed in view of the amicable settlement arrived at between the parties.

Court's answer

Although the offences alleged are cognizable and non-compoundable, the parties having amicably resolved the dispute pursuant to the settlement, it would serve no purpose to subject the petitioners to trial; the probability of conviction is remote and unlikely considering the settlement, and therefore the continuation of the criminal proceedings would amount to an abuse of the process of law.

Ratio / Principle

Both criminal petitions are allowed; the impugned proceedings in C.C. No. 1180/2008 pending before the learned Additional Civil Judge and JMFC, Hosapete are quashed in their entirety.

Detailed headnote1 paragraphs

High Court of Karnataka, Dharwad Bench (Hemant Chandangoudar, J.), 08.01.2025 — Connected criminal petitions CRL.P No. 100008 of 2025 (u/s 482 Cr.P.C.; 528 BNSS) by Dipak Kuberdas Shah (accused no. 3) and CRL.P No. 103756 of 2024 (u/s 528 BNSS) by eight directors/officers of Sal Steel Ltd. (accused nos. 1, 5 to 10 and 13) sought quashing of the chargesheet dated 05.05.2008 in C.C. No. 1180/2008 (Ss. 405, 415, 420 r/w 109 IPC), FIR in Crime No. 12/2008 dated 11.04.2008 and complaint in P.C.R. No. 26/2008 before the Additional Civil Judge and JMFC, Hosapete, arising from an alleged failure to pay the balance sale consideration for iron ore supplied by the de facto complainant. By the time of hearing, the parties had amicably settled; the complainant agreed to withdraw all allegations and raised no objection to quashing. Held: though the offences were cognizable and non-compoundable, with the dispute settled the probability of conviction was "remote and unlikely", and continuation of the criminal proceedings would amount to an abuse of the process of law. Petitions allowed; proceedings in C.C. No. 1180/2008 quashed in their entirety.

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NC: 2025:KHC-D:247 CRL.P No. 100008 of 2025 C/W CRL.P No. 103756 of 2024

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 8^TH DAY OF JANUARY, 2025 BEFORE

THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR

CRIMINAL PETITION NO. 100008 OF 2025 (482(Cr.PC)/528(BNSS)) C/W CRIMINAL PETITION NO. 103756 OF 2024

IN CRL.P.NO.100008 OF 2025:

BETWEEN:

DIPAK KUBERDAS SHAH @ DIPAK K SHAH AGED ABOUT 63 YEARS S/O. LATE KUBERDAS SHAH, OCC. ADMINISTRATIVE OFFICER, RESIDING AT B/202 GARDENIA RESIDENCY, 10 VASANT KUNJ SOCIETY, NEW SHARADA MANDIR ROAD, PALDI, AHMEDABAD-380 007, GUJARAT.

Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.21 07:28:32 +0530

ADDRESS OF THE PETITIONER INCORRECTLY MENTIONED IN THE CHARGESHEET AS SAL STEEL LIMITED, ADMINSTRATIVE OFFICE, 9TH FLOOR GANDHI NAGAR, HIGHWAY BADAKDEV AHMEDABAD-380 054, GUJARAT STATE. …PETITIONER

(BY SRI. MRINAL SHANKAR, ADVOCATE)

AND:

STATE OF KARNATAKA THROUGH STATION HOUSE OFFICER, HOSAPETE EXTENSION POLICE STATION, BUS STAND ROAD, OPP. BDCC BANK HEAD OFFICE, HOSAPETE-583201.

BADRINARAYAN NANDAKISHOR LADDA AGED ABOUT 57 YEARS, S/O. NANDKISHOR LADDA, RESIDING AT R -345, KIRAN NIWAS,

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NC: 2025:KHC-D:247 CRL.P No. 100008 of 2025 C/W CRL.P No. 103756 of 2024

OPP. ALL INDIA RADIO STATION, HOSAPETE-583 203.

…RESPONDENTS

(BY SRI. ASHOK T. KATTIMANI, AGA FOR R1; SRI. K.L.PATIL, ADVOCATE FOR R2)

THIS CRIMINAL PETITION IS FILED U/SE. 482 OF CR.P.C. (U/S. 528 OF BNSS, 2023) SEEKING TO QUASH THE CHARGE SHEET DATED 05.05.2008 IN C.C.NO. 1180/2008, FOR THE ALLEGED OFFENCES P/U/SEC. 405, 415, 420 R/W 109 OF IPC 1860, PENDING ON THE FILES OF ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONER/ ACCUSED NO.3 (ANNEXURE-A) AND QUASH THE FIR IN CRIME NO. 12/2008, DATED 11.04.2008, REGISTERED BY RESPONDENT NO.1 FOR THE ALLEGED OFFENCS P/U/SEC. 405, 415, 420 R/W SEC. 109 OF IPC, 1860, PENDING ON THE FILES OS ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONER/ACCUSED NO.3 (ANNEXURE-B) AND QUASH THE COMPLAINT IN P.C.R. NO. 26/2008 FILED BY RESPONDENT NO.2 BEFORE THE ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONER/ACCUSED NO.3 (ANNEXURE-C) AND QUASH ENTIRE PROCEEDINGS IN CC NO.1180/2008, PENDING ON THE FILES OF ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONER/ACCUSED NO.3 (ANNEXURE-D).

IN CRL.P.NO.103756 OF 2024: BETWEEN:

RAJENDRAKUMAR SHAH @ RAJENDRA V. SHAH AGED ABOUT 69 YEARS, OCC. CHERMAN SAL STEEL, S/O. VIJAYKUMAR SHAH, R/O. NAVKAR BUNGLOW, MANICHANDRA SOCIETY PART-5 MEMNAGAR, BETWEEN SUBHASH CHOWK, AND SURDHARA CIRCLE, AHMEDABAD-380 052, GUJARAT.

SUJALKUMAR ASHOKKUMAR SHAH @ SUJAL A. SHAH, AGED ABOUT 57 YEARS, OCC. DIRECTOR (PERCHARGES) SAL STEEL LTD.,) S/O. ASHOK BHAI SHAH, R/O. 504, VATSRAJ FLAT,

NC: 2025:KHC-D:247 CRL.P No. 100008 of 2025 C/W CRL.P No. 103756 of 2024

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JODHPUR GRAM ROAD, OPP. SHARADDHA SCHOOL, SATELLITE, AHMEDABAD-380015, GUJARAT.

SHAH SURESHBHAI @ D. SHAH AGED ABOUT 67 YEARS, OCC. DIRECTOR (PERCHAGES SLA STEEL LTD.) S/O. DALAPCHAND, R/O. 25, JAY MANGAL SOCIETY, NEAR JAY MANGAL BRTS BUS STOP, NARANPURA VISTAR, AHMEDABAD-380 013, GUJARAT.

BABULAL SINGHAL @ BABULAL M. SINGHAL AGED. ABOUT 67 YEARS, OCC. DIRECTOR (COMMERCIAL) SAL LTD., S/O. MADANLAL SINGHAL, R/O. M-15/178, GOKUL APARTMENT, SOLA ROAD, SOLA HBC, OPP. PARASNAGAR NARANPURA, AHMEDABAD-380063, GUJARAT.

AMBALAL PATEL @ AMBALAL C. PATEL AGED ABOUT 80 YEARS, OCC. DIRECTOR (SAL STEEL LTD.,) S/O. CHHITABHAI NAGAJIBHAI PATEL, R/O. 14/B, DHARANIDHAR, DERASAR VASNA, PALNA, AHMEDABAD-380007, GUJARAT.

SHAIKH GULAMHUSSEIN MOHAMMEDHUSSEN @ GHULAMHUSSAIN SHAIKH, AGED ABOUT 84 YEARS, OCC: DIRECTOR (SLA STEEL LTD), S/O. MOHAMMEDHUSSEIN, R/O. 3-B, MUSLIM CO .OP SOCIETY, MITHAKHALI SIX ROAD, NAVRANGPURA, VTC: AHMEDABAD, PO. NAVRANGPURA, AHMEDABAD-580009, GUJARAT.

HARSHAD M. SHAH @ HARSHAD SHAH AGED ABOUT 75 YEARS, OCC. DIRECTOR SAL STEEL LTD., S/O. MAFTLAL KILAHAND SHAH,

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NC: 2025:KHC-D:247 CRL.P No. 100008 of 2025 C/W CRL.P No. 103756 of 2024

R/O. 301, BHATEVA KRUPA 56 TPS ROAD, NEXT TO MEHTA MEDICAL MUMBAI-400092, MAHARASHTRA.

RAKESH RANJAN AGED ABOUT 56 YEARS, OCC. ASSST. GENERAL MANAGER, SAL STEEL LTD. S/O. LALMANI BINDESHWARI SHARMA, R/O. D-304, SUNCITY, SP RING ROAD, SECTOR-2, VTC: DASKORI, PO: BHOPAL, AHMEDABAD DISTRICT.380058, GUJARAT.

ADDRESS OF PETITIONER NOS.1 TO 8 INCORRECTLY MENTIONED IN THE CHARGESHEET AS SAL STEEL LIMITED, ADMINISTRATIVE OFFICE, 9TH FLOOR, GANDHINAGAR HIGHWAY BADAKDEV AHMEDABAD-580054, GUJARAT STATE.

…PETITIONERS

(BY SRI. MRINAL SHANKAR, ADVOCATE)

AND:

STATE OF KARNATAKA THROUGH STATION HOUSE OFFICER, HOSAPETE EXTENSION POLICE STATION BUS STAND ROAD, OPP. BDCC BANK HEAD OFFICE, HOSAPETE-583201.

BADRINARAYAN NANDAKRISHOR LADDA AGED ABOUT 57 YEARS, S/O. NANDKISHOR LADDA, RESIDING AT R-345, KIRAN NIWAS OPP. ALL INDIA RADIO STATION, HOSAPETE-583203.

…RESPONDENTS

(BY SRI. ASHOK T.KATTIMANI, AGA FOR R1; SRI. K.L. PATIL, ADVOCATE FOR R2)

THIS CRIMINAL PETITION IS FILED U/SEC. 528 OF BNSS, 2023 SEEKING TO QUASH THE CHARGE SHEET DATED 05.05.2008 IN C.C.NO. 1180/2008, FOR THE ALLEGED OFFENCES P/U/SEC. 405, 415, 420 R/W 109 OF IPC, 1860, PENDING ON THE FILE OF ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONERS ACCUSED NO.1, 5, TO 10 AND 13 (ANNEXURE-

5 - NC: 2025:KHC-D:247 CRL.P No. 100008 of 2025 C/W CRL.P No. 103756 of 2024

A) AND QUASH THE FIR IN CRIME NO. 12/2008, DATED 11.04.2008, REGISTERED BY RESPONDENT N.1 FOR THE ALLEGED OFFENCES P/U/SEC. 405, 415, 420 R/W SEC. 109 OF IPC, 1860, PENDING ON THE FILE OF ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONERS ACCUSED NO. 1, 5 TO 10 AND 13 (ANNEXURE-B) AND QUASH THE COMPLAINT IN P.C.R NO. 26/2008 FILED BY RSPONDENT NO.2 BEFORE THE ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONERS/ACCUSED NO. 1, 5 TO 10 AND 13 (ANNEXUREC) AND QUASH ENTIRE PROCEEDINGS IN C.C.NO.1180/2008, PENDING ON THE FILE OF ADDITIONAL CIVIL JUDGE AND JMFC, HOSAPETE, AS AGAINST THE PETITIONERS/ACCUSED NO. 1, 5 TO 10 AND 13 (ANNEXURE-D) FOR OFFENCE P/U/SEC.405, 420 R/W 109 OF IPC.

THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR

ORAL ORDER

The petitioners are sought to be prosecuted for the offenses punishable under Sections 405, 415, and 420 read with Section 109 of the Indian Penal Code (IPC).

The case of the prosecution is that the de facto complainant supplied iron ore to the accused/petitioners, and after paying part of the sale consideration, the accused, with the intention to cheat, failed to pay the balance amount of the sale consideration.

The petitioners have annexed a copy of the settlement agreement entered into between the company of which the petitioners are directors and the de facto complainant. As per the terms of the settlement, the de facto complainant has agreed to

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withdraw all allegations against the petitioners and has no objection to the quashing of the impugned proceedings.

Although the offenses alleged are cognizable and noncompoundable, given that the parties have amicably resolved the dispute amongst themselves, it would serve no purpose to subject the petitioners to trial. The probability of the petitioners’ conviction is remote and unlikely, considering the settlement. Therefore, the continuation of criminal proceedings against the petitioners would amount to an abuse of the process of law.

Accordingly, the petitions are allowed. The impugned proceedings in CC No. 1180/2008, pending before the learned Additional Civil Judge and JMFC, Hosapete, are hereby quashed in their entirety.

Sd/(HEMANT CHANDANGOUDAR) JUDGE

JTR Ct:vh List No.: 2 Sl No.: 4