Mr. Padmanabhaiah Vs M/S Sumukha Enterprises — Cheque Dishonour | Karnataka HC (2025)

Mr. Padmanabhaiah Vs M/S Sumukha Enterprises — Cheque Dishonour | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition disposed of on amicable settlement: both judgments (trial and appellate) set aside; accused acquitted; amount in deposit released to the complainant/respondent; bail bond cancelled; complainant to retain deposited amount and the additional Rs.70,000/- paid by demand draft towards full and final settlement.

Issue for consideration

Whether the criminal revision petition against the concurrent findings of conviction under Section 138 of the Negotiable Instruments Act should be disposed of in view of the amicable settlement arrived at between the parties, with consequential setting aside of the trial and appellate judgments, acquittal of the accused, and release of the deposited amount to the complainant.

Court's answer

The Court accepted the amicable settlement between the parties, evidenced by the joint memo filed by the petitioner and the respondent which was taken on record, and accordingly disposed of the criminal revision petition.

Ratio / Principle

The judgment dated 08.10.2020 of the Additional Chief Metropolitan Magistrate, Bengaluru in C.C.No.556/2019 and the judgment dated 20.01.2023 of the Sessions Judge, Bengaluru in Criminal Appeal No.771/2020 were set aside.

Key takeaways

The amount in deposit was ordered to be released in favour of the complainant/respondent.ratio¶45
The bail bond of the accused stands cancelled.ratio¶46
The accused (petitioner) was acquitted.ratio¶47

Detailed headnote1 paragraphs

Criminal Revision Petition (CRL.RP No. 506 of 2023, filed u/S. 397 r/w 401 Cr.P.C.) by Padmanabhaiah against the concurrent convictions under S.138 of the Negotiable Instruments Act — trial court (XXII ACMM, Bengaluru, C.C.No.556/2019) had by judgment dated 08.10.2020 sentenced him to a fine of Rs.1,50,000/- for dishonour of a cheque of Rs.1,22,731/-, and the LXIII Addl. City Civil and Sessions Judge (CCH-64), Bengaluru had confirmed the conviction on 20.01.2023 in Crl.Apl.No.771 of 2020. Before the High Court the parties reported an amicable settlement: 50% of the fine lay in deposit, and the accused additionally paid Rs.70,000/- by demand draft (No.496867 dated 08.08.2025, Central Bank of India) towards full and final settlement, which the complainant acknowledged; the joint memo was accepted. The High Court (Hon'ble Mr. Justice Anant Ramanath Hegde, 11.08.2025) disposed of the petition, set aside both judgments, acquitted the accused, ordered release of the deposit in favour of the complainant, and cancelled the bail bond.

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NC: 2025:KHC:31031 CRL.RP No. 506 of 2023

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11^TH DAY OF AUGUST, 2025

BEFORE

THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE CRIMINAL REVISION PETITION NO. 506 OF 2023

BETWEEN:

MR PADMANABHAIAH, S/O LATE C VENKATASWAMI, AGED ABOUT 64 YEARS, CHAIRMAN VILLAGE STUDIO RESORT AND SPA, SY NO.143/2A, NANDINI HILLS CROSS, HEGGADAHALLI POST, TUBEGER HOBLI, DODDABALLAPURA TALUK, BENGALURU RURAL-561205.

…PETITIONER

(BY SRI NAGARAJA K G, ADVOCATE)

AND:

Digitally signed by C HONNUR SAB Location: HIGH COURT OF KARNATAKA

M/S SUMUKHA ENTERPRISES, HAVING ITS OFICE AT NO.74, 5^TH CROSS, JAIMARUTHINAGAR, YESHWANTHPUR, BENGALURU-560022, REP. BY ITS PROPRIETOR S ANAND.

…RESPONDENT (BY SMT MALAVIKA C, ADVOCATE FOR SMT URMILA PULLAT, ADVOCATE)

THIS CRL.RP IS FILED U/S. 397 R/W 401 CR.P.C PRAYING TO SET ASIDE THE JUDGMENT AND ORDER OF CONVICTION ORDER DATED 08.10.2020, IN C.C.NO.556 OF 2019 PASSED BY THE XXII ACMM, AT BENGALURU AND ALSO SET ASIDE THE ORDER DATED 20.01.2023 PASSED IN CRL.APL.NO.771 OF 2020 ON THE FILE OF THE LXIII ADDL. CITY CIVIL AND SESSIONS JUDGE, (CCH-64) AT BENGALURU WHERE THE APPELLANT COURT HAS CONFIRMED THE ORDER OF CONVICTION AND ACQUIT THE PETITIONER FOR THE OFFENCE P/U/S 138 OF NEGOTIABLE INSTRUMENT ACT.

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NC: 2025:KHC:31031 CRL.RP No. 506 of 2023

HC-KAR

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

CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE

ORAL ORDER

Office objections are over-ruled.

This petition is against the concurrent finding of

the Courts below under Section 138 of the Negotiable Instruments Act. Petitioner is sentenced to pay fine of Rs.1,50,000/- on account of dishonour of cheque of Rs.1,22,731/-.

Learned counsel for the petitioner submits that petitioner has deposited 50% of the fine amount before the Trial Court. Respondent/complainant has filed an application for release of the said amount.

Learned counsel for the petitioner submits that dispute is amicably settled.

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NC: 2025:KHC:31031 CRL.RP No. 506 of 2023

HC-KAR

Petitioner/accused is present before the Court. Respondent/complainant is also present before the Court. Parties are identified by their respective counsel.

Learned counsel for the petitioner and the respondent jointly submit that in addition to the amount in deposit, accused has agreed to pay Rs.70,000/towards full and final settlement of his claim which the complainant has agreed to receive.

Complainant who is present before the Court

admits that dispute is settled and he is entitled to withdraw the amount in deposit, and also Rs.70,000/- to be paid by way of demand draft.

Petitioner has also handed over a demand draft bearing No.496867 dated 08.08.2025 for Rs.70,000/drawn on Central Bank of India. The complainant who is present before the Court acknowledges the demand draft.

Considering the submissions, settlement is accepted.

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NC: 2025:KHC:31031 CRL.RP No. 506 of 2023

HC-KAR

Joint memo filed by the petitioner and the

respondent is accepted and is taken on record.

Hence, the following:

ORDER

(i) Petition is disposed of .

(ii) The judgment dated 08.10.2020 passed by the Additional Chief Metropolitan Magistrate, Bengaluru in C.C.No.556/2019 and the judgment dated 20.01.2023 passed by the Sessions Judge, Bengaluru in Criminal Appeal No.771/2020 are set-aside.

(iii) The amount in deposit shall be released in favour of the complainant/respondent.

(iv) Bail bond stands cancelled.

(v) Accused is acquitted.

Sd/(ANANT RAMANATH HEGDE) JUDGE

BRN List No.: 2 Sl No.: 7