Criminal Petition No. 5669 of 2025 · Karnataka High Court · 2026

2. SRI. NITESH SHETTY S/O P.V. SHETTY AGED ABOUT 48 YEARS R/AT NO. 6A, NITESH MAYFAIR, 31, KASTURBA ROAD CROSS, NEAR BRITISH LIBRARY, BENGALURU - 560 001

3. SRI. L.S. VAIDYANATHAN S/O SRI. L.A. SAPTHARISHI AGED ABOUT 64 YEARS Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 HC-KAR R/AT NO. 35/7, SHRUSTI, 11TH CROSS, 6TH MAIN, MALLESHWARAM, BENGALURU - 560 003.

4. SRI. PRADEEP NARAYAN S/O K.C. BADRINARAYANA AGED ABOUT 61 YEARS R/AT NO. B4, SR. POLICE OFFICERS RESIDENTIAL COMPLEX, 23/24, HOSUR ROAD, BENGALURU - 560 025.

5. SMT. DIPALI KHANNA W/O SRI MOHAN KRISHEN KHANNA AGED ABOUT 73 YEARS R/AT NO. C-II/133, SATYA MARG, CHANKYAPURI, DELHI - 110 021.

6. S. ANANTHNARAYANAN S/O KOLLENGODE NARAYAN SUBRAMANIAN AGED ABOUT 74 YEARS R/AT NO. 401-B. PASCOAL SQUARE, SUNDER NAGAR, KALINA, MUMBAI - 400 098. (BY SRI. SIDDHARTH SUMAN, ADVOCATE) …PETITIONERS AND:

1. M/S YES BANK LTD., WITH ITS REGISTERED OFFICE AT YES BANK TOWER, IFC 2, 15TH FLOOR SENAPATI BAPAT MARG ELPHINSTONE (W), MUMBAI - 400 013 REPRESENTED BY MR. KUMAR ABHISHEK - 3 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 HC-KAR

2. M/S JC FLOWERS ASSET RECONSTRUCTION LTD., AN ASSET RECONSTRUCTION COMPANY REGISTERED UNDER SECTION 3 OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 ACTING IN ITS CAPACITY AS JCF YES TRUST 2022-23 HAVING ITS REGISTERED OFFICE AT, CG HOUSE, 12TH FLOOR, DR. ANNIE BESANT ROAD, WORLI, MUMBAI - 400 030 REPRESENTED BY ITS SRI. S. MANIMARAN. S …RESPONDENTS (BY SMT. POORNIMA HATTI, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S 482 OF CR.PC (FILED U/S 528 BNNS) PRAYING TO A. QUASH THE PRIVATE COMPLAINT AT ANNEXURE-A FILED BY THE RESPONDENT NO.1 AND THE SUBSEQUENT AMENDED PRIVATE COMPLAINT AT ANNEXURE- A1 IN C.C.NO.800/2020 WHICH IS NOT PENDING LEARNED XVI ADDITIONAL COURT OF SMALL CAUSES AND ACJM AT BENGALURU (SCCH-14), IN SO FAR AS THE PETITIONERS ABOVE NAMED ARE CONCERNED. - 4 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 HC-KAR THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER Heard Sri. Siddharth Suman, learned counsel appearing for the petitioners and Smt. Poornima Hatti, learned counsel appearing for respondent No.2 and have perused the material on record.

2. During the pendency of the proceedings, the parties to the lis have settled the dispute among themselves and have filed a joint memo. The joint memo reads as follows: "JOINT MEMO FILED BY PETITIONER NO.1 AND RESPONDENT NO.2 IN THE ABOVE MATTER The Petitioner No.1 and Respondent No.2 respectfully submits as under:

2. The Petitioners has filed the present petition under Section 482 of CrPC for quashing the private complaint and the entire proceedings in C.C. No. 800/2020 which is pending before the Learned XVI Additional Court of Small Cause and ACJM at Bengaluru (SCCH-14). The Respondent no.1 had filed the private complaint against the Petitioners herein and another director alleging commission of offence under Section 25 of the Payment and Settlement - 5 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 HC-KAR Systems Act, 2007 r/w applicable provisions of the Negotiable Instruments Act, 1881. The complaint was subsequently amended and the original complainant was substituted by Respondent No.2, pursuant to the assignment agreement dated 16.12.2022, executed between Respondent No.2 and YES Bank Limited, wherein YES Bank Limited assigned the financial assets, being the loans sanctioned to the Petitioner No.1 along with the rights, title, interest in the financing documents and the security created to secure the loan, to Respondent No.2. As per the terms of the assignment agreement and the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Respondent No.2 is deemed to be the secured lender of the Petitioner. ref. Letter read with JCFARC/HD/25-26/3419,

3. During the pendency of the instant proceedings, Respondent No.2 and Petitioner No.1 Company has entered into a settlement, vide Settlement Letters bearing reference JCFARC/HD/25-26/3416 04.08.2025 no. JCFARC/HD/25-26/3670 dated December 17, 2025 for Reinstatement of issued by Petitioner Comprehensive Settlement, with extension of payment timeline upto December 31, 2025 and also read with Letter ref. no. JCFARC/HD/25- 26/3671 dated December 17, 2025 issued by Petitioner No.1 for Reinstatement of Settlement sanctioned to Borrower, with extension of payment timeline upto December 31, 2025 towards full and final settlement of the entire loan outstanding ("Settlement Letters"). Copies of the aforesaid Settlement Letters are annexed herewith as Document No.1(Colly).

4. In compliance with the aforesaid Settlement Letters, the Petitioner No.1 has made payment of the Settlement Amount of Rupees Twenty-Two Crore and Twenty Two Lakhs Only) to Respondent No.2 and Respondent No.2 hereby acknowledge receipt of the said payment towards full and final settlement of the entire loan outstanding and HC-KAR

6. - 6 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 Respondent No.2 confirms that no amount is due and payable by Petitioner No.1. Pursuant to receipt of the settlement amount (as stipulated in the Settlement Letters), Respondent No.2 confirms that Petitioners herein or other accused C.C.800/2020 are not liable to pay any amount to Respondent No.2 In view of receipt of settlement amount (as stipulated Letters) by the Settlement Respondent No.2, it is confirmed by Respondent No.2 that the entire loan outstanding of Petitioner No.1 stands discharged. Therefore, Respondent No.2 shall make requisite filings for withdrawal of the criminal proceedings initiated against the Petitioners herein C.C.800/2020. accused Accordingly, in view of the settlement, the present criminal petition may be considered in terms of the settlement arrived at between the Respondent No.2 and the Petitioner No.1 and the complaint and proceedings in C.C. 800/2020 pending on the file of Learned XVI Additional Court of Small Cause and ACJM at Bengaluru (SCCH-14) is required to be quashed. Wherefore, it is most respectfully submitted and prayed that this Hon'ble Court may be pleased to consider this joint memo and recording the settlement arrived between the Petitioner No.1 and Respondent No.2, and accordingly pass necessary orders for quashing of the complaint and entire proceedings in C.C. 800/2020 pending on the file of Learned XVI Additional Court of Small Cause and ACJM at Bengaluru (SCCH-14), in the interest of justice and equity.

3. In the light of the settlement arrived at between the parties, I deem it appropriate to accept the joint memo and - 7 - NC: 2026:KHC:3213 CRL.P No. 5669 of 2025 HC-KAR close the proceedings against the petitioners in the subject petition.

4. The crime so registered against these petitioners as well as the charge sheet so filed pursuant to the crime in C.C.No.800/2020 stands quashed.

5. For the aforesaid reasons, the following: ORDER (i) Criminal Petition is disposed. (ii) Proceedings in C.C.No.800/2020 pending before the XVI Additional Court of Small Causes and ACJM at Bengaluru, stands quashed qua the petitioners. Sd/- (M.NAGAPRASANNA) JUDGE JY List No.: 4 Sl No.: 7