Criminal Petition No. 8502 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO.8502 OF 2024 C/W CRIMINAL PETITION NO.8508 OF 2024 IN CRL.P NO.8502/2024 BETWEEN: 1. AMARESH S/O SUBBARAO AGED ABOUT 49 YEARS 2. S.UMESH S/O SUBBARAO AGED ABOUT 59 YEARS 3. VAGEESH S/O SUBBARAO AGED ABOUT 57 YEARS PETITIONER NOS.1 TO 3 R/O GOPALA KHB COLONY MIG 5 SHIVAMOGGA - 577201 Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA …PETITIONERS
Legal Reasoning
(BY SRI. PRASAD B S, ADVOCATE) AND: 1. STATE OF KARNATAKA BY TUNGA NAGAR POLICE STATION SHIVAMOGGA - 2 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 REPRESENTED BY STATE PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA BENGALURU - 560001 2. MOHAN S/O GANESHAPPA AGED 50 YEARS R/AT RAGHAVENDRA ENGINEERING NEAR PADMA TALKIES GOPALA SHIVAMOGGA - 577 203 (BY SRI.LAKSHMAN B, HCGP FOR R.1; NOTICE TO R.2 IS SERVED AND UNREPRESENTED) …RESPONDENTS THIS CRL.P IS FILED U/SEC.482 (FILED U/S.528 BNNS) CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.296/2019 FOR THE OFFENCE P/US/ 406, 420 R/W SEC.34 OF IPC PENDING ON THE FILE OF JMFC III, SHIVAMOGGA IN SO FAR AS PETITIONERS ARE CONCERNED AND ETC. IN CRL.P NO.8508/2024 BETWEEN: 1. AMARESH S/O SUBBARAO AGED ABOUT 49 YEARS 2. S.UMESH S/O SUBBARAO AGED ABOUT 59 YEARS 3. VAGEESH S/O SUBBARAO AGED ABOUT 57 YEARS PETITIONER NOS.1 TO 3 ARE R/O GOPALA - 3 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 KHB COLONY MIG 5 SHIVAMOGGA (BY SRI. PRASAD B S, ADVOCATE) AND: 1. STATE OF KARNATAKA ...PETITIONERS BY TUNGA NAGAR POLICE STATION SHIVAMOGGA REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA BENGALURU-560001 2. PRAKASH S/O B. RAMAPPA AGED 54 YEARS R/AT PADMA TALKIES OPPOSITE GOPALA SHIVAMOGGA - 577208 (BY SRI.LAKSHMAN B, HCGP FOR R.1; NOTICE TO R.2 IS SERVED AND UNREPRESENTED) ...RESPONDENTS THIS CRL.P IS FILED U/SEC.482 (FILED U/S.528 BNNS) CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING THAT THIS HONOURABLE COURT MAY BE PLEASED TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.295/2019 FOR THE OFFENCE P/U/SEC.406, 420 R/W SEC.34 OF IPC PENDING ON THE FILE OF JMFC III, SHIVAMOGGA IN SO FAR AS PETITIONERS ARE CONCERNED AND ETC. THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR - 4 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 ORAL ORDER The petitioners, designated as accused, have been charge-sheeted for offences punishable under Sections 406 and 420 read with Section 34 of the Indian Penal Code (IPC) and now seek relief from this Court. 2. The prosecution alleges that petitioner Nos. 1 and 2—accused Nos. 1 and 2—approached the de facto complainants and induced them to subscribe to the membership of accused No. 4 company, promising that upon investing money, they would receive gold coins. Believing these representations, the de facto complainants invested money in accused No. 4 company. Similarly, C.Ws. 11 to 15 also invested money and subscribed to the membership. Subsequently, when they approached the company requesting the issuance of gold coins or the return of their money, accused No. 4 failed to comply and instead closed the company. 3. Despite being served with notice, the de facto complainants have not appeared in person or through counsel and are therefore placed ex-parte. 4. Heard the learned counsel for the petitioners and the learned High Court Government Pleader (HCGP) for the State. 5. Similar cases have been registered against accused No. 4 in the State of Tamil Nadu, leading to proceedings in the High Court of Madras in Crl.O.P. Nos. 30144/2019 and - 5 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 connected petitions. In those proceedings, accused No. 4 filed applications for compounding the offences, stating that the amounts invested by the complainants had been returned. The funds due to 141 unwilling victims were secured in the deposits of accused No. 4’s bank accounts, which had already been frozen. 6. The petitioners have produced copies of the online application forms submitted by the de facto complainants, indicating that they invested sums of Rs.33,000 with accused No. 4 company. Similarly, the accused have also made investments in accused No. 4 company. There is no material evidence to substantiate that the petitioners, who are agents of accused No. 4 company, induced the de facto complainants and other charge-sheet witnesses to invest money by promising gold coins in return. The allegations primarily pertain to accused No. 4’s failure to either return the money or deliver the promised gold coins. There is no material to substantiate that accused Nos. 1 to 3 conspired with accused No. 4 in receiving funds from the de facto complainants and other charge-sheet witnesses. 7. Accused No. 4 had also approached the Hon’ble Supreme Court in SLP (Crl.) No. 7295/2019, which was
Decision
disposed of with the following directions: a) All claimants are directed to approach the High Court by filing affidavits stating that they have no objection to quashing the criminal proceedings arising out of the aforesaid FIR insofar as the petitioner is concerned. - 6 - NC: 2025:KHC:12773 CRL.P No. 8502 of 2024 C/W CRL.P No. 8508 of 2024 b) Upon filing the affidavits, the High Court shall quash the proceedings arising out of the aforesaid FIR insofar as the petitioner is concerned. c) Until these affidavits are filed and the order of quashing is passed by the High Court, the amount shall not be disbursed. The amount shall be disbursed only after the filing of the affidavits. d) The petitioner shall also be involved in this process to verify that only genuine persons have filed the affidavits and received the payments. 8. In the absence of substantial evidence that the petitioners/accused induced the de facto complainants to invest money with accused No. 4 with an intention to deceive, the continuation of the criminal proceedings would be an abuse of the process of law. ORDER i. Accordingly, petitions are allowed. The impugned proceedings in C.C.No.295/2019 and C.C.No.296/2019 on the file of JMFC III Shivamogga are hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE NBM,TIN List No.: 1 Sl No.: 10