Dismissed¶¶39

Mr.Amitava Samanta v. M/S. Kurlon Limited

Karnataka HC26 Nov 2025CRL.P/6783/2020

Case brief

AI extract

What is this about?

Section 138 NI Act cheque-dishonour prosecution; Section 482 Cr.P.C. quashing petition DISMISSED; drawer who issued cheque as personal guarantor in personal capacity alone impleaded as accused; borrower company M/s.India Green Reality Limited held not a necessary party; petitioner's liability to pay left to trial; C.C.No.54697/2019 (P.C.R.No.54035/2019), XXXIV A.C.M.M. Bengaluru; complainant/respondent M/s. Kurlon Limited; petitioner Mr. Amitava Samanta; coram M.I. Arun, J.; NC: 2025:KHC:49175.

What did the court decide?

Under Section 138 of the Negotiable Instruments Act, 1881, when a person issues a cheque towards a legally dischargeable debt and the same is dishonoured, proceedings can be initiated against him by the person in whose favour the cheque was issued. ¶¶32

Mr.Amitava Samanta Vs M/S. Kurlon Limited — Cheque Dishonour | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Dismissed

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Issue for consideration

Whether the proceedings in C.C.No.54697/2019 under Section 138 NI Act, initiated against the petitioner alone (who issued the cheque as personal guarantor in his personal capacity) without making M/s.India Green Reality Limited a party, are liable to be quashed. +1 more

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Court's answer

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Ratio / Principle

In proceedings initiated under Section 138 of the Act, the respondent (in whose favour the cheque was issued) can only implead the petitioner - who admittedly issued the cheque as a guarantor in his personal capacity - as an accused, and not the Company; and it has been rightly done so.

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Key takeaways

Whether the petitioner is liable to pay the amounts is a matter of trial to be decided by the trial Court; there is no error in the manner in which the proceedings in C.C.No.54697/2019 have been conducted.ratio¶¶33
It is not a fit case to interfere in exercise of this Court's powers under Section 482 of Cr.P.C.ratio¶¶38

Detailed headnote1 paragraphs

High Court of Karnataka (M.I. Arun, J.), CRL.P No. 6783 of 2020, decided 26-11-2025: Dismisses a petition under Section 482 Cr.P.C. seeking quashing of proceedings in C.C.No.54697/2019 (P.C.R.No.54035/2019) before the XXXIV A.C.M.M., Bengaluru, instituted under Section 138 of the Negotiable Instruments Act, 1881 by M/s. Kurlon Limited against the petitioner, a Director of M/s.India Green Reality Limited who had issued the dishonoured cheque as personal guarantor in his personal capacity, on the ground that the borrower-company was not made a party. Held: in Section 138 proceedings the person in whose favour the cheque was issued can only implead the drawer-petitioner as accused and not the Company, and this was rightly done; whether the petitioner is liable to pay the amounts is a matter of trial for the trial Court; no error in the conduct of the proceedings; petition dismissed, pending interlocutory applications disposed of.

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NC: 2025:KHC:49175 CRL.P No. 6783 of 2020

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26^TH DAY OF NOVEMBER, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE M.I.ARUN CRIMINAL PETITION NO.6783 OF 2020

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(482 (Cr.PC)/528(BNSS))

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BETWEEN:

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MR. AMITAVA SAMANTA

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AGED 39 YEARS S/O LATE SHRI. DILIPKUMAR SAMANTA,

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NO.1/2, PURBACAHAL NORTH NIBEDITA ROAD, HALTU PO-HALTU, KOLKATA-700 078.

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…PETITIONER

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(BY SRI CAPT. ASHOK NAIK, ADVOCATE)

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AND:

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Digitally signed by GEETHA P G Location: HIGH COURT OF KARNATAKA

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M/S. KURLON LIMITED NO.302, 3^RD FLOOR, NORTH BLOCK, MANIPAL CENTER, NO.47, DICKENSON ROAD, BANGALORE-560 042 REPRESENTED BY AUTHORISED SIGNATORY AND SECRETARIAL OFFICER MR. S. KRISHNA PRASAD.

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…RESPONDENT

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THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF THE CODE OF CRIMINAL PROCEDURE, PRAYING TO QUASH THE PROCEEDINGS IN C.C.NO.54697/2019 (P.C.R. NO.54035/2019), ON THE FILE OF HON'BLE COURT OF THE XXXIV A.C.M.M., BENGALURU, INITIATED AGAINST THE PETITIONER, ETC.

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NC: 2025:KHC:49175 CRL.P No. 6783 of 2020

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HC-KAR

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THIS PETITION, COMING ON FOR ORDERS THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR. JUSTICE M.I.ARUN

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ORAL ORDER

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The respondent has initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881 (for short 'the Act') against the petitioner herein in C.C.No.54697/2019 pending on the file of the XXXIV Additional Chief Metropolitan Magistrate, Bangalore. The present criminal petition is filed challenging the same with the following prayers:-

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"(i) Quash the proceedings in C.C.No.54697/2019 (P.C.R.No.54035/2019), on the file of the Hon'ble Court of the XXXIV A.C.M.M. Bangalore, initiated against the Petitioner.

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(ii) Grant such other relief or reliefs as deemed fit proper in the circumstances of the case."

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The case of the petitioner is that one M/s.India Green Reality Limited had borrowed a loan from the respondent herein and that the petitioner being a Director of the said Company and as a personal guarantor has issued a cheque in favour of the respondent in his personal capacity. It is his

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3 - NC: 2025:KHC:49175 CRL.P No. 6783 of 2020

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HC-KAR

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contention that the respondent ought to have made M/s.India Green Reality Limited, a party to the proceedings, which it has not done before the trial Court. On the said ground, it is prayed that the proceedings in C.C.No.54697/2019 be quashed.

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Under Section 138 of the of the Negotiable Instruments Act, 1881, when a person issues a cheque towards a legally dischargeable debt and the same is dishonoured, then in that event, proceedings can be initiated against him by the person in whose favour the cheque was issued. In the instant case, admittedly, the petitioner has issued a cheque as a guarantor in his personal capacity in favour of the respondent. The respondent has deposited the same in the Bank and the same has been dishonoured. Under the circumstances, the respondent can only implead the petitioner as an accused and not the Company in proceedings initiated under Section 138 of the Act and it has been rightly done so.

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Whether the petitioner is liable to pay the amounts or not is a matter of trial, which has to be decided by the trial Court. There is no error in the manner in which the proceedings in C.C.No.54697/2019 have been conducted.

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NC: 2025:KHC:49175 CRL.P No. 6783 of 2020

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HC-KAR

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