Sri Akhilesh N Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

Sri Akhilesh N Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Both petitions allowed: the undertaking of the borrowers taken on record and the proceedings in C.C.No.419/2025 (Sections 132, 127(2), 351(3) r/w 3(5) BNS 2023, including cognizance order dated 21.04.2025, FIR, complaint and charge sheet in Crime No.109/2024) quashed; the proceedings in FIR No.110/2024 (Sections 74, 352, 351(2) BNS 2023) against the Bank officials quashed; State Bank of India declared entitled to recover the outstanding dues strictly in accordance with law with the borrowers' full cooperation; pending interlocutory applications disposed of.

Issue for consideration

Whether the entire proceedings in C.C.No.419/2025 — including the cognizance order dated 21.04.2025, the FIR, complaint and charge sheet in Crime No.109/2024 — against the borrowers for offences under Sections 132, 127(2), 351(3) r/w 3(5) BNS 2023 ought to be quashed. +1 more

Court's answer

In light of the statement made and undertaking furnished by the borrowers/petitioners in Crl.P No.10926/2025 (to cooperate fully and refrain from abuse/obstruction), the Court held that continuation of the criminal proceedings in both cases would serve no fruitful purpose and required to be quashed.

Ratio / Principle

The proceedings pending against the borrowers in C.C.No.419/2025, though supported by a charge sheet, deserve to be quashed.

Key takeaways

The proceedings pending in FIR No.110/2024 against the Bank officials for offences under Sections 74, 352 and 351(2) of the Bharatiya Nyaya Sanhita, 2023 are hereby quashed.ratio¶78
Officials of the State Bank of India shall remain entitled to recover the outstanding loan amount strictly in accordance with law, and the borrowers shall extend full cooperation for the same.ratio¶79

Detailed headnote1 paragraphs

High Court of Karnataka (Sachin Shankar Magadum J., order dated 22.09.2025; NC: 2025:KHC:38047) — Twin petitions arising out of a verbal altercation during a loan-recovery visit by State Bank of India officials to the defaulting borrowers' residence at Puttur: (i) Crl.P No.10926/2025 (u/s 482 CrPC / u/s 528 BNSS) by the borrowers sought quashing of the entire proceedings in C.C.No.419/2025, including the cognizance order dated 21.04.2025, FIR, complaint and charge sheet in Crime No.109/2024 (ss.132, 127(2), 351(3) r/w 3(5) BNS 2023); (ii) WP No.31743/2024 (Art.226 read with s.528 BNSS) by three SBI officials sought quashing of FIR in Crime No.110/2024 dated 26/08/2024 (ss.74, 329(3), 352, 351(2), 3(5) BNS 2023). Finding the Bank officials entitled to initiate recovery strictly in accordance with law, noting that the allegation of display of a firearm did not find place in the final charge sheet, and acting on the borrowers' affidavit undertaking fullest cooperation, refraining from abusive language and non-obstruction of lawful recovery, the Court held continuation of both prosecutions would serve no fruitful purpose. Both petitions were allowed: the C.C.No.419/2025 proceedings were quashed and FIR No.110/2024 proceedings were quashed. The Court recorded that borrowers have no legal right to obstruct recovery, deprecated the growing practice of borrowers lodging criminal complaints against bank officials, found the borrowers' conduct wholly inappropriate, and clarified that SBI remains entitled to recover the outstanding dues strictly per law.

NC: 2025:KHC:38047 CRL.P No. 10926 of 2025 C/W WP No. 31743 of 2024

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 22^ND DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

CRIMINAL PETITION NO. 10926 OF 2025 C/W

WRIT PETITION NO. 31743 OF 2024 (GM-RES)

IN CRL.P No. 10926/2025

BETWEEN:

SRI AKHILESH N S/O KRISHNA KISHORE NT AGED ABOUT 33 YEARS, ASHWINI, PUTTUR TALUK, BALNADU, DAKSHINA KANNADA 574203.

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

SRI. KRISHNA KISHORE N.T S/O LATE N THIRUMALESHWARA BHAT AGED ABOUT 59 YEARS, ASHWINI, PUTTUR TALUK, BALNADU, DAKSHINA KANNADA 574203

(BY SRI. SUYOG HERELE.E., ADVOCATE)

…PETITIONERS

AND:

THE STATE OF KARNATAKA THROUGH PUTTUR RURAL P.S REP. BY SPP, HIGH COURT OF KARNATAKA BUILDING BENGALURU 560038

SRI CHAITHANYA H.C S/O CHANDRASHEKAR

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AGED ABOUT 40 YEARS, HOSAKERE HOUSE, ANDAGARU POST, KOPPA TALUK, CHIKKAMAGALURU KARNATAKA - 577126

…RESPONDENTS

(BY SMT.RASHMI JADHAV, ADDL. SPP FOR R1 SRI.SARAVANA.S., ADVOCATE FOR R2)

THIS CRL.P FILED U/S 482 CR.P.C (U/S 528 BNSS) PRAYING TO ALLOW THIS PETITION AND QUASH THE ENTIRE PROCEEDINGS IN CC.NO.419/2025, PENDING ON THE FILE OF LEARNED ADDL. SENIOR CIVIL AND JMFC, PUTTUR INCLUDING THE ORDER DTD 21.04.2025 OF TAKING COGNIZANCE, FIR, COMPLAINT AND CHARGE SHEET IN CR.NO.109/2024 REGISTERED BY THE RESPONDENT POLICE, FOR THE OFFENCES P/U/S 132, 127(2), 351(3) R/W 3(5) OF BNS, 2023, PRODUCED AT DOCUMENT NOs.1, 2, 3, 4 RESPECTIVELY.

IN WP NO. 31743/2024

BETWEEN:

SRI.CHAITHANYA H.C S/O CHANDRASHEKAR AGED ABOUT 40 YEARS, RELATIONSHIP MANAGER SME

AKASH CHANDRA BABU S/O CHANDRA BABU AGED ABOUT 26 YEARS, ASSISTANT MANAGER

DIVYA SHREE W/O. NIRANJANA K AGED ABOUT 30 YEARS,

PETITIONERS ARE EMPLOYEE OF STATE BANK OF INDIA COURT ROAD, PUTTUR GAJANANA TOWERS,

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1 FLOOR, COURT ROAD, OPPOSITE TO POLICE QTRS, PUTTUR, DAKSHINA KANNADA-574201

...PETITIONERS

(BY SRI. SARAVANA S., ADVOCATE)

AND:

THE STATE OF KARNATAKA PUTTUR RURAL POLICE STATION DAKSHINA KANNADA REPT, BY ITS HCGP HIGH COURT OF KARNATAKA BUILDING, BENGALURU-560001

SMT. KEERTHI AKHILESH AGED ABOUT 32 YEARS, WIFE OF AKHILESH 2-121 ASHWINI BALNADU UJURUPADE BALNADU VILLAGE' DAKSHINA KANNADA-574201

...RESPONDENTS

(BY SMT.RASHMI JADHAV, ADDL. SPP FOR R1 SRI SUYOG HERELE.E., ADVOCATE FOR R2)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 BHARATIYA NAGARIKA SURAKSHA SANHITA, 2023 PRAYING TO QUASH FIR IN CRIME NO. 110/2024, DATED 26/08/2024 AT ANN-D, IN ITS ENTIRETY FOR THE ALLEGED OFFENCES SECTIONS [S.74, OUTRAGING MODESTY OF WOMEN), [S.329[3] CRIMINAL TRESPASS] 352, [CRIMINAL INSULT] 351[2] [CRIMINAL INTIMIDATION] 3 [5] [COMMON INTENTION] OF THE BHARATIYA NYAYA SANHITA, 2023 PENDING ON FILE OF THE ADDL. SENIOR CIVIL JUDGE AND A.C.J.M, PUTTUR, DAKSHINA KANNADA AND ETC.

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

NC: 2025:KHC:38047 CRL.P No. 10926 of 2025 C/W WP No. 31743 of 2024

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CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

Crl.P.No.10926/2025 is filed by the default -borrowers

seeking quashing of the proceedings pending in C.C.No.419/2025 for the offences punishable under Sections 132, 127(2), 351(3) read with Section 3(5) of the Bharatiya Nyaya Sanhita, 2023 (for short 'BNS, 2023').

W.P.No.31743/2024 is filed by the Bank officials seeking quashing of the proceedings pending in FIR No.110/2024 for the offences punishable under Sections 74, 329(3), 352, 351(2) and 3(5) of the BNS, 2023.

This Court, upon perusal of the records, is of the opinion that the Bank officials, on account of the borrowers having committed default in repayment of the loan, were entitled to initiate recovery proceedings strictly in accordance with law. The incident in question has admittedly occurred when the Bank officials visited the residence of the borrowers in connection with the said recovery proceedings. It is seen that there was a verbal altercation between the borrowers’ family members and the Bank officials. In relation to the said incident,

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both sides have approached the police authorities: on the one hand, the family members of the borrowers have lodged a complaint against the Bank officials; on the other, the Bank officials have also lodged a complaint alleging that the borrowers and their family members threatened them and used filthy and abusive language. On the basis of the complaint lodged by the Bank officials, a case was registered, and the police have now filed a charge sheet against the borrowers in C.C.No.419/2025 for the offences punishable under Sections 132, 127(2), 351(3) read with Section 3(5) of the Bharatiya Nyaya Sanhita, 2023. Though it is alleged by the Bank officials that the borrowers and their family members went to the extent of threatening them by displaying a firearm, such allegation does not find place in the final charge sheet submitted by the investigating agency.

This Court has heard the learned counsel for the parties at length and carefully perused the material on record. As directed earlier, the borrowers, who are the petitioners in Crl.P.No.10926/2025, have filed an affidavit today. In the said affidavit, the petitioners have categorically undertaken that

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they shall extend their fullest cooperation to the Bank officials during the course of recovery proceedings. They have further assured the Court that they shall refrain from using any abusive or indecent language and shall not cause any obstruction to the lawful recovery proceedings that may be initiated by the Bank officials in accordance with law.

In the light of the statement made and undertaking furnished by the borrowers/petitioners in Crl.P.No.10926/2025, this Court is of the considered opinion that the continuation of criminal proceedings in both the cases would not serve any fruitful purpose and the same require to be quashed. It is trite that the petitioners/borrowers cannot claim any legal right to obstruct or interfere with the recovery proceedings initiated by the Bank officials for realization of the outstanding dues. However, since the borrowers have now, by way of affidavit, undertaken to co-operate fully with the Bank officials, this Court deems it appropriate to give a quietus to the criminal proceedings initiated on the basis of the altercation. Otherwise, officials of the State Bank of India, which is a scheduled nationalized bank, would be compelled to undergo the ordeal of

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prosecuting criminal proceedings while simultaneously being constrained to pursue their recovery process.

On a closer examination of the charge sheet papers

and the background of the case, this Court is of the view that the allegations essentially arise out of an altercation during recovery proceedings when the Bank officials sought to attach movable properties that had been furnished as security while availing the loan. The charge sheet discloses that abusive language was used by the borrowers’ family and that the officials were prevented from proceeding further. However, now that the borrowers have voluntarily given an undertaking before this Court to extend full co-operation, this Court is persuaded to hold that the continuation of the criminal proceedings would not be in the interest of justice. Accordingly, the proceedings pending against the borrowers, though supported by a charge sheet, deserve to be quashed.

At the same time, this Court does not lose sight of the conduct of the borrowers, which is found to be wholly inappropriate and unfair. When the borrowers had admittedly defaulted in repayment, the Bank was well within its rights

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under the loan agreement and statutory provisions to classify the account as a Non-Performing Asset and to initiate recovery proceedings. The growing trend of borrowers lodging criminal complaints against bank officials whenever recovery proceedings are initiated has also been noticed by this Court, and such practices cannot be encouraged. Nonetheless, in the present case, in view of the affidavit filed by the petitioners/borrowers undertaking to co-operate with the recovery proceedings strictly in accordance with law, this Court finds it just and proper to quash both sets of proceedings in order to restore peace between the parties and permit the Bank to proceed with lawful recovery.

8. For the foregoing reasons, the following:

ORDER

i) Crl.P.No.10926/2025 is hereby allowed.

ii) The undertaking furnished by the petitioners/borrowers in Crl.P.No.10926/2025 is taken on record. Consequently, the proceedings pending in C.C.No.419/2025 for the offences punishable under Sections 132, 127(2), 351(3) read with Section 3(5) of the

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Bharatiya Nyaya Sanhita, 2023 are hereby quashed.

iii) W.P.No.31743/2024 is also allowed.

iv) The proceedings pending in FIR No.110/2024 for the offences punishable under Sections 74, 352, and 351(2) of the Bharatiya Nyaya Sanhita, 2023 are hereby quashed.

v) It is, however, made clear that the officials of the State Bank of India shall remain entitled to recover the outstanding loan amount strictly in accordance with law and the petitioners/borrowers shall extend full cooperation for the same.

The pending interlocutory applications, if any, stand

disposed of.

Sd/(SACHIN SHANKAR MAGADUM) JUDGE

VM

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