Allowed

M/S Sri Nandi Builders India Pvt. Ltd. v. Army Housing Co. Operative Society Ltd.

Karnataka HC12 Feb 2026CRL.RP/108/2022

Case brief

AI extract

What is this about?

Accused company convicted for cheque dishonour settled the dispute before Lok-Adalat by agreeing to pay principal with 16% interest. After paying the balance amount by demand draft and post-dated cheque, the court set aside the conviction and acquitted the accused, reserving liberty to revive if the cheque bounces.

What did the court decide?

Conviction under S.138 NI Act set aside; petitioner acquitted; bail bonds cancelled; liberty to respondent to seek recall if the post-dated cheque is dishonoured.

M/S Sri Nandi Builders India Pvt. Ltd. Vs Army Housing… — Cheque Dishonour | Karnataka HC (2026)

¶1

NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶2

¶3

HC-KAR

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶5

DATED THIS THE 12^TH DAY OF FEBRUARY, 2026

¶6

BEFORE

¶7

THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 108 OF 2022

¶8

BETWEEN:

¶9

M/S SRI NANDI BUILDERS INDIA PVT LTD, NO.308, 3RD FLOOR, RAHEJA CHAMBERS, NO.12, MUSEUM ROAD, BENGALURU - 560 001. (REP BY ITS MANAGING DIRECTOR, MR BASAVARAJ M B) …PETITIONER (BY SRI.CHANDAN.B.K, ADVOCATE FOR SRI.BHADRAVADI SIDDESWARA, ADVOCATE)

¶10

AND:

¶11

Digitally signed by KAVYA R ARMY HOUSING CO OPERATIVE SOCIETY LTD Location: NO.179, 9TH CROSS, 5TH MAIN, High court of INDIRANAGAR IST STAGE, Karnataka BENGALURU - 560 038. (REP BY ITS PRESIDENT, MR N LAKHAMANA, SPECIAL OFFICER, ARMY HOUSING CO-OPERATIVE SOCIETY LTD) …RESPONDENT

¶12

(BY SRI.K.G.DHRUV UTHAPPA, ADVOCATE)

¶13

2 - NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶14

HC-KAR

¶15

THIS CRL.RP IS FILED U/S.397 R/W 401 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONBLE COURT MAY BE PLEASED TO SET ASIDE THE JUDGMENT OF CONVICTION PASSED IN C.C.NO.26028/2013, DATED 05.07.2019 BY THE LVII A.C.M.M, MAYO HALL UNIT, BENGALURU AND THE DISMISSAL OF THE APPEAL FOR THE DELAY IN FILING THE APPEAL PASSED IN CRL.A.NO.25047/2019, DATED 11.10.2021 BY THE 74TH ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, MAYO HALL UNIT, BENGALURU AND ACQUIT HIM OF THE ALL THE CHARGES OR IN THE ALTERNATIVE REMAND THE MATTER FOR THE FIRST APPELLATE COURT TO HEAR HIS APPEAL AFRESH ON MERITS OF THE CASE.

¶16

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY

¶17

ORAL ORDER

¶18

This Criminal Revision petition is filed by the accused

¶19

under Section 397 read with Section 401 of Cr.PC with a prayer to set aside the judgment and order of conviction and sentence passed in C.C.No.26028/2013 dated 05.07.2017 by the Court of LVII Additional Chief Metropolitan Magistrate, Mayohall Unit, Bengaluru and the judgment and order passed in Crl.A.No.25047/2019 dated 11.10.2021 by the Court of 74^th Additional City Civil and Sessions Judge, Mayohall Unit, Bengaluru.

¶20

3 - NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶21

HC-KAR

¶22

Heard the learned counsel for the parties.

¶23

Learned counsel for the petitioner submits that

¶24

the matter was referred to Lok-Adalat by this Court and before the Lok-Adalat, the matter was settled between the parties on 13.12.2025 and in terms of the settlement arrived between the parties, the petitioner was required to pay an amount of Rs.51,00,000/- (Rupees Fifty one Lakhs only) with interest at the rate of 16% per annum. He submits that in compliance of the said order petitioner had paid a sum of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) to the respondent through a demand draft bearing No.006490, drawn on Axis Bank, Ganganagar Branch and the balance amount of Rs.29,12,200/- (Rupees Twenty Nine Lakhs Twelve Thousand Two Hundred only) has been today paid by the petitioner to the respondent under a post-dated cheque dated 05.03.2026 drawn on RBL Bank bearing Cheque No.000141 in favour of the respondent society.

¶25

4 - NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶26

HC-KAR

¶27

Learned counsel for the respondent admits receipt of sum of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) under a demand draft as aforesaid and he also has admitted receipt of the post-dated cheque as aforesaid. He submits that this Criminal revision petition may be disposed of in terms of the settlement, reserving liberty to the respondent to file necessary application to revive this order, in the event the post-dated cheque issued gets dishonoured.

¶28

The said submission made by both parties is placed on record.

¶29

Before the Lok-Adalat the matter was settled on

¶30

13.12.2025 and the following order was passed:

¶31

"The cheque amount involved is Rs.51,00,000/-. The trial Court awarded interest of Rs.56,61,000/calculated at the rate of 18% per annum for a period of 74 months, commencing from 30.04.2011.

¶32

The petitioner has agreed to pay the entire cheque amount with interest calculated at the rate of 16% per annum and the same is agreed by the

¶33

¶34

NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶35

HC-KAR

¶36

respondent-Society. The interest at 16% p.a. would be Rs.50,32,000/-. It is stated that a sum of Rs.20,00,000/- has already been paid to the respondent-Society and a sum of Rs.26,91,250/- is deposited before the trial Court.

¶37

The respondent-Society has agreed to receive the cheque amount of Rs.51,00,000/- + interest at the rate of 16% p.a. The petitioner sought time till the end of January 2026 to pay the entire balance amount in two instalments. It is stated that the first instalment shall be paid on or before 05.01.2026 and the remaining amount on or before 30.01.2026. It is made clear that the agreed Interest at the rate of 16% p.a. is for a period of 74 months commencing from 30.04.2011.

¶38

The entire amount shall be deposited before this Court. The parties have suggested that the present petition be closed in terms of the above agreed settlement upon deposit of the entire amount by the petitioner. The same is agreed by the petitioner and the learned counsel appearing for the petitioner.

¶39

For compliance of the above agreed terms, list this matter before the Court on 02.02.2026.

¶40

The petitioner has no objection to the release of the sum of Rs.26,91,250/- lying in deposit before the trial Court. Accordingly, the trial Court is directed to

¶41

6 - NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶42

HC-KAR

¶43

release a sum of Rs.26,91,250/- in favour of the respondent-Society through electronic transfer, after due verification.

¶44

In terms of the aforesaid order, the petitioner has now paid a sum of Rs.25,00,000/- (Rupees Twenty Five Thousand only) to the respondent, through a demand draft as aforesaid and the balance amount of Rs.29,12,200/(Rupees Twenty Nine Lakhs Twelve Thousand Two Hundred only) has been paid through a post-dated cheque as aforesaid.

¶45

Since the petitioner has paid the amount as agreed before the Lok-Adalat, this Criminal revision petition is required to be disposed of in terms of the settlement arrived between the parties and the impugned judgment and order of conviction and sentence passed by the court below against the petitioner needs to be set aside. Accordingly the following:

¶46

ORDER

¶47

i. The Criminal revision petition is allowed .

¶48

¶49

NC: 2026:KHC:8869 CRL.RP No. 108 of 2022

¶50

HC-KAR

¶51

ii. The impugned judgment and order of conviction and sentence passed against the petitioner by the courts below are set aside and the petitioner is acquitted of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. His bail bonds, if any, stands cancelled.

¶52

iii. Liberty is reserved to the respondent/complainant to file necessary application to recall this order, in the event the aforesaid post-dated cheque issued for a sum of Rs.29,12,200/- (Rupees Twenty Nine Lakhs Twelve Thousand Two Hundred only) is dishonoured by the drawee Bank.

¶53

Sd/(S VISHWAJITH SHETTY) JUDGE

¶54

KVR

¶55

List No.: 1 Sl No.: 27

M/S Sri Nandi Builders India Pvt. Ltd. v. Army Housing Co. Operative Society Ltd.

Case brief

What is this about?

What did the court decide?

M/S Sri Nandi Builders India Pvt. Ltd. v. Army Housing Co. Operative Society Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State of Karnataka Vs Rakesh S K @ Rakesh Gowda

Smt Vasanthi Shenoy Vs Sri Damodar Shenoy

Renil @ Rinil C Vs State of Karnataka

Sanjeeva Ganiga Vs Sri P Lingaiah

H P Prakash Vs State of Karnataka

Smt. Elizabeth P.M Vs Sri. S. Satheesha