Sri N. Gagan Deep Vs State of Karnataka

SRI CHETHNA M. N, SON OF SRI MUNINARAYANASWAMY, AGED ABOUT 33 YEARS, R/AT NO. 411, WARD NO. 28, GNV ROAD, NEAR CHIKKABAJANE MANE, CHIK BALLAPUR, CHIKKABALLAPUR, KARNATAKA 562 101.

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SRI K. S. THEJAS,

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SON OF SRI SUDARSHAN K. S., AGED ABOUT 27 YEARS, R/AT NO. 49, BEHIND KSRTC DEPO GHN LAYOUT, CHIKKABALLAPUR, KARNATAKA 562 101.

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…PETITIONERS

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(BY SRI SURESH R, ADVOCATE)

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NC: 2026:KHC:31316 WP No. 18976 of 2026

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HC-KAR

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AND:

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STATE OF KARNATAKA, BY DEVANAHALLI POLICE STATION, DEVANAHALLI, BENGALURU RURAL DISTRICT, REPRESENTED BY SPP, HIGH COURT OF KARNATAKA, BENGALURU 560 001.

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MYSORE MERCANTILE COMPANY LIMITED, A COMPANY INCORPORATED UNDER THE INDIAN COMPANIES ACT, HAVING CIN: U51229KA2000PLC026500, HAVING ITS OFFICE AT “MYSORE MERCANTILE HOUSE”, NO. 46, III AND IV FLOOR, 36TH CROSS, 4TH ‘T’ BLOCK, JAYANAGAR, BENGALURU - 560 041, REP. BY ITS AUTHORISED SIGNATORY.

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…RESPONDENTS

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(BY SMT. WAHEEDA M.M, HCGP FOR R-1; SRI AJITH ANAND SHETTY, ADVOCATE FOR R-2)

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THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF THE BNSS, 2023 PRAYING TO QUASH THE FIR AND COMPLAINT IN CRIME NO. 68/2026 REGISTERED BY DEVANAHALLI POLICE STATION, BENGALURU RURAL DISTRICT, FOR THE OFFENCES PUNISHABLE UNDER SECTIONS 318(4), 319(2), 316(2), 338, 341(1) AND 336(3) READ WITH SECTION 3(5) OF THE BHARATIYA NYAYA SANHITA, 2023, PENDING ON THE FILE OF THE HON’BLE PRL. CIVIL JUDGE AND JMFC, DEVANAHALLI, AS AGAINST THE PETITIONERS / ACCUSED NOS. 1 TO 3, PRODUCED AT ANNEXURES A AND B RESPECTIVELY AND ETC.

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NC: 2026:KHC:31316 WP No. 18976 of 2026

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HC-KAR

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

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CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

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ORAL ORDER

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Petitioners – accused Nos.1 to 3 are before this Court calling in question registration of a crime in Crime No.68/2026, pending before the Principal Civil Judge and JMFC, Devanahalli, for the offences under Sections 318(4), 319(2), 316(2), 338, 341(1) and 336(3) r/w. 3(5) of the BNS, 2023.

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Learned counsel for the petitioners and respondent No.2 in unison would submit that during the subsistence of these proceedings, the parties to the lis have entered into settlement amongst themselves by drawing up certain terms and conditions. The parties submit a joint memo before this Court to that effect.

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3. The joint memo reads as follows:

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“That the present criminal petition has been filed by the Petitioner, invoking the inherent jurisdiction of this Hon'ble Court with a prayer to quash the First Information Report dated 30th March, 2026 in Crime No.0068 of 2026, by the Devanahalli Police, Bangalore, inter-alia alleging offences punishable under Sections 316(2), 318(4), 319(2), 336(3), 338, 341(1) r/w 3(5) of the Bharatiya Nyaya Sanhitha 2023,

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NC: 2026:KHC:31316 WP No. 18976 of 2026

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HC-KAR

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during course of their investigation conducted over a complaint dated 30th March, 2026 filed by the Respondent herein.

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The Petitioner acknowledges the fact that he owes the Respondent/Complainant, a sum of Rs.6,30,00,000/- (Rupees Six Crores Thirty Lakhs Only) that was received by him from the Respondent/ Complainant during the period September, 2025 to January, 2026, based on his assurance of execution of certain works for the Complainant/ Respondent. The Petitioner further acknowledges that he has failed to complete the said works undertaken by him and as such, he owes such moneys to the Complainant/ Respondent. The Petitioner has now offered to refund the aforesaid sums, plus the costs incurred by the Respondent/ Complainant in this legal pursuit, in multiple installments as agreed in the entailing paragraphs.

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The Respondent/ Complainant, without prejudice to its contentions raised in its complaint referred supra and driven by its intention to secure its interests within the shortest possible duration, has accepted such offer made by the Petitioner herein, subject to the condition that the Petitioner repays the entire outstanding sum within a period of one year from the date of this joint memo. The Petitioner/ Accused further acknowledges that the 01st Respondent Police have already recovered a sum of Rs.2,67,00,000/- (Rupees Two Crores Sixty-Seven Lakhs Only) from the bank accounts held by him and that he has no objections for the same to be released in favor of the Respondent/ Complainant.

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The parties herein would jointly pray that this Hon'ble Court be pleased to direct the Hon'ble Principal Civil Judge (Jr.Dvn) & J.M.F.C. Devanahalli, to allow the application dated 16th May, 2026, filed by the Respondent/ Complainant herein and thereby release the said sum of Rs. 2,67,00,000/- (Rupees Two Crores Sixty Seven Lakhs Only) in favor of the Respondent/ Complainant.

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As such, the Petitioner/ Accused owes the balance sum of Rs. 3,63,00,000/- (Rupees Three Crores Sixty-Three Lakhs Only) to the Respondent/Complainant.

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That in pursuance to such understanding, the Petitioner/ Accused herein undertakes to repay the balance sum of

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NC: 2026:KHC:31316 WP No. 18976 of 2026

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HC-KAR

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Rs.3,63,00,000/- (Rupees Three Crores Sixty-Three Lakhs Only) in the following manner;

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(i) Rs.33,00,000/- (Rupees Thirty-Three Lakhs Only) to be paid before filing of this joint memo;

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(ii) Rs.2,00,00,000/- (Rupees Two Crores Only) within a period of seven days from the date of this Joint memo;

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(iii) Rs.1,30,00,000/- (Rupees One Crore Thirty Lakhs) within a period of one year from the date of this Joint Memo and in lieu of such payment, has issued the following un-dated cheques drawn on Bangalore District Central Co-operative Bank Limited, Devanahalli Branch, with an understanding that the same are to be termed as inchoate instruments and the Respondent/ Complainant would be at liberty to fill in the dates as and when the installment falls due;

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Cheques issued by the Petitioner/ Accused;

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Sl.	Cheque number	Value
No.
1	292451	Rs.13,00,000/-
2	292452	Rs.13,00,000/-
3	292453	Rs.13,00,000/-
4	292454	Rs.13,00,000/
5	292455	Rs.13,00,000/
6	292456	Rs.13,00,000/
7	292457	Rs.13,00,000/
8	292458	Rs.13,00,000/
9	292459	Rs.13,00,000/
10	292460	Rs.13,00,000/

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The Petitioner/ Accused would hereby acknowledge that dishonor of any one of the aforementioned cheques would entitle the Respondent/Complainant to rescind the present understanding and to initiate such appropriate proceeding/s, to not only revive the first information report that is questioned herein, but also to prosecute the Petitioner for offences punishable under provisions of the Negotiable Instruments Act and so also to recover the amount due with interest at the rate of 12% per annum and costs incurred by the Respondent/ Complainant in such pursuit.”

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NC: 2026:KHC:31316 WP No. 18976 of 2026

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HC-KAR

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In the light of the afore-quoted joint memo of the parties, I deem it appropriate to terminate the proceedings against the petitioners, as the dispute and the allegations are between the individuals and not against the State.

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Learned counsel for respondent No.2 at this juncture would submit that an application under Sections 497 and 503 of the BNSS, 2023 filed seeking release of Rs.2.3/crores is still pending consideration before the concerned Court.

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For the aforesaid reasons, the following:

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O R D E R

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(a) The criminal petition is disposed.

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(b) The impugned crime in Crime No.197/2025, pending before the II Additional Civil Judge and JMFC, Nelamangala, qua the petitioner, stands quashed.

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(c) In the light of the afore-quoted settlement and the consequent obliteration of the crime, the concerned Court shall consider the application filed under Sections 497 and 503 of the BNSS, 2023 seeking release of Rs.2.3/- crores, within an outer limit of

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