Kathiresan Vs the State Rep.by Its — Cheque Dishonour | Madras HC (2026)

Kathiresan Vs the State Rep.by Its — Cheque Dishonour | Madras HC (2026)

What the court decided

AI extract

Outcome

Quashing of the entire proceedings in CC.No.2649 of 2022 (Judicial Magistrate-VII, Coimbatore) and of the entire Section 138 NI Act proceedings in STC.No.792 of 2025 (Judicial Magistrate-IV, Coimbatore); connected miscellaneous petitions (Crl.MP.Nos.6722 & 6723 of 2023) closed; I Additional District Court, Coimbatore to dispose of OS.No.586 of 2019 uninfluenced by the criminal settlement.

Issue for consideration

Whether the entire criminal proceedings in CC.No.2649 of 2022 (arising from FIR No.23 of 2020, Sections 120(b) & 420 IPC), pending before the Judicial Magistrate-VII, Coimbatore, are liable to be quashed in view of the settlement between the parties. +2 more

Court's answer

In view of the settlement made between the parties, whereby the petitioners returned the entire principal amount received from the second respondent and she acknowledged it, the entire proceedings in CC.No.2649 of 2022 (Judicial Magistrate-VII, Coimbatore) and the Section 138 NI Act proceedings in STC.No.792 of 2025 (Judicial Magistrate-IV, Coimbatore) cannot be sustained and the same are liable to be quashed.

Ratio / Principle

The second respondent has no objection to the quashing of both the impugned proceedings and the Section 138 NI Act proceedings, which forms the basis for treating both prosecutions as unsustainable.

Key takeaways

The I Additional District Court, Coimbatore shall dispose of OS.No.586 of 2019 without any influence of the settlement made between the parties in the criminal proceedings; the civil suit proceeds independently of the quash.ratio¶31
Operative disposition: the criminal original petition is allowed; the entire proceedings in CC.No.2649 of 2022 (Judicial Magistrate-VII, Coimbatore) and the entire Section 138 NI Act proceedings in STC.No.792 of 2025 (Judicial Magistrate-IV, Coimbatore) stand quashed, and the connected miscellaneous petitions are closed.ratio¶36

Detailed headnote1 paragraphs

Madras High Court (G.K. Ilanthiraiyan, J.; decision dated 06.04.2026) allowed a Section 482 Cr.P.C. quash petition (Crl.O.P.No.10457 of 2023) by Kathiresan and Geetharani (Accused Nos.1 and 2). The prosecution stemmed from FIR No.23 of 2020 (Central Crime Branch, Coimbatore) for offences under Sections 120(b) & 420 IPC, alleging failure to convey property despite a sale agreement dated 29.12.2018 for Rs.86,87,615/- and part payment of Rs.61,87,615/- under a subsequently cancelled power of attorney; the final report was taken on cognizance in CC.No.2649 of 2022 (Judicial Magistrate-VII, Coimbatore). A cheque issued to repay the amount was dishonoured for 'funds insufficient', spawning a Section 138 NI Act prosecution in STC.No.792 of 2025 (Judicial Magistrate-IV, Coimbatore). The petitioners having returned the entire principal amount, acknowledged by the second respondent/defacto complainant Muthukani who raised no objection, the Court held that in view of the settlement neither the CC nor the STC could be sustained, quashed both sets of proceedings and closed Crl.MP.Nos.6722 & 6723 of 2023. The pending civil suit OS.No.586 of 2019 (interest claim) before the I Additional District Court, Coimbatore was expressly preserved, that Court being directed to dispose of it without any influence of the criminal settlement.

Crl.O.P.No.10457 of 2023

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 06.04.2026

CORAM:

THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN

Crl.O.P.No.10457 of 2023 and Crl.MP.Nos.6722 & 6723 of 2023

1.Kathiresan 2.Geetharani

... Petitioners

Vs.

1.The State Rep. By its Inspector of Police, Central Crime Branch(CCB), Coimbatore City, Coimbatore District (FIR No.23 of 2020) 2.Muthukani

... Respondents

Prayer: Criminal Original petition filed under Section 482 of Cr.P.C. praying to call for the records relating to in the CC.No.2649 of 2022 on the file of Judicial Magistrate-VII, Coimbatore and to quash the same as illegal against the petitioners herein / accused No.1 and 2.

For Petitioners : Mr.R.Srinivas, Senior Counsel for Mr.S.Sithirai Anandam For Respondents For R1 : Mr.A.Gopinath, Government Advocate(crl.side) For R2 : Mr.T.Mohan, Senior Counsel for Mr.M.Santhanaraman

Page 1 of 6

https://www.mhc.tn.gov.in/judis

Crl.O.P.No.10457 of 2023

ORDER

This criminal original petition has been filed praying to quash the proceedings in CC.No.2649 of 2022 on the file of Judicial Magistrate-VII, Coimbatore in respect of the petitioners.

2 . The case of the prosecution is that one Madheshwaran

contacted the defacto complainant after knowing the fact that the defacto complainant was searching for a place to start a grocery shop. As such,he took the defacto complainant and her husband to the subject property measuring 4½ cents at Kovilpalayam. The land owners Ganesan and his wife Chithra (A3 and A4) gave Power of Attorney Deed dated 30.09.2018 (Doc.No.14848 of 2018] to the 1st petitioner /Accused No.1 who is none other than the husband of the second petitioner. The defacto complainant and her husband had negotiation with the land owners and finally they agreed to purchase the said properties for Rs.86,87,615/- under an unregistered sale agreement dated 29.12.2018. According to the defacto complainant, they made part payment of Rs.61,87,615/- on various dates to the 1^st petitioner / Accused No.1 under due acknowledgment. But after sometime, the 1st petitioner / Accused No.1 did not choose to execute the sale deed since the power of attorney deed in the name of the 1^st petitioner / Accused No.1 was cancelled. Hence, a complaint was lodged. Page 2 of 6

https://www.mhc.tn.gov.in/judis

Crl.O.P.No.10457 of 2023

3 . On receipt of the said complaint, the first respondent registered FIR in crime No.23 of 2020 for the offence punishable under Sections 120(b) & 420 of IPC. After completion of investigation, final report was filed and the same was taken cognizance by the trial court in CC.No.2649 of 2022 on the file of the Judicial Magistrate-VII, Coimbatore. While pending trial, the petitioners have filed this quash petition.

4 . It is seen that in order to repay the aforementioned amount

which was received by the petitioners, the petitioners issued cheque, which was presented for collection. However, it was returned dishonoured for the reason ‘funds insufficient’ and as such, the second respondent initiated prosecution under Section 138 of NI Act against the petitioners. Now the entire amount has been received by the respondent and the respondent also duly acknowledged the same. However, now the parties namely the accused and the second respondent have settled the entire issues as the petitioners returned the entire amount which was received from the second respondent i.e. to the tune of the entire principal amount and the second respondent also acknowledged the same. It is seen

that the second respondent has no objection to quash the impugned Page 3 of 6

https://www.mhc.tn.gov.in/judis

Crl.O.P.No.10457 of 2023 proceedings and also the proceedings initiated under Section 138 of NI Act in STC.No.792 of 2025 on the file of the Judicial Magistrate-IV, Coimbatore.

5 . Therefore, in view of the settlement made between the

parties, the entire proceedings in CC.No.2649 of 2022 on the file of the Judicial Magistrate-VII, Coimbatore and the proceedings initiated under Section 138 of NI Act in STC.No.792 of 2025 on the file of the Judicial Magistrate-IV, Coimbatore cannot be sustained and the same are liable to be quashed.

6 . Insofar as the interest is concerned, already the second respondent initiated suit in OS.No.586 of 2019 on the file of the I Additional District Court, Coimbatore and it is pending for adjudication. It is made clear that I Additional District Court, Coimbatore shall dispose of the suit in OS.No.586 of 2019 without any influence of any settlement made between the parties in the criminal proceedings.

7 . In the result, this criminal original petition is allowed and the entire proceedings in CC.No.2649 of 2022 on the file of the Judicial Magistrate-VII, Coimbatore and the entire proceedings initiated under Page 4 of 6

https://www.mhc.tn.gov.in/judis

Crl.O.P.No.10457 of 2023

Section 138 of NI Act in STC.No.792 of 2025 on the file of the Judicial

Magistrate-IV, Coimbatore, are quashed. Consequently, connected miscellaneous petitions are closed.

06.04.2026

Index : Yes/No Neutral citation : Yes/No Speaking/non-speaking order lok

To 1 .I Additional District Court, Coimbatore 2.Judicial Magistrate-VII, Coimbatore 3.The State Rep. By its Inspector of Police, Central Crime Branch(CCB), Coimbatore City, Coimbatore District 4.The Public Prosecutor, High Court of Madras

Page 5 of 6

https://www.mhc.tn.gov.in/judis

Crl.O.P.No.10457 of 2023

G.K.ILANTHIRAIYAN, J.

lok

Crl.O.P.No.10457 of 2023

06.04.202 6

Page 6 of 6

https://www.mhc.tn.gov.in/judis