Dismissed

M/S Goms Electricals Pvt. Ltd. v. M/S Cauvery Electricals Pvt. Ltd.

Karnataka HC12 Jan 2026WP/19950/2022

Case brief

AI extract

What is this about?

Accused in a Section 138 NI Act case sought quashing of criminal proceedings after a related commercial suit was decreed, claiming compromise payments of Rs.18,00,000. Holding that admission of cheque issuance and dishonour meant the offence was already complete and no mini-trial was possible, the High Court dismissed the petition, leaving defences to trial.

What the court decided

AI extract

M/S Goms Electricals Pvt. Ltd. Vs M/S Cauvery Electricals… — Cheque Dishonour | Karnataka HC (2026)

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12^TH DAY OF JANUARY, 2026

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BEFORE

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THE HON'BLE MRS. JUSTICE M G UMA

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WRIT PETITION NO. 19950 OF 2022 (GM-RES)

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BETWEEN:

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M/S GOMS ELECTRICALS PVT LTD COMPANY REGISTERED UNDER COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NEW NO.43, OLD NO.113, 1^ST MAIN ROAD, RK NAGAR, MANDAVELLI, CHENNAI-600028 REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. PRABHU, MANAGING DIRECTOR.

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SRI ESSAKI PILLAI GOMS R/AT OLD NO.5, NEW NO.13, KARUNANITHI 3^RD STREET, KOTTURPURAM, CHENNAI-600085 THE MANAGING DIRECTOR OF M/S GOMS ELECTRICALS PVT LTD

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Digitally signed by PRASHANTH N V Location: High Court of Karnataka

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(BY SRI. G. MOHAN KUMAR, ADVOCATE)

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AND:

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…PETITIONERS

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M/S CAUVERY ELECTRICALS PVT LTD A COMPANY REGISTERED UNDER COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.237, CHICKPET MAIN ROAD, SHANTHAVEERAIAH LANE, BENGALURU - 560 053 ALSO BRANCH OFFICE AT NO.37 HOSPITAL ROAD, OPP. KEMPAIAH MAHARAJA COMPLEX, NEAR

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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ABHINAAYA THEATER BENGALURU - 560 053. REPRESENTED BY DIRECTOR MR. ANIL KUMAR

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…RESPONDENT

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(BY SRI. JAYANTH VENKATRAM, ADVOCATE SRI. DEVARAJU R., ADVOCATE)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA READ WITH SECTION 482 OF THE CRIMINAL PROCEDURE CODE, 1973 PRAYING TO QUASH THE PRIVATE COMPLAINT FILED UNDER SECTION 200 OF CRPC FOR OFFENCE PUNISHABLE UNDER SECTION 138 OF NEGOTIABLE INSTRUMENTS ACT 1991 AGAINST THE PETITION HEREIN (ANNEXURE-A) AND ETC.,

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THIS WRIT PETITION, COMING ON FOR HEARING - INTERLOCUTORY APPLN, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MRS. JUSTICE M G UMA

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ORAL ORDER

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The petitioners being accused Nos.1 and 2 are before this

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Court, seeking issuance of writ in the nature of certiorari to quash the criminal proceedings in C.C.No.7994/2021 on the file of the learned Additional Small Causes Judge at Bangalore (SCCH-26), registered for the offence punishable under Section 138 of Negotiable Instruments Act (for short, 'N.I. Act'), initiated against them.

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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Heard Sri G.Mohan Kumar, learned counsel for the petitioners and Sri Jayanth Venkatram, learned counsel for Sri Devaraju R., learned counsel for the respondent. Perused the materials on record.

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According to the learned counsel for the petitionersaccused, all the five cheques were issued in favour of the respondent - complainant and the same came to be dishonored as "payment stopped". It is the contention of the respondentcomplainant that there was no balance to honor the cheques and the petitioners have committed the offence punishable under Section 138 of N.I. Act. The dishonor of cheques, as contended by the complainant is not in dispute rather it is admitted. The only contention raised by the learned counsel for the petitioners is that, even though the cheques were dishonored and the private complaint came to be filed on 21.08.2021, there was compromise talks between the parties and Rs.18,00,000/- was paid in installments on various dates. According to the learned counsel for the petitioner, Rs.4,00,000/- each was paid on 04.04.2022, 05.04.2022 and 06.04.2022 and DD for Rs.2,00,000/was issued on

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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16.08.2022. Thus, it is his contention that, only a sum of Rs.5,00,000/- was due by the petitioner to the respondent which he is willing to pay, and in the meantime, the respondent has filed the Commercial Suit in O.S.No.1546/2022, which is already decreed. Therefore, the learned counsel for the petitioners prays for quashing the criminal proceedings.

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Per contra, it is the contention of the learned counsel for the respondent that, a total sum of Rs.45,00,000/- was due from the petitioners to the respondent. To pay the portion of the same, cheque for Rs.24,00,000/- was issued and the same came to be dishonored. Even though the petitioner contends that he has paid Rs.18,00,000/-, the same was not towards the amount covered under the cheques which was dishonored, but it was towards the amount that was due from the petitioner.

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The Commercial Suit in O.S.No.1546/2022 is already decreed as per the judgment and decree dated 21.10.2024 for Rs.27,50,000/-.

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My attention was drawn by the learned counsel for the respondent to the fact that, the Trial Court while passing the

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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order by rejecting the application under Section 143-A of N.I. Act specifically observed that, whether a sum of Rs.16,00,000/paid by the accused is towards the cheque amount or towards the total amount that is due will have to be determined during trial.

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When the accused admits issuance of cheques towards legally enforceable debt and also admits that the cheques so issued came to be dishonored, issuance of notice, non-payment of the cheque amounts as demanded and filing of the private complaint, contends that there was a compromise between the parties and some part payment is made, a mini trial cannot be held by this Court to determine as to whether the part payments claimed to have been made by the petitioners is towards the cheque amount or not. Even if the said amount is to be taken as payment towards the cheque amount, which was dishonored, admittedly, the entire cheque amount has not yet been paid. Even if the accused pays the cheque amount now, the commission of the offence is already complete. The petitioners is at liberty to take defence before the Trial Court and it is for the Trial Court to consider those

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NC: 2026:KHC:1627 WP No. 19950 of 2022

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HC-KAR

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defences. Under such circumstances, the writ petition is liable

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to be dismissed on merits.

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Accordingly, it is dismissed .

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Sd/(M G UMA) JUDGE

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MKM CT:VS List No.: 1 Sl No.: 13

M/S Goms Electricals Pvt. Ltd. v. M/S Cauvery Electricals Pvt. Ltd.

Case brief

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M/S Goms Electricals Pvt. Ltd. v. M/S Cauvery Electricals Pvt. Ltd.

Case brief

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