Allowed

Mrs Shobha v. State of Karanataka

Karnataka HC20 Aug 2026CRL.P/258/2024

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed multiple writ and criminal petitions seeking quashing of proceedings under the Chit Funds Act where the chit fund company was not included as an accused, relying on the Anee t Hada judgment.

What did the court decide?

Complaints FIR chargesheet and criminal proceedings were quashed qua petitioners; liberty granted to State to implead the chit fund company.

Mrs Shobha Vs State of Karanataka — Cheque Dishonour | Karnataka HC (2026)

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HC-KAR

¶2

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20^TH DAY OF AUGUST, 2026

¶6

BEFORE

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THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 21512 OF 2026 (GM-RES)

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C/W

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CRIMINAL PETITION NO. 170 OF 2024 CRIMINAL PETITION NO. 175 OF 2024 CRIMINAL PETITION NO. 213 OF 2024 CRIMINAL PETITION NO. 225 OF 2024 CRIMINAL PETITION NO. 230 OF 2024 CRIMINAL PETITION NO. 254 OF 2024 CRIMINAL PETITION NO. 258 OF 2024 CRIMINAL PETITION NO. 271 OF 2024 CRIMINAL PETITION NO. 292 OF 2024 CRIMINAL PETITION NO. 307 OF 2024

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Digitally signed by PADMAVATHI B K Location: High Court of Karnataka

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IN WP No. 21512/2026

¶12

BETWEEN:

¶13

MR. PADMANABHA @ RAVI, AGED ABOUT 55 YEARS, S/O. K.T KENCHAIAH.

¶14

SMT. SHOBHA, AGED ABOUT 45 YEARS, W/O PADMANABHA @ RAVI.

¶15

BOTH ARE R/AT NO.149/3, 2ND FLOOR, MANJUNATHA COMPLEX,

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HC-KAR

¶17

¶18

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶20

BYRASANDRA MAIN ROAD, EAST JAYANAGAR, 1ST BLOCK, BENGALURU 560 011.

¶21

…PETITIONERS

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(BY SRI. SHRIRAMA ADIGA, ADVOCATE)

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AND:

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STATE OF KARNATAKA, SIDDAPURA PS, REP. BY HCGP, HIGH COURT OF KARNATAKA-560001.

¶25

SMT. NAGARATHNA, AGED ABOUT 61 YEARS, W/O RAMANNA, R/AT NO. 27, 3RD CROSS, 4TH MAIN, LALBAGH, SIDDAPURA, BENGALURU CITY - 560011.

¶26

…RESPONDENTS

¶27

(BY SRI B.N JAGADEESHA, SPP-I A/W SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶28

THIS WP IS FILED UNDER ARITCLE 226 R/W 482 OF THE CRIMINAL PROCEDURE CODE, 1973, PRAYING TO A. ISSUE A WRIT OF CERTIORARI QUASH THE COMPLAINT FILED BY RESPONDENT NO.2 BEFORE RESPONDENT NO.1 POLICE DATED 24.04.2016. VIDE ANNEXURE-A IN SO FAR AS THE PETITIONER IS CONCERNED AND ETC.

¶29

IN CRL.P NO. 170/2024

¶30

BETWEEN:

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MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

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SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH,

¶33

¶34

HC-KAR

¶35

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

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AGED ABOUT 57 YEARS.

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BOTH ARE R/AT HOUSE NO. 149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE 560011.

¶39

...PETITIONERS

¶40

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶41

AND:

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STATE OF KARNATAKA, SIDDAPURA P.S, JAYANAGAR SUB-DIVISION, BANGALORE.

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REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, KARNATAKA, BANGALORE-560001.

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SMT. KASTHURI, W/O DHANAPAL CHITTIYAR, AGED ABOUT 55 YEARS, R/AT NO. 23, 2ND MAIN, SAKAMMA GARDEN, BASAVANAGUDI, BENGALURU-560004.

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KUMAR, S/O LATE RAMAKRISHNAIAH, AGED ABOUT 49 YEARS.

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PADAMAVATHI @ PADMA, W/O LATE RAMAKRISHNAIAH, AGED ABOUT 56 YEARS.

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MADHU, S/O LATE RAMAKRISHNAIAH,

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HC-KAR

¶49

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶50

¶51

CNR: KAHC010471632026

¶52

AGED ABOUT 24 YEARS.

¶53

RESP. NO.3 TO 5 ARE R/AT NO. 16/1, 1ST CROSS, 1ST MAIN, BYRASANDRA, JAYANAGAR 1ST BLOCK, BANGALORE CITY.

¶54

...RESPONDENTS

¶55

(BY SRI. B.N. JAGADEESHA, SPP-I A/W

¶56

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶57

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12672/2019 PENDING BEFORE THE IV A.C.J.M, BENGALURU, REGISTERED BY THE SIDDAPURA P.S., (RESP.NO.1 HEREIN) AGAINST THE PETITIONERS ON 20.04.2017 FOR THE OFFENCE P/U/S 406, 420, 120B R/W SEC.34 OF IPC A/W SEC.76 OF THE CHIT FUND ACT.

¶58

IN CRL.P NO. 175/2024

¶59

BETWEEN:

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MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶61

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶62

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE-560011.

¶63

...PETITIONERS

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(BY SRI. DHANANJAYA N.R, ADVOCATE)

¶65

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶69

AND:

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STATE OF KARNATAKA, SIDDAPURA P S, JAYANAGAR SUB DIVISION, BANGALORE, REP. BY PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560001.

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SYED MOKTHAR AHMED, S/O SYED ABDHUL AJEEJ, AGED ABOUT 60 YEARS, R/AT NO.11/1, 9TH CROSS, 4TH MAIN, JAYANAGAR 1 BLOCK, EAST BYRASANDRA, BENGALURU-560011.

¶72

...RESPONDENTS

¶73

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶74

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶75

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12552/2019 PENDING BEFORE THE IV ADDL.C.M.M., BENGALURU REGISTERED BY SIDDAPURA POLICE STATION (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS ON 01.03.2017 FOR THE OFFENCE P/U/S 406, 420, 120B R/W 34 OF IPC AND SECTION 76 OF CHIT FUND ACT, 1982.

¶76

IN CRL.P NO. 213/2024

¶77

BETWEEN:

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MRS. SHOBHA, W/O SRI. K. PADMANABHA @ RAVI, AGED ABOUT 46 YEARS.

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SRI. PADMANABHA @ RAVI, S/O LATE K.J. KENCHAIAH, AGED ABOUT 49 YEARS.

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HC-KAR

¶81

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶82

¶83

CNR: KAHC010471632026

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BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE - 560 011.

¶85

...PETITIONERS

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(BY SRI. DHANANJAYA N R, ADVOCATE)

¶87

AND:

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STATE OF KARNATAKA, SIDDAPURA P.S., JAYANAGAR SUB-DIVISION, BANGALORE, REP. BY PUBLIC PROSECUTOR.

¶89

SRI. GOKU K, S/O KUPPA SWAMY, AGED ABOUT 54 YEARS, R/AT NO.707, MAHALINGESHWARA LAYOUT, ADUGUDE, BANGALORE-560030.

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KUMAR, S/O LATE RAMAKRISHNAIAH, AGED ABOUT 49 YEARS.

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PADAMAVATHI @ PADMA, W/O LATE RAMAKRISHNAIAH, AGED ABOUT 56 YEARS.

¶92

...RESPONDENTS

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(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶94

SMT. DEEPTHI ALVA, HCGP FOR R-1)

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THIS CRL.P IS FILED U/S 482 CR.PC TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12663/2019, PENDING BEFORE THE IV ADDL. CHIEF METROPOLITAN MAGISTRATE, BANGALORE REGISTERED BY THE SIDDAPURA POLICE STATION CRIME NO. 93/2017 (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS

¶96

¶97

HC-KAR

¶98

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶100

FOR THE OFFENCE P/U/S 406, 420, 120B R/W SEC. 34 OF IPC AND SEC. 76 OF THE CHIT FUND ACT, 1982.

¶101

IN CRL.P NO. 225/2024

¶102

BETWEEN:

¶103

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶104

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶105

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE 560011.

¶106

...PETITIONERS

¶107

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶108

AND:

¶109

STATE OF KARNATAKA, SIDDAPURA P S, JAYANAGAR SUB DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560001.

¶110

S RAJU, S/O LATE SIDDEGOWDA, AGED ABOUT 68 YEARS, R/AT NO.17/2, 1ST MAIN, 4TH CROSS, NEAR AKKAYAMMANA TEMPLE, BYRASANDRA,

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HC-KAR

¶112

¶113

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

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BENGALURU 560030.

¶116

...RESPONDENTS

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(BY SRI. B.N JAGADEESHA, SPP-I A/W

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SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶119

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12550/2019 PENDING BEFORE THE IV A.C.M.M BENGALORE REGISTERED BY THE SIDDAPURA P.S (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS ON 25.02.2017 FOR THE OFFENCE P/U/S 406, 420, 120B R/W 34 OF IPC A/W SEC.76 OF THE CHIT FUND ACT IN CR.NO.41/2017 SIDDAPURA P.S.

¶120

IN CRL.P NO. 230/2024

¶121

BETWEEN:

¶122

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶123

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶124

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE 560 011

¶125

...PETITIONERS

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(BY SRI.- DHANANJAYA N R, ADVOCATE)

¶127

AND:

¶128

STATE OF KARNATAKA, SIDDAPURA P.S, JAYANAGAR SUB DIVSIION,

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HC-KAR

¶130

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶131

¶132

CNR: KAHC010471632026

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BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, KARNATAKA, BENGALURU -560001.

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SRI. SURESH .K, S/O KUPPAN, AGED ABOUT 31 YEARS, RA/T NO.63, 1ST CROSS, 1ST MAIN, NEAR KAVERAMMA TEMPLE, BHIRASANDRA, JAYANAGAR 1ST BLOCK, BENGALURU-560041.

¶135

KUMAR, S/O LATE RAMAKRISHNAIAH, AGED ABOUT 49 YEARS.

¶136

PADAMAVATHI @ PADMA, W/O LATE RAMAKRISHNAIAH, AGED ABOUT 56 YEARS.

¶137

MADHU, S/O LATE RAMAKRISHNAIAH, AGED ABOUT 24 YEARS,

¶138

RESP. NO.3 TO 5 ARE R/AT NO. 16/1, 1ST CROSS, 1ST MAIN, BYRASANDRA, JAYANAGAR 1ST BLOCK BANGALORE CITY.

¶139

...RESPONDENTS

¶140

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶141

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶142

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12637/2019 PENDING BEFORE THE IV A.C.J.M, BENGALURU REGISTERED BY SIDDAPURA P.S. (RESP.NO.1 HEREIN) IN CRIME NO. 94/2017 SIDDAPURA P.S. AGAINST THE PETITIONERS FOR THE OFFENCES P/U/S 406, 420, 120B R/W 34 OF IPC AND SEC.76 OF THE CHIT FUND ACT, 1982.

¶143

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶144

10 -

¶145

HC-KAR

¶146

CNR: KAHC010471632026

¶147

IN CRL.P NO. 254/2024

¶148

BETWEEN:

¶149

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶150

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶151

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE - 560011.

¶152

...PETITIONERS

¶153

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶154

AND:

¶155

STATE OF KARNATAKA, SIDDAPURA P S, JAYANAGAR SUB-DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560 001.

¶156

SRI. K.V. SHAMA RAO, S/O LATE VITTAL RAO, AGED ABOUT 83 YEARS, R/AT RANGADHAMA, NO.26.1, 40TH CROSS, 26TH MAIN, JAYANAGAR, BENGALURU - 560069.

¶157

...RESPONDENTS

¶158

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶159

11 -

¶160

HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶162

CNR: KAHC010471632026

¶163

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶164

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12639/2019 PENDING BEFORE THE IV ADDITIONAL CHIEF JUDICIAL MAGISTRATE, BENGALURU REGISTERED BY THE SIDDAPURA POLICE STATION (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS FOR THE OFFENCES P/U/S.406, 420, 120-B R/W SEC.34 OF IPC, ALONG WITH SEC.76 OF THE CHIT FUND ACT.

¶165

IN CRL.P NO. 258/2024

¶166

BETWEEN:

¶167

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶168

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶169

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUANTH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE 560011.

¶170

...PETITIONERS

¶171

(BY SRI. DHANANJAYA N R.,ADVOCATE)

¶172

AND:

¶173

STATE OF KARANATAKA, SIDDAPURA P S, JAYANAGAR SUB-DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560001.

¶174

12 -

¶175

HC-KAR

¶176

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶177

CNR: KAHC010471632026

¶178

ASHWATHNARAYANA RAO, S/O JANARDHANA RAO, AGED ABOUT 73 YEARS, R/AT NO.90, BLOCK NO.15, TYPE 3, NIMHANS QUARTERS, BYRASANDRA, BENGALURU 560011.

¶179

...RESPONDENTS

¶180

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶181

SMT. DEEPTI ALVA, HCGP FOR R-1)

¶182

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12545/2019 PENDING BEFORE THE IV ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU REGISTERED BY THE SIDDAPURA POLICE STATION (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONER ON 30.01.2017 FOR THE OFFENCE P/U/S.406, 420, 120-B R/W SEC.34 OF IPC, AND SEC.76 OF THE CHIT FUND ACT.

¶183

IN CRL.P NO. 271/2024

¶184

BETWEEN:

¶185

MRS. SHOBHA, W/O SRI PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶186

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶187

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE 560011.

¶188

...PETITIONERS

¶189

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶190

13 -

¶191

HC-KAR

¶192

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶193

CNR: KAHC010471632026

¶194

AND:

¶195

STATE OF KARNATAKA, SIDDAPURA P S., JAYANAGAR SUB DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560001.

¶196

SMT. R. DEVI, W/O RAMASWAMY, AGED ABOUT 64 YEARS, R/AT NO. 498/1, MAHATMA GANDHI LAYOUT, 9TH CROSS, JP NAGAR, 6TH PHASE, BENGALURU-560078.

¶197

...RESPONDENTS

¶198

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶199

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶200

THIS CRL.P IS FILED U/S 482 CR.PC TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12674/2019 PENDING BEFORE THE IV ADDL. CHIEF METROPOLITAN MAGISTRATE, BANGALORE REGISTERED BY THE SIDDAPURA POLICE STATION (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS FOR THE OFFENCES P/U/S 406, 420, 120B R/ SEC. 34 IN CRIME NO.91/2017 OF IPC AND SEC. 76 OF THE CHIT FUND ACT, 1982.

¶201

IN CRL.P NO. 292/2024

¶202

BETWEEN:

¶203

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶204

14 -

¶205

HC-KAR

¶206

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶207

CNR: KAHC010471632026

¶208

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶209

BOTH ARE R/AT: HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE-560011.

¶210

...PETITIONERS

¶211

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶212

AND:

¶213

STATE OF KARNATAKA, SIDDAPURA P S, JAYANAGAR SUB-DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560 001.

¶214

SMT. MANGALAMMA, W/O GURURAJ, AGED ABOUT 45 YEARS, R/AT NO.262, NKALUBANDE, 14TH MAIN, JAYANAGARA 3RD BLOCK EAST, BANGALORE 560011.

¶215

...RESPONDENTS

¶216

(BY SRI. B.N JAGADEESHA, SPP-I A/W

¶217

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶218

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12632/2019 PENDING BEFORE THE IV ADDITIONAL CHIEF METROPOLITAN MAGISTRATE, BENGALURU REGISTERED BY THE SIDDAPURA POLICE STATION (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS FOR THE OFFENCES P/U/S. 420, 506 R/W SEC.34 OF IPC AND SEC.76 OF THE CHIT FUND ACT 1982.

¶219

HC-KAR

¶220

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶221

15 -

¶222

CNR: KAHC010471632026

¶223

IN CRL.P NO. 307/2024

¶224

BETWEEN:

¶225

MRS. SHOBHA, W/O SRI. PADMANABHA @ RAVI, AGED ABOUT 54 YEARS.

¶226

SRI. PADMANABHA @ RAVI, S/O LATE K.T. KENCHAIAH, AGED ABOUT 57 YEARS.

¶227

BOTH ARE R/AT HOUSE NO.149/3, 2ND MAIN, MANJUNATH COMPLEX, BYRASANDRA MAIN ROAD, 1ST BLOCK EAST, JAYANAGAR, BANGALORE-560011.

¶228

...PETITIONERS

¶229

(BY SRI. DHANANJAYA N R, ADVOCATE)

¶230

AND:

¶231

STATE OF KARNATAKA, SIDDAPURA P.S., JAYANAGAR SUB-DIVISION, BANGALORE, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560 001.

¶232

BEENA SREEKANTH, S/O SREEKANTH, AGED ABOUT 43 YEARS, R/AT NO.2, 3RD CROSS, 4TH MAIN, BYRASANDRA, BENGALURU-560011.

¶233

...RESPONDENTS

¶234

(BY SRI B.N JAGADEESHA, SPP-I A/W

¶235

16 - NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶236

HC-KAR

¶237

CNR: KAHC010471632026

¶238

SMT. DEEPTHI ALVA, HCGP FOR R-1)

¶239

THIS CRL.P IS FILED U/S.482 CR.P.C TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.12547/2019 PENDING BEFORE THE IV ADDL.C.M.M., BENGALURU, REGISTERED BY SIDDAPURA POLICE STATION IN CR.NO.39/2017 (RESPONDENT NO.1 HEREIN) AGAINST THE PETITIONERS ON 18.02.2017 FOR THE OFFENCE P/U/S 406, 420, 120B R/W 34 OF IPC A/W SEC. 76 OF THE CHIT FUND ACT.

¶240

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

¶241

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

¶242

ORAL ORDER

¶243

In W.P.No.21512/2026, the petitioners are before this

¶244

Court seeking the following prayers:

¶245

"a. Issue a Writ of Certiorari Quash the complaint filed by Respondent No.2 before Respondent No.1 police dated 24.04.2016. vide Annexure-A in so far as the Petitioner is concerned and;

¶246

b. Issue a Writ of Certiorari to quash the First Information Report, filed by the Respondent No. 1 in Cr No. 94/2016 against the petitioners by the 1st Respondent Police dated 24.04.2016 for offences punishable u/s. 420, 120B, and 34 of IPC 1860 pending on the file of 2nd Additional Chief Judicial Magistrate (ACJM), Bangalore vide Annexure-B in so far as the Petitioner concerns and;

¶247

c. Issue a Writ of certiorari to quash the Chargesheet filed by the Respondent No.1 police in for the offences punishable u/s. 406, 420, 120(B), R/w 34 of IPC and section 76 of Chit Fund Act 1982, pending on the file of

¶248

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¶249

HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶251

CNR: KAHC010471632026

¶252

2nd Additional Chief Judicial Magistrate (CJM), Bangalore Vide Annexure C in so far as the Petitioners concerns and;

¶253

d. Issue any other order or direction as this Hon'ble Court deems fit and proper under the facts and circumstances of this case to meet the ends of Justice."

¶254

2. In Crl.P.No.170/2024, the petitioners are before

¶255

this Court seeking the following prayers:

¶256

"(1) Quash the in entire proceedings C.C.No.12672/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore registered by the Siddapura Police Station (Resp.No.1 herein) against the Petitioners on 20.04.2017 for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code. Along with section 76 of the Chit Fund Act.

¶257

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶258

3. In Crl.P.No.175/2024, the petitioners are before

¶259

this Court seeking the following prayers:

¶260

"(i) Quash the entire proceedings C.C.No.12552/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station (Resp.No.1 herein) against the Petitioners on 01.03.2017 for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code and Sec. 76 of Chit Fund Act 1982.

¶261

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HC-KAR

¶263

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶264

CNR: KAHC010471632026

¶265

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶266

4. In Crl.P.No.213/2024, the petitioners are before

¶267

this Court seeking the following prayers:

¶268

"(i) Quash the entire proceedings in C.C.No.12663/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station Crime No.93/2017 (Resp. No.1 herein) against the Petitioners for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code and Section 76 of the Chit Fund Act, 1982.

¶269

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶270

5. In Crl.P.No.225/2024, the petitioners are before

¶271

this Court seeking the following prayers:

¶272

"(i) Quash the entire proceedings in C.C.No.12550/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station (Resp.No.1 herein) against the Petitioners on 25.02.2017 for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code. Along with section 76 of the Chit Fund Act in Crime No 41/2017 Siddapur P.S.

¶273

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶274

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶278

6. In Crl.P.No.230/2024, the petitioners are before

¶279

this Court seeking the following prayers:

¶280

"(i) Quash the entire proceedings in C.C.No.12637/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore registered by the Siddapura Police Station (Resp. No.1 herein) in Cr.No.94/2017 Siddapura P.S. against the Petitioners for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code and Section 76 of the Chit Fund Act, 1982.

¶281

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶282

7. In Crl.P.No.254/2024, the petitioners are before

¶283

this Court seeking the following prayers:

¶284

"(i) Quash the entire proceedings in C.C.No.12639/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore registered by the Siddapura Police Station (Resp. No.1 herein) against the Petitioners for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code along with section 76 of the Chit Fund Act.

¶285

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶286

8. In Crl.P.No.258/2024, the petitioners are before this Court seeking the following prayers:

¶287

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶291

(1) Quash the entire proceedings in C.C.No.12545/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station (Resp. No.1 herein) against the Petitioners on 30.01.2017 for the offences punishable u/sec.406, 420, 120B r/w section 34 of the Indian Penal Code and u/sec. 76 of Chit fund act.

¶292

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice".

¶293

9. In Crl.P.No.271/2024, the petitioners are before

¶294

this Court seeking the following prayers:

¶295

(i) Quash the entire proceedings in C.C.No.12674/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station (Resp. No.1 herein) against the Petitioners for the offences punishable u/sec. 406, 420, 120B r/w section 34 in Crime No. 91/2017 of the Indian Penal Code and Section 76 of the Chit Fund Act, 1982.

¶296

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶297

10. In Crl.P.No.292/2024, the petitioners are before

¶298

this Court seeking the following prayers:

¶299

(i) Quash the entire proceedings in C.C.No.12632/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station (Resp. No.1 herein) against the Petitioners for the offences punishable u/sec. 420, 506 r/w section 34 of the

¶300

21 - NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶301

HC-KAR

¶302

CNR: KAHC010471632026

¶303

Indian Penal Code and Section 76 of the Chit Fund Act, 1982.

¶304

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶305

In Crl.P.No.307/2024, the petitioners are before

¶306

this Court seeking the following prayers:

¶307

(i) Quash the entire proceedings in C.C.No.12547/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore registered by the Siddapura Police Station in Crime No.39/2017 (Resp. No.1 herein) against the Petitioners for the offences punishable u/sec. 406, 420, 120B r/w section 34 of the Indian Penal Code. Along with Section 76 of the Chit Fund Act.

¶308

(ii) Grant such other relief/s as this Hon'ble Court be pleased to grant in the facts and circumstances of the case, in the interest of justice."

¶309

In W.P.No.21512/2026, heard Sri.Shrirama Adiga, learned counsel appearing for the petitioners. In all the criminal petitions, heard Sri.Dhananjaya N.R., learned counsel appearing for the petitioners. In all the petitions, heard Sri.B.N.Jagadeesha, learned SPP-I along with Smt.Deepthi Alva, learned HCGP appearing for respondent No.1 and have perused the material on record.

¶310

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶313

CNR: KAHC010471632026

¶314

Learned counsel appearing for the petitioners would submit that the issue in the lis stands covered by the judgment rendered by this Court in Crl.P.No.6387/2026 disposed on 07.07.2026, wherein it has held as follows:

¶315

"3. Learned counsel for petitioners relying on the judgment of this Court in Crl.P.No.1836/2022, disposed on 15.03.2022, would submit that the issue in the lis is also identical to the one as afore-quoted and submits that the Chit Fund Company is not made as a party accused. Therefore, seeks that the same relief may be granted to the petitioners, as is granted in the afore-quoted petition.

¶316

This Court in Crl.P.No.1836/2022, disposed on 15.03.2022, has held as follows:

¶317

“Identical criminal petitions in Crl.P.Nos.5230/2018 and 6526/2018 were allowed by this Court on 14.09.2021 reserving liberty to proceed in accordance with law. This Court has held as follows:

¶318

“6. The common ground inter alia taken up in these proceedings are that the Company which ran the chit fund is not made a party to these proceedings and unless, the Company is a party, the petition would not be maintainable.

¶319

The issue with regard to whether the proceedings could be initiated against the petitioner alone who is an employee of the Company and not the Company, is no longer res integra, as the issue stands covered by the judgment of the Apex Court in the case of ANEETA HADA v. GODFATHER TRAVELS AND TOURS PRIVATE LIMITED¹ wherein the Hon’ble Apex Court has held as follows:-

¶320

“39. The word “deemed” used in Section 141 of the Act applies to the company and the persons responsible for the acts of the company. It crystallizes the corporate criminal liability and vicarious liability of a person who is in charge of

¶321

1 (2012) 5 SCC 661

¶322

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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CNR: KAHC010471632026

¶326

the company. What averments should be required to make a person vicariously liable has been dealt with in S.M.S. Pharmaceuticals Ltd. [(2005) 8 SCC 89 : 2005 SCC (Cri) 1975] In the said case, it has been opined that the criminal liability on account of dishonour of cheque primarily falls on the drawee (sic drawer) company and is extended to the officers of the company and as there is a specific provision extending the liability to the officers, the conditions incorporated in Section 141 are to be satisfied.

¶327

50. However, it is noticeable that the Bench thereafter referred to the dictum in Sheoratan Agarwal [(1984) 4 SCC 352: 1984 SCC (Cri) 620] and eventually held as follows: (Anil Hada case [(2000) 1 SCC 1: 2001 SCC (Cri) 174] , SCC p. 10, para 21)

¶328

“21. We, therefore, hold that even if the prosecution proceedings against the company were not taken or could not be continued, it is no bar for proceeding against the other persons falling within the purview of sub-sections (1) and (2) of Section 141 of the Act.”

¶329

In the light of the aforesaid judgment of the Apex Court, the proceedings without making the Company a party was not maintainable.

¶330

The said judgment is followed in plethora of orders passed by the Co-ordinate benches of this Court, one of which is cited herein is, in the case of MR. ARVIND MEDIRATTA v. STATE OF KARNATAKA² - wherein this Court has held as follows:

¶331

“8. I have given my careful consideration to the submissions of the learned senior counsel and the learned High Court Government Pleader.

¶332

9. In the light of the submissions of the parties, the point that arises for consideration of this court is;

¶333

2 Crl.R.P. No.344/2017 and connected cases dd. 16-03-2017

¶334

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HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶337

CNR: KAHC010471632026

¶338

Whether the impugned orders passed by the learned Magistrate taking cognizance of the offences mentioned in the complaints filed by the Labour Department against the petitioner as an individual without making the company, in which he is a member on Board, are maintainable?

¶339

10. The Hon’ble Supreme court in the case of ANEETA HADA (supra) while considering a case arising out of Section 138 of the Negotiable Instruments Act, 1881, has held as follows:

¶340

“Applying the doctrine of strict construction, we are of the considered opinion that commission of offence by the company is an express condition precedent to attract the vicarious liability of others. Thus, the words “as well as the company” appearing in the section make it absolutely unmistakably clear that when the company can be prosecuted, then only the persons mentioned in the other categories could be vicariously liable for the offence subject to the averments in the petition and proof thereof. One cannot be oblivious of the fact that the company is a juristic person and it has its own responsibility. If a finding is recorded against it, it would create a concavity in its reputation. There can be situations when the corporate reputation is affected when a Director is indicted”.

¶341

The said authority has been following by this Court in the case of SANJAY JAIN (supra).

¶342

11. A perusal of the complaints show that the petitioner is arraigned as an accused in his individual capacity, although his position as a Director in the company is mentioned. It is one thing to say that the company is the accused represented by its Director and it is another to say that an individual being described as a Director in a particular company satisfies the requirement of law. An individual can be a member on the Board of several companies. Unless a company, which is a juristic person, is arraigned as a party, the Labour Department could not have initiated prosecution only against an individual. In the circumstances, respectfully following the Authority in the case of ANEETA HADA (supra), in my view, the complaints filed by the Senior Labour Inspector qua an individual without the Corporate entity being made as a member, were not maintainable.

¶343

HC-KAR

¶344

NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶345

25 -

¶346

CNR: KAHC010471632026

¶347

In the circumstances, these petitions merit consideration and are accordingly allowed.”

¶348

In the light of the judgments as noticed hereinabove, the complaint itself was not maintainable without the corporate entity being made as a party but having brought only the Board of Directors or the officers of the Company as accused.”

¶349

The present petition also raised a similar issue where the proceedings are instituted against the petitioners, who are Directors of the Company (accused Nos.1 and 2) without the proceedings are instituted without making the Company a party.

¶350

The aforesaid criminal petitions were allowed following the judgment of the Apex Court in the case of ANEETA HADA v. GODFATHER TRAVELS AND TOURS PRIVATE LIMITED3.

¶351

Therefore, the criminal petition is allowed in the same terms as is directed in Criminal Petition Nos.5230/2018 and 6526/2018 disposed on 14.09.2021.”

¶352

In the light of the issue being answered in the aforequoted judgment of this Court, the subject petition deserves to succeed, as the proceedings are instituted without making the Company as a party.

¶353

For the aforesaid reasons, the following:

¶354

ORDER

¶355

(i) The Criminal Petition is allowed.

¶356

(ii) The proceedings in C.C.No.9294/2022, pending before the 32^nd Additional Chief Judicial Magistrate, Bengaluru and all further proceedings taken thereto, stand quashed.

¶357

(iii) The respondent - State shall be at liberty to take appropriate action in accordance with law.

¶358

Ordered accordingly."

¶359

3 (2012) 5 SCC 661

¶360

26 - NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶361

HC-KAR

¶362

CNR: KAHC010471632026

¶363

In the light of the order passed by this Court (supra) and for the reasons aforementioned, the following:

¶364

ORDER

¶365

(i) The Petitions are disposed.

¶366

(ii) In W.P.No.21512/2026, complaint filed by Respondent No.2 before Respondent No.1-police dated 24.04.2016; First Information Report filed by the Respondent No.1 in Crime No.94/2016 by the 1st Respondent Police dated 24.04.2016; Chargesheet filed by the Respondent No.1 police, pending on the file of 2nd Additional Chief Judicial Magistrate (ACJM), Bangalore, stands quashed qua the petitioners.

¶367

(iii) In Crl.P.No.170/2024, entire proceedings in C.C.No.12672/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore, stands quashed qua the petitioners.

¶368

(iv) In Crl.P.No.175/2024, entire proceedings in C.C.No.12552/2019 pending before the IV Addl.

¶369

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¶370

HC-KAR

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NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶372

CNR: KAHC010471632026

¶373

Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶374

(v) In Crl.P.No.213/2024, entire proceedings in C.C.No.12663/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶375

(vi) In Crl.P.No.225/2024, entire proceedings in C.C.No.12550/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶376

(vii) In Crl.P.No.230/2024, entire proceedings in C.C.No.12637/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore, stands quashed qua the petitioners.

¶377

(viii) In Crl.P.No.254/2024, entire proceedings in C.C.No.12639/2019 pending before the IV Addl. Chief Judicial Magistrate, Bangalore, stands quashed qua the petitioners.

¶378

28 - NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

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HC-KAR

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CNR: KAHC010471632026

¶381

(ix) In Crl.P.No.258/2024, entire proceedings in C.C.No.12545/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶382

(x) In Crl.P.No.271/2024, entire proceedings in C.C.No.12674/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶383

(xi) In Crl.P.No.292/2024, entire proceedings in C.C.No.12632/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶384

(xii) In Crl.P.No.307/2024, entire proceedings in C.C.No.12547/2019 pending before the IV Addl. Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioners.

¶385

(xiii) The respondent-State/Investigating Officer is at liberty to implead the Company as a party

¶386

29 - HC-KAR NC: 2026:KHC:45138 WP No. 21512 of 2026 C/W CRL.P No. 170 of 2024 CRL.P No. 175 of 2024 AND 8 OTHERS

¶387

CNR: KAHC010471632026

¶388

respondent to these proceedings in further

¶389

investigation, as the case would be.

¶390

Sd/(M.NAGAPRASANNA) JUDGE

¶391

CBC

¶392

List No.: 2 Sl No.: 38

Mrs Shobha v. State of Karanataka

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Mrs Shobha v. State of Karanataka

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