Rekha Shankar Vs State of Karnataka — Cheating and Forgery | Karnataka HC (2026)

Rekha Shankar Vs State of Karnataka — Cheating and Forgery | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Proceedings against the petitioner (accused No.4) quashed subject to payment as undertaken in the compromise; I.A.No.1/2026 seeking compounding under Section 320 Cr.P.C. allowed; complainant retains liberty to proceed if scheduled payments are defaulted.

Issue for consideration

Whether the proceedings/charge sheet in C.C. No. 22768/2022 against the petitioner (accused No.4) for offences punishable under Sections 406 and 420 IPC should be quashed, and whether the offences may be compounded under Section 320 Cr.P.C. in view of the compromise reached between the parties.

Ratio / Principle

Since the dispute is inter se between private parties and not against the State, and having taken note of the principles laid down in the Apex Court judgment referred supra, it is appropriate to quash the proceedings against the petitioner as sought.

Key takeaways

I.A.No.1/2026 (application under Section 320 Cr.P.C. to compound the offences in terms of the joint memo) is allowed, and the proceedings initiated against the petitioner are quashed subject to payment as undertaken in the compromise.ratio¶35
The quashing is conditional on payment: if payment is not made as agreed in the compromise, the respondent/complainant is given liberty to proceed against the petitioner in accordance with law.ratio¶35

Detailed headnote1 paragraphs

Criminal Petition (CRL.P No. 784 of 2025) filed under Section 482 Cr.P.C. by Rekha Shankar (accused No.4) seeking quashing of the charge sheet in C.C. No. 22768/2022 filed by Channammanakere Achukattu Police for alleged offences punishable under Sections 406, 409, 420 r/w 34 IPC. By the time of orders, the matter had been compromised: a joint memo set out payments of Rs.1,00,000/- (already paid) and instalments of Rs.3,00,000/- each on 06.03.2026, 06.04.2026 and 02.05.2026, supported by a resolution of SMR Embassy Apartment Owners' Welfare Association and an acknowledgement of receipt. An application (I.A.No.1/2026) under Section 320 Cr.P.C. to compound the offences was filed with affidavit. Taking note of the Apex Court judgment in GAIN SINGH vs STATE OF PUNJAB AND ANOTHER, (2012) 10 SCC 303 (private-party disputes can be compounded), and noting the dispute was inter se private parties and not against the State, the Court allowed I.A.No.1/2026, quashed the proceedings against the petitioner subject to the agreed payments, gave the respondent/complainant liberty to proceed in accordance with law if payment defaulted, and disposed of the petition. Bench: H.P. SANDESH, J.; dated 13.02.2026.

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HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 13^TH DAY OF FEBRUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE H.P.SANDESH

CRIMINAL PETITION NO.784 OF 2025

BETWEEN:

REKHA SHANKAR AGED ABOUT 54 YEARS, W/O RAVI SHANKAR, NO.84/6, 8^TH CROSS, WILSON GARDEN, BENGALURU-560027

…PETITIONER

(BY SRI VINAYA KEERTHY M, ADVOCATE)

Digitally signed by DEVIKA M Location: HIGH COURT OF KARNATAKA

AND:

STATE OF KARNATAKA BY CHANNAMMANAKERE ACHUKATTU POLICE STATION, REP. BY STATE PUBLIC PROSECUTOR, HIGH COURT, BENGALURU-560001

T VITTAL KUMAR AGED ABOUT 48 YEARS, S/O PARVATHA RAO T, SECRETARY, SMR EMBASSY APARTMENT

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HC-KAR

OWNERS WELFARE ASSOCIATION, FLAT NO.307, 3^RD CROSS, RAMA RAO LAYOUT, KATRIGUPPE, BANASHANKARI III STAGE, BENGALURU- 560 085

…RESPONDENTS

(BY SMT. RASHMI PATEL, HGCP FOR R1; SRI OMKARESH, ADVOCATE FOR R2)

THIS CRL.P IS FILED U/S 482 CR.PC PRAYING TO QUASH THE CHARGE SHEET IN C.C. NO. 22768/2022 FILED BY THE FIRST RESPONDENT - CHANNAMMANAKERE ACHUKATTU POLICE AGAINST THE PETITIONER HEREIN FOR THE ALLEGED OFFENCES PUNISHABLE UNDER SECTIONS 406, 409, 420 R/W 34 IPC AND ETC.

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

CORAM: HON'BLE MR. JUSTICE H.P.SANDESH

ORAL ORDER

This petition is filed by accused No.4 praying this Court to quash the proceedings initiated against her for the offences punishable under Sections 406 and 420 of IPC.

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HC-KAR

Earlier, this Court heard the matter in part.

Now, the matter is compromised between the parties. To that effect, the parties have filed the joint memo stating that matter is compromised between them and payment will be made in terms of the compromise i.e., Rs.1,00,000/- (the same is already paid) and dates for payment is also fixed as on 06.03.2026 - Rs.3,00,000/-, on 06.04.2026 – Rs.3,00,000/- and on 02.05.2026 – Rs.3,00,000/-. The parties have also produced the resolution passed by SMR Embassy Apartment Owners' Welfare Association and also acknowledgement for having received the amount of Rs.1,00,000/-.

I.A.No.1/2026 is also filed under Section 320 of Cr.P.C. praying this Court to permit to compound the offences in terms of the joint memo and compromise and the same is supported by an affidavit.

Considered the application filed under Section

320 of Cr.P.C. and also the joint memo. The dispute is

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HC-KAR

inter se between the private parties and not against the State. In the judgment of Apex Court reported in (2012) 10 SCC 303 in the case of GAIN SINGH vs STATE OF PUNJAB AND ANOTHER it is held that if dispute is between the private parties, the same can be compounded. Having taken note of the principles laid down in the judgment referred supra and the dispute is between the private parties, it is appropriate to quash the proceedings as sought. Accordingly, I.A.No.1/2026 is allowed and the proceedings initiated against the petitioner is quashed subject to payment as undertaken in the compromise. If payment is not made as agreed, the respondent/complainant is given liberty to proceed against the petitioner in accordance with law. Accordingly, the petition is disposed of.

Sd/- (H.P.SANDESH) JUDGE

SN