M/S. Tippu Co-Operative Society Ltd. Vs State of Karnataka — Karnataka HC (2025) — LawSathi Research

M/S. Tippu Co-Operative Society Ltd. Vs State of Karnataka — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Dismissed

Issue for consideration

Whether the impugned order dated 04.10.2025 of the learned Magistrate closing Crime No.55/2018 by accepting the B report should be quashed and the proceedings restored, with opportunity to the petitioner to record its sworn statement and be heard.

Court's answer

Setting criminal law into motion after an inordinate delay (offence of 2008-09; complaint lodged in 2018) alleging cheating and criminal breach of trust is an abuse of process of law.

Ratio / Principle

Since the amount was directed to be refunded with 12% interest, the petitioner could have proceeded against respondent No.2/accused in accordance with law to recover the amount, instead of invoking criminal process.

Key takeaways

The police, after conducting investigation, filed a B report.ratio¶38
The petitioner remained absent before the trial Court and, despite several adjournments, there was no representation on the date fixed for recording the sworn statement.ratio¶38
The matter was posted for recording the sworn statement of the complainant on 02.08.2024.ratio

Detailed headnote1 paragraphs

Karnataka HC (Mohammad Nawaz J., 17.11.2025) dismisses CRL.P No. 15354 of 2025 (under S.482 Cr.P.C / S.528 BNSS) filed by M/s. Tippu Co-operative Society Ltd., Tumakuru (de facto complainant), seeking quash of the Principal Senior Civil Judge & CJM, Tumakuru's order dated 04.10.2025 (Annexure-D) closing Crime No.55/2018 of Tumakuru Town Police Station by accepting the police B report, and restoration of proceedings with opportunity to record sworn statement. Background: respondent No.2, society secretary during 2008-09, allegedly misappropriated Rs.11,000/-; Deputy Registrar of Cooperative Society ordered repayment with 12% interest on 27.03.2015, confirmed by Karnataka Appellate Tribunal in Appeal No.157/2015; complaint lodged in 2018. Held: initiating cheating/criminal breach of trust proceedings after such inordinate delay is an abuse of process of law; recovery could have been pursued in accordance with law; police filed B report after investigation; petitioner, despite protest petition, remained absent before the trial Court despite several adjournments (including 02.08.2024, the date for recording sworn statement); no grounds to interfere with the impugned order; petition dismissed.

NC: 2025:KHC:46990 CRL.P No. 15354 of 2025

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17^TH DAY OF NOVEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 15354 OF 2025 (482(Cr.PC) / 528(BNSS))

BETWEEN:

M/S. TIPPU CO-OPERATIVE SOCIETY LTD., 1^ST CROSS, NEW MANDIPETE, TUMAKURU 572 101, REPRESENTED BY ITS SECRETARY, MR.MAZHAR PASHA.

…PETITIONER

(BY SRI. RAMESH K R., ADVOCATE)

AND:

STATE OF KARNATAKA

Digitally signed by LAKSHMI T Location: High Court of Karnataka

BY TUMAKURU TOWN POLICE STATION, TUMAKURU, BY STATE PUBLIC PROSECUTOR HIGH COURT BUILDINGS, BENGALURU 560 001.

MR. KALEEM PASHA S/O LATE MOHAMMED AMEER, AGED MAJOR, NO. 1816, 1^ST A CROSS, S S PURAM, TUMAKURU 572 101, PRESENTLY RESIDENT AT C/O MILITARY RANGAPPA,

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NC: 2025:KHC:46990 CRL.P No. 15354 of 2025

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NEAR INDIRA COLLEGE, UPPARAHALLI, TUMAKURU 572 102.

…RESPONDENTS

(BY SRI. B N JAGADEESHA, ADDL.SPP, FOR R1)

THIS CRL.P IS FILED UNDER SECTION 482(FILED U/S.528 BNSS) CR.P.C TO QUASH THE IMPUGNED ORDER DATED 04.10.2025 PASSED BY THE LEARNED PRINCIPAL SENIOR CIVIL JUDGE AND CJM, TUMAKURU IN CRIME NO.55/2018 OF TUMAKURU TOWN POLICE STATION AT ANNEXURE D AND THEREBY RESTORE THE PROCEEDINGS IN CRIME NO.55/2018 WITH A DIRECTION TO THE TRIAL COURT TO DISPOSE OF THE SAME IN ACCORDANCE WITH LAW AFTER GIVING OPPORTUNITY TO THE PETITIONER TO RECORD SWORN STATEMENT AND OPPORTUNITY OF BEING HEARD TO THE PETITIONER.

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

CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ

ORAL ORDER

Petitioner, de facto complainant has alleged that respondent No.2/accused was working as secretary in the complainant society during 2008-09, during which time, he misappropriated a sum of Rs.11,000/-. In this connection,

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case was registered before the Deputy Registrar of Cooperative Society, which ordered on 27.03.2015 that the said amount shall be paid by the accused with 12% interest. The said order was also confirmed by the Karnataka Appellate Tribunal in Appeal No.157/2015. It is alleged that inspite of the same, the accused has not paid the said amount and thereby committed cheating, criminal breach of trust etc.,

Learned counsel for petitioner has contended that challenging the B report submitted by the Police, petitioner filed a protest petition, however, learned Magistrate vide impugned order dated 04.10.2025 has closed the case, by accepting the B report. He further contended that public money is involved in this case and therefore, the trial Court ought not to have accepted the B report and closed the case.

The offence is alleged to have been committed

by the accused in the year 2008-09. The complaint was

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lodged in the year 2018. The allegations are that petitioner while working as secretary in the society during 2008-09 misappropriated a sum of Rs.11,000/-, while amount was directed to be paid with 12% interest by the Deputy Registrar of Cooperative Society, Tumakur and the same was confirmed by the Karnataka Appellate Tribunal, but the said amount was not paid.

If there was a direction to refund the amount with 12% of interest, the petitioner could have proceeded against respondent No.2/accused in accordance with law, to recover the amount. However, setting criminal law into motion after an inordinate delay alleging cheating and criminal breach of trust is an abuse of process of law. Furthermore, the police after conducting a through investigation have filed a B report. No doubt, the petitioner has filed the protest petition, however, impugned order shows that the petitioner has remained absent before the trial Court and inspite of several adjournments there was no representation from

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02.08.2024, date on which the matter was posted for recording the sworn statement of the complainant. Vide order dated 04.10.2025, the learned Magistrate has closed the case, accepting the B-report. No grounds are made

out to interfere with the impugned order.

Petition is dismissed .

Sd/(MOHAMMAD NAWAZ) JUDGE

ASN List No.: 1 Sl No.: 15