M/S Techspan Engineering Pvt. Ltd. Vs Mr Govinda Raju… — Cheque Dishonour | Karnataka HC (2025)

M/S Techspan Engineering Pvt. Ltd. Vs Mr Govinda Raju… — Cheque Dishonour | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Both petitions allowed in terms of the joint memo of settlement: (i) proceedings in C.C.No.560/2019 dated 15.01.2019 (Annexure-L) quashed; (ii) entire proceedings in the complaint and the order dated 29.06.2019 taking cognizance and issuing process in P.C.R.No.8178/2019 registered as C.C.No.15315/2019 quashed; (iii) Registry directed to send copy of the order to the trial Court forthwith; per the settlement terms, respondent entitled to the fixed deposits of Rs.9,00,000/- with accrued interest and to refund of court fees (suit and counter claim), having received Demand Draft No.005731 of Rs.1,80,000/- towards full and final settlement.

Issue for consideration

Whether the summons issued in proceedings C.C.No.560/2019 (Annexure-L) dated 15.1.2019 on the file of the XXII Additional Chief Metropolitan Magistrate, Bangalore, should be quashed. +1 more

Court's answer

The proceedings in C.C.No.560/2019 dated 15.01.2019 (Annexure-L) on the file of XXII Additional Chief Metropolitan Magistrate, Bengaluru, stand quashed.

Ratio / Principle

The terms and conditions of the compromise arrived at between the parties through the joint memo are legal and equitable and the same is accepted by the Court.

Key takeaways

In terms of the compromise, WP No.9592/2019 filed under Articles 226 and 227 of the Constitution of India read with Section 482 of Cr.P.C and CRL.P No.5995/2019 filed under Section 482 of Cr.P.C are allowed.ratio¶¶95
The entire proceedings in the complaint and the order dated 29.06.2019 taking cognizance of the offence passed in P.C.R No.8178/2019 registered as C.C No.15315/2019 on the file of XXII Addl. Chief Metropolitan Magistrate, Bengaluru, stand quashed.ratio¶¶100

Detailed headnote1 paragraphs

Settlement/compromise – quashing of S.138 NI Act prosecutions: On a joint memo of settlement signed by both sides and their counsel, the High Court of Karnataka (J.M. Khazi, J.) held the compromise terms legal and equitable and allowed WP No.9592/2019 (Articles 226 and 227 of the Constitution read with Section 482 Cr.P.C) and CRL.P No.5995/2019 (Section 482 Cr.P.C) filed by M/s Techspan Engineering Pvt Ltd and its directors against Govinda Raju Narayan. The summons in C.C.No.560/2019 dated 15.01.2019 (Annexure-L) and the entire proceedings in the complaint and the cognizance/process order dated 29.06.2019 in P.C.R.No.8178/2019 registered as C.C.No.15315/2019 (XXII Addl. Chief Metropolitan Magistrate, Bengaluru) for offence under Section 138 N.I Act were quashed. Per the settlement, the respondent is entitled to the fixed deposits of Rs.9,00,000/- (Rs.4,50,000/- plus Rs.4,50,000/-) with accrued interest and refund of court fees (suit claim and counter claim in Com.O.S.No.7029/2019, CCH-87), and received Rs.1,80,000/- by Demand Draft No.005731 dated 16/07/2025 towards full and final settlement; the parties conceded no further claims against each other. Registry directed to send copy of the order to the trial Court forthwith.

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NC: 2025:KHC:27088 WP No. 9592 of 2019 C/W CRL.P No. 5995 of 2019

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16^TH DAY OF JULY, 2025

BEFORE

THE HON'BLE MS. JUSTICE J.M.KHAZI WRIT PETITION NO. 9592 OF 2019 (GM-RES)

C/W

CRIMINAL PETITION NO. 5995 OF 2019

IN WP No. 9592/2019

BETWEEN:

M/S TECHSPAN ENGINEERING PVT LTD A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 REP. BY ITS MANAGING DIRECTOR MR SANTOSH PALAN NARAYAN

AGED ABOUT 41 YEARS,

Digitally signed by REKHA R Location: High Court of Karnataka

SMT SHEETHAL MADDODI DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD AGED ABOUT 41 YEARS,

SMT SHAKUNTHALA DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD AGED ABOUT 68 YEARS,

SRI SATHVIK SHRINIVASA RAO DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD AGED ABOUT 36 YEARS,

SRI MAHESH KUMAR LAKKAPPA L DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD AGED ABOUT 41 YEARS,

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SRI RAMAN TADEPALLI DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD AGED ABOUT 58 YEARS,

REGD OFFICE AT # 410 "ADITHI" 1ST MAIN ROAD, NEW BINNY LAYOUT BANGALORE-560 023

…PETITIONERS

(BY SRI. KHUSHAL.V., ADV. FOR SRI.HARIKRISHNA S HOLLA., ADV.)

AND:

MR GOVINDA RAJU NARAYAN NO.41/1 1ST MAIN ROAD, 2ND CROSS, NEW KEMPEGOWDA LAYOUT, BSK 3RD STAGE, KATHRIGUPPE, BANGALORE -560 085.

…RESPONDENT

(BY SRI.K.MOHAN., ADV.FOR SRI. T V VIJAYA RAGHAVAN., ADV.)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-CALL FOR RECORDS ON THE FILE OF XXII ADDITIONAL CHIEF METROPOLITAN MAGISTRATE AT BANGALORE AND QUASH SUMMONS ISSUED IN PROCEEDINGS IN C.C.NO.560/2019 (ANNEXURE-L) DATED 15.1.2019.

IN CRL.P NO. 5995/2019

BETWEEN:

M/S. TECHSPAN ENGINEERING PVT. LTD ., REPRESENTED BY ITS MANAGING DIRECTOR, SANTHOSH PALAN NARAYAN, RAMANA TADEPALLI, AGED ABOUT 42 YEARS

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SRI. SANTHOSH PALAN NARAYAN EX MANAGING DIRECTOR S/O NARAYAN PALAN, M/S TECHSPAN ENGINEERING PVT. LTD., AGED ABOUT 42 YEARS,

SMT. SHEETHAL MADDODI EX DIRECTOR S/O NOT KNOWN M/S TECHSPAN ENGINEERING PVT LTD., AGED ABOUT 41 YEARS,

SMT. SHAKUNTHALA EX DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD., W/O SRINIVAS RAO,

AGED ABOUT 68 YEARS,

SRI. SATHVIK SHRINIVASA RAO EX DIRECTOR. M/S TECHSPAN ENGINEERING PVT LTD., S/O SRINIVAS RAO, AGED ABOUT 35 YEARS

SRI. MAHESH KUMAR LAKKAPPA L EX DIRECTOR M/S TECHSPAN ENGINEERING PVT LTD., S/O LAKKAPPA, AGED ABOUT 42 YEARS

SRI. RAMAN TADEPALLI DIRECTOR, M/S EX. TECHSPAN ENGINEERING PVT LTD., AGED ABOUT 59 YEARS, ALL ARE AT THEIR REGISTERED OFFICE AT

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NC: 2025:KHC:27088 WP No. 9592 of 2019 C/W CRL.P No. 5995 of 2019

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NO.410, ADITHI 1ST MAIN ROAD, NEW BINNY LAYOUT, BENGALURU - 560 023.

AND ALSO AT NO.21, RAJASHREE MANSION, SANTHRUPTI NAGAR, KOTTANUR, DINNE MAIN ROAD, J.P.NAGAR, 7TH PHASE, BENGALURU - 560 078.

...PETITIONERS

(BY SRI. KUSHAL V, ADVOCATE FOR SRI. PRASAD K.R. RAO, ADVOCATE)

AND:

SRI. GOVINDA RAJU NARAYAN AGED ABOUT 48 YEARS, SON OF SRI. S.R.NARAYAN RESIDING AT NO. 41/1, 1ST MAIN ROAD, 2ND CROSS, NEW KEMPEGOWDA LAYOUT BSK 3RD STAGE, KATHRIGUPPE BENGALURU - 560 078.

...RESPONDENT

(BY SRI. K. MOHAN, ADVOCATE)

THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH THE COMPLAINT AND THE ORDER DATED 29.06.2019, TAKING COGNIZANCE OF THE OFFENCE AND ISSUANCE OF PROCESS TO THE PETITIONERS, PASSED IN P.C.R.NO.8178/2019 REGISTERED AS C.C.NO.15315/2019 ON THE FILE OF XXII ADDL.C.M.M., BENGALURU FOR THE OFFENCE P/U/S 138 OF N.I. ACT.

THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MS. JUSTICE J.M.KHAZI

ORAL ORDER

Sri. Santhosh Palan Narayan, who is petitioner No.2 in CRL.P No.5995/2019 is present. Sri. Govinda Raju Narayan, who is respondent in both the petitions is also present and their respective counsels are present.

WP No.9592/2019 is filed by petitioners under Articles 226 and 227 of Constitution of India read with Section 482 of Cr.P.C, to quash the summons issued in C.C.No.560/2019 dated 15.01.2019 and CRL.P No.5995/2019 is filed by the petitioners/accused Nos.1 to 7 under Section 482 of Cr.P.C, to quash the complaint and the order dated 29.06.2019, taking cognizance of the offence and issuance of process to the petitioners, passed in P.C.R No.8178/2019 registered as C.C No.15315/2019 on the file of XXII Addl. Chief Metropolitan Magistrate, Bengaluru, under Section 138 of N.I Act.

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3. A joint memo duly signed by both the

petitioners and respondent and their respective counsel is filed. The terms and conditions of settlement arrived at between the parties reads as under:

" The Petitioners/Appellants and the Respondent herein respectfully submit as follows:

1. That the Respondent herein initiated proceedings against the Petitioners/Appellants for the offence punishable Under Section 138 of Negotiable Instruments Act in C.C.No.560/2019 and C.C.No. 15315/2019, the above Writ Petition and Criminal Appeal have been preferred respectively against the said criminal cases.

2. That the Petitioners/Appellants have also preferred an Original Suit in O.S.No.7029/2019 praying for damages and other reliefs. Wherein as per orders dated 26.09.2019 while granting the interim order of Temporary Injunction against Respondent herein the Petitioners/Appellants were directed to deposit remaining two cheques amount of Rs.4,50,000/- each. Accordingly, the Petitioners/Appellants also deposited a sum of Rs.4,50,000/- plus Rs.4,50,000/- totaling a sum of Rs.9,00,000/(Rupees Nine Lakh only) in O.S.No.7029/2019 (CCH-44).

3. Thereafter the said suit transferred to commercial Court, thus the suit in Com.O.S.7029/2019 presently pending before Commercial Court (CCH-87). In the said suit the Respondent has prayed for counter claim and also paid Court fee.

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4. That the Petitioners/Appellants have preferred a Writ Petition in W.P.No.20926/2021 against the interim orders in Com.O.S.No.7029/2019 dated 29.07.2021 against the acceptance of written statement by condoning the delay and obtained stay of the proceedings in Com.O.S.No 7029/2019.

5. At the intervention of elders and well wishers the parties have sorted out the differences and the matter is settled amicably between the Petitioners/Appellants and the Respondent. Towards full and final settlement of the claim of the Respondent the Petitioners/Appellants have offered pay the following amount which includes the amount in Fixed Deposit, Court Fee paid by the Petitioners/Appellants and Demand Draft offered today as follows, which has been accepted by the Respondent:

a) That the Respondent is entitled to the amount in deposit (Fixed Deposit) i.e., Rs.4,50,000/plus Rs.4,50,000/- totaling Rs.9,00,000/- (Rupees Nine Lakh only) alongwith interest accrued thereon and the Respondent is entitled to withdraw the said amount.

b) The Respondent is further entitled for claiming refund of Court Fee paid by the Petitioners/Appellants in O.S.No.7029/2019 presently Com.O.S.No.7029/2019 and the Respondent is entitled to withdraw the said Court Fee.

c) Further the Respondent is also entitled to refund of Court Fee paid by him towards his counter claim in Com.O.S.No.7029/2019 (CCH-87) and the Respondent is entitled to withdraw the said Court Fee.

d) That the Petitioners/Appellants have paid a sum of Rs.1,80,000/-(Rupees One Lakh Eighty Thousand only)

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by Demand Draft bearing No 005731 drawn in favour of the Respondent and drawn on 16/07/2025.

e) That the Petitioners/Appellants have moved a Memo of Withdrawal in order to withdraw their writ petition in W.P.No.20926/2021, since the same becomes infructuous in view of the matter is settled out of Court.

f) In view of the above compromise the criminal cases in C.C.No.560/2019 and C.C.No.15315/2019 initiated by the Respondent be quashed.

g) In view of the above compromise the commercial original suit in Com.O.S.No.7029/2019 pending before CCH-87 be dismissed as settled out of Court thereby directing refund of entire Court Fee paid both by the Petitioners/Appellants and Respondent towards suit claim and counter claim in favour of the Respondent himself.

h) That the parties herein concede that they have no further claim of whatever nature against each other

WHEREFORE, both the Petitioners/Appellants and Respondent herein pray that this Hon'ble Court be pleased to dispose of the above Writ Petition and Criminal Appeal in terms of the joint memo thereby directing the commercial court to refund the total amount in fixed deposit in O.S.No.7029/2019 (deposited by Petitioners/Appellants) alongwith interest accrued thereon in favour of the Respondent and further to direct the commercial Court to refund entire Court Fee paid by the Petitioners/Appellants in Com.O.S.No.7029/2019 in favour of the Respondent and also to direct further refund of Court Fee paid by the Respondent towards counter claim in Com O.S.No.7029/2019 in favour of the Respondent in the interest of justice and equity”.

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4. Both the parties admit the compromise. The

respondent submits that he has no objection to allow the petitions and the respondent also reports the receipt of demand draft of Rs.1,80,000/- bearing No.005731. The

terms and conditions of compromise are legal and equitable. The same is accepted and accordingly, following:

ORDER

i) WP No.9592/2019 filed under Articles 226 and 227 of Constitution of India read with Section 482 of Cr.P.C and CRL.P No.5995/2019 filed under Section 482 of Cr.P.C are allowed.

ii) The proceedings in C.C.No.560/2019 dated 15.01.2019 (Annexure-L) on the file of XXII Additional Chief Metropolitan Magistrate, Bengaluru, is hereby quashed.

iii) The entire proceedings in complaint and the order dated 29.06.2019, taking cognizance

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of the offence passed in P.C.R No.8178/2019 registered as C.C No.15315/2019 on the file of XXII Addl.Chief Metropolitan Magistrate, Bengaluru, is hereby quashed.

iv) The Registry is directed to send copy of this order to the trial Court forthwith.

Sd/(J.M.KHAZI) JUDGE

KBM

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