Sri Narayan Mahadevrao Biradar Vs M/S Padmavathi Enterprises

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1 - NC: 2025:KHC:11767 CRL.P No. 8861 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 20^TH DAY OF MARCH, 2025

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BEFORE

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THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ

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CRIMINAL PETITION NO. 8861 OF 2022

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BETWEEN:

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SRI NARAYAN MAHADEVRAO BIRADAR S/O. MAHADEV AGED ABOUT 67 YEARS, 2, 2ND MAIN, KAREKALLU, KAMAKSHIPALYA, BASAVESHWARANAGAR, BENGALURU - 560 079 (AS GIVEN IN THE PRIVATE COMPLAINT) PRESENTLY RESIDENT AT NO.1, NORTH WOOD LAYOUT, KAVERI NAGAR (VADDARAPALYA), HORAMAVU AGRA ROAD, BENGALURU - 560 043, INDEPENDENT EX DIRECTOR OF M/S KANVA FASHION LTD.

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Digitally signed INDEPENDENT EX DIRECTOR OF by LAKSHMI T M/S KANVA FASHION LTD. Location: High Court of Karnataka (BY SRI. BANDAGAR SHIVAJI, ADVOCATE)

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…PETITIONER

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AND:

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M/S. PADMAVATHI ENTERPRISES, NO.874/7, 5TH MAIN, 5H CROSS, M C LAYOUT, VIJAYANAGARA, BENGALURU - 560 040, A PARTNERSHIP FIRM REPRESENTED BY ITS PARTNERS MR. VISHAL B. SHAH,

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2 - NC: 2025:KHC:11767 CRL.P No. 8861 of 2022

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S/O BIPIN CHANDRA A SHAH, AGED 42 YEARS.

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SMT. AARTI V. SHAH W/O VISHAL B SHAH AGED ABOUT 38 YEARS

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SRI. MEHUL B. SANGHVI S/O BHUPATRAI M SANGHVI AGED ABOUT 45 YEARS

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SMT. NISHA K. SANGHVI W/O KALPANA B SANGHVI AGED ABOUT 45 YEARS

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ALL ARE RESIDING AT: NO.874/7, 5TH MAIN, 5TH CROSS, M.C LAYOUT, VIJAYANAGARA, BENGALURU - 560 040.

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…RESPONDENTS

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(BY SRI. MAKAM NAGARAJA GUPTA, ADVOCATE)

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THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE CRIMINAL PROCEEDINGS IN C.C.NO.4395/2021 ARISING OUT OF PCR NO.6012/2020 ON THE FILE OF THE XXVIII ADDITIONAL METROPOLITAN MAGISTRATE BENGALURU ON THE ALLEGED COMPLAINT BEARING PCR NO.6012/2020 LODGED BY THE RESPONDENTS BEFORE THE HONBLE XXVIII ADDITIONAL METROPOLITAN MAGISTRATE BENGALURU AS ILLEGAL AGAINST THIS PETITIONER IS CONTRARY TO LAW.

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3 - NC: 2025:KHC:11767 CRL.P No. 8861 of 2022

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

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CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ

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ORAL ORDER

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Proceeding in CC.No.4395/2021 arising out of PCR No.6012/2020 on the file of Court of XXVIII Additional Chief Metropolitan Magistrate Court at Bengaluru, is sought to be quashed in this petition preferred by the petitioner/accused No.6.

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A complaint alleging an offence under Section 138 of Negotiable Instruments Act, 1881, was filed by M/s.Padmavathi Enterprises, a partnership firm represented by its partners against one M/s.Kanva Fashions Limited, represented by its Managing Directors.

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One of the contention raised by the learned counsel is that the petitioner arraigned as accused No.6, shown as a Director, was no more a Director as on the date of commission of the offence and filing of the complaint and he resigned from the Company on

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4 - NC: 2025:KHC:11767 CRL.P No. 8861 of 2022

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15.05.2017 and the said resignation was also accepted. In support of the said contention, the learned counsel has produced the resignation letter at Annexure's- B and C wherein, there is an endorsement showing the resignation was accepted.

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Learned counsel has further contended that

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under identical circumstances in respect of the very same company similar complaints were filed and the persons, including the petitioner who ceased to be the Directors approached this Court and by a common order dated 08.09.2023 passed in Crl.P.No.4717/2021 and connected matters, this Court has allowed those petitions and quashed the proceedings.

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Paragraph 5 of the order in WP.No.4717/2021

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c/w matters disposed on 08.09.2023 reads as under:

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"5. Section 141 of the N.I. Act deals with offences by companies and it specifies that if an offence is committed under Section 138 is a company, every person who, at the time of the offence was committed, was incharge of, and was responsible of the company for the conduct of the

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5 - NC: 2025:KHC:11767 CRL.P No. 8861 of 2022

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business of the company, as well as the company shall be deemed to be guilty of the offence."

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As this Court finds that the petitioner has

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ceased to be a Director of the Company and not in charge of the affairs and not responsible for the conduct of business of the Company as on the date of issuance of cheques, the proceedings initiated against him is liable to be quashed. Hence, the following:

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ORDER

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i. Petition is allowed .

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ii. The proceedings in CC.No.4395/2021 pending before the Court of XXVIII Additional Chief Metropolitan Magistrate Court at Bengaluru, insofar as petitioner/accused No.6 is concerned is hereby quashed.

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Sd/(MOHAMMAD NAWAZ) JUDGE

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PK List No.: 1 Sl No.: 23 CT: BHK

Sri Narayan Mahadevrao Biradar v. M/S Padmavathi Enterprises

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Sri Narayan Mahadevrao Biradar v. M/S Padmavathi Enterprises

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