Sri G V Chandrashekar vs State Of Karnataka
2022 Latest Caselaw 85 Kant

                           1


  IN THE HIGH COURT OF KARNATAKA AT BENGALURU

       DATED THIS THE 04TH DAY OF JANUARY, 2022

                         BEFORE

          THE HON'BLE MR. JUSTICE K.NATARAJAN

           CRIMINAL PETITION NO.7854 OF 2021

BETWEEN

SRI G V CHANDRASHEKAR
S/O VENKATASWAMY REDDY
AGED ABOUT 54 YEARS
R/AT NO GUNJUR VILLAGE
VARTHUR HOBLI
BENGALURU - 560 087.                   ... PETITIONER

(BY SRI KIRAN S. JAVALI, SENIOR ADVOCATE
 FOR SRI BHARATH M, ADVOCATE)

AND

STATE OF KARNATAKA
STATION HOUSE OFFICER
SIDDAPURA POLICE STATION
BANGALORE - 560 011
REP. BY STATE PUBLIC PROSECUTOR
HIGH COURT OF KARNATAKA
BENGALURU.                             ... RESPONDENT

(BY SRI. MAHESH SHETTY, HCGP
 SRI. S. SRIRANGA, SENIOR ADVOCATE ALONG WITH
 SRI. S. KRISHNA, ADVOCATE FOR DEFACTO COMPLAINANT)

      THIS CRIMINAL PETITION IS FILED UNDER SECTION 438
OF THE CODE OF CRIMINAL PROCEDURE, PRAYING TO
ENLARGE THE PETITIONER ON BAIL IN THE EVENT OF HIS
ARREST IN CR.NO.162/2021 OF SIDDAPURA P.S., BENGALURU
CITY FOR THE OFFENCES PUNISHABLE UNDER SECTIONS
506,504,406,420 OF IPC.
                                      2


     THIS CRIMINAL PETITION HAVING BEEN HEARD AND
RESERVED FOR ORDERS ON 21.12.2021 THIS DAY, THE COURT
PRONOUNCED THE FOLLOWING:

                                ORDER

This petition is filed by the petitioner-accused No.1

under Section 438 of Cr.P.C., for granting anticipatory bail

in Crime No.162/2021 registered by Siddapura Police

Station, Bengaluru for the offences punishable under

Sections 506, 504, 406, 420 of the Indian Penal Code,

1860 (for short 'IPC').

2. Heard the arguments of Sri Kiran S. Javali,

learned Senior counsel appearing for the petitioner

counsel, learned High Court Government Pleader for the

respondent-State and Sri S.Sriranga, Senior counsel

appearing for the respondent counsel.

3. The case of the prosecution is that the

complainant-Shantha.C has filed a complaint to the Police

on 11.09.2021 alleging that she is engaged in business

under the name and style of M/s.GTV Estates at

Jayanagar, Bengaluru. The accused entered into an

agreement of sale with the complainant on 07.01.2019 in

respect of property bearing survey No.234/2 measuring 2

Acres 23 Guntas situated at Gunjur Village, Varthur Hobli,

Bengaluru. When the complainant was ready and willing

to perform her part of contract, she came to know that the

accused has entered into an agreement of sale in respect

of the said land alongwith five other properties with one

Cornerstone Bay East Developers Private Limited

(hereinafter referred to as 'Cornerstone Developers') for

Rs.127.00 crores and also came to know that a civil case is

pending in respect of the said property in

O.S.No.7109/2014. The accused took the complainant

along with two others near the Cornerstone Developers

and represented that he would pay Rs.5.96 crores and out

of which, the accused paid Rs.99.00 lakhs to the

complainant and promised to pay the balance amount

within 90 days and forcefully cancelled the agreement of

sale and also entered into a Memorandum of Agreement

(MOA). It is further alleged that when the complainant

demanded the accused to pay the balance amount, the

accused had entered into an agreement of sale and joint

venture agreement (hereinafter referred to as 'JV

agreement') with Mysore Projects Private Limited and

promised to pay Rs.9,37,88,650/-. Out of which, the

accused had paid Rs.3.00 crores to the complainant and

when the complainant approached the accused and

demanded to pay the balance amount, the accused

threatened her with dire consequence and abused her in

filthy language. Therefore, she had filed complaint to the

Police. The petitioner is apprehending his arrest in the

hands of the Police, hence, he has approached the

Sessions Court for granting anticipatory bail which came to

be rejected. Hence, he is before this Court.

4. The learned Senior counsel appearing for the

petitioner has contended that the dispute between the

complainant and the petitioner is purely civil in nature

based upon the civil contract i.e., agreement of sale and

payment of sale consideration entering into joint

development agreement in respect of purchasing the

property and developing the property. But the complainant

has filed a false complaint against the accused only to

harass him by converting the civil dispute into criminal

case which is not permissible under the law. The

complainant is also a party to the JV agreement and

subsequently agreed to receive the money from the

petitioner and filed the false complaint at the instance of

her son-in-law and a sum of Rs.4.00 crores has been paid

to the complainant which is found in the registered

document dated 11.08.2020 and in spite of written

agreement between both the parties and memorandum of

agreement also cancelled on 11.08.2020 but a false

complaint has been filed by the complainant. The Police

without making any preliminary enquiry as required under

the Lalitha Kumari's case, registered a case against the

accused which is violation of guidelines issued by the

Hon'ble Supreme Court. The petitioner has already filed a

suit before the Commercial Court in Comm.AA

No.64/2021. The petitioner is ready to abide by the

conditions that may be imposed by this Court and by

taking various ground prayed for granting bail.

5. The learned High Court Government Pleader

appearing for the State seriously objected the bail petition

and contended that the petitioner is required for custodial

interrogation. Hence, prayed for dismissing the petition.

6. Learned Senior counsel appearing for the

defacto-complainant who had assisted the prosecution by

filing the written submission has contended that the

petitioner along with three others have approached the

complainant for selling the land in survey No.234/2 and

entered into an agreement for Rs.9.25 crores on

07.01.2019. Later the complainant came to know that the

petitioner cheated her as he has already entered into

memorandum of agreement with Cornerstone Developers

on 25.03.2017 along with other properties for Rs.127.00

crores. Therefore, the petitioner has forced the

complainant to relinquish her right in the property in

favour of Cornerstone Developers. Subsequently, the

petitioner induced the complainant to transfer her right

under the agreement of sale and entered into tripartite

memorandum of agreement and assured that an amount

of Rs.5.96 crores would be paid to her by the Cornerstone

Developers and the said Developers has paid Rs.99.00

lakhs to the complainant with assurance to pay balance

amount within 90 days but later came to know that there

is a litigation in O.S.No.7109/2014 which is pending.

Subsequently, the petitioner entered into JV Agreement

with Mysore Projects Private Limited and caused loss to the

complainant. The petitioner got issued legal notice through

his nephew to the complainant, her daughter and her son-

in-law, but the petitioner have not sold the land to

Cornerstone Developers but sold to the Mysore Projects

Private Limited for Rs.24,08,77,300/- by breaching the

tripartite agreement. After the execution of cancellation

deed, the petitioner issued a cheque on 06.11.2020 for

Rs.9,37,88,650/- but it was dishonored. A complaint also

filed by the complainant in PCR No. 3598/2021. The

complainant came to know that the petitioner has entered

into agreement of sale with others and cheated the

complainant as well as her son-in-law and another FIR was

also registered against one G.V.Palaksha who is brother of

the accused in Crime No.131/2021. It is further contended

that the accused is involved in various cases, the

complainant had filed various cases in Crime

Nos.172/2021, 131/2021, 194/2020, 40/2021, 68/2021,

22/2021 and 39/2021 and all these cases were registered

against the petitioner and his family members. Therefore,

contended that it is not a fit case for granting anticipatory

bail. Hence, prayed for dismissing the petition.

7. Having heard the arguments of learned Senior

counsel, learned High Court Government Pleader and on

perusal of the records, which reveals that during the

petitioner entered into an agreement of sale in the year

2019 with the present complainant for selling the property

in survey No.234/2 situated at Gunjur which belongs to his

joint family. Prior to that, there was a civil suit in respect

of the said property which was pending in

O.S.No.7109/2014 and subsequently, he was said to be

entered into agreement of sale with Cornerstone

Developers on 25.03.2017. But, later the accused along

with the complainant and the said Cornerstone Developers

have entered into tripartite agreement on 14.03.2019 and

in the said agreement, the complainant agreed to receive

Rs.5.96 crores from Cornerstone Developers and

subsequently, the said tripartite agreement has been

cancelled on 11.08.2020. Then the petitioner has sold the

said land to Mysore Projects Private Limited on 20.08.2020

for Rs.24.08 crores. The petitioner in order to repay the

money to the complainant had issued a cheque for

Rs.9,37,88,650/- on 06.11.2020 drawn on Syndicate Bank

and the said cheque was dishonored and the complainant

already filed a private complaint on 23.02.2021 in PCR

No.3598/2021 for the offence punishable under Section

138 of N.I. Act. Subsequently, the complainant has filed

this complaint against the petitioner before the Siddapura

Police. It is also revealed during the investigation that the

complaint in Crime No.162/21 has been transferred to

Basavanagudi Police for the purpose of investigation as per

the direction of the Deputy Commissioner of Police. The

tripartite agreement was also cancelled and the petitioner

entered into a fresh agreement of sale with the 3 rd parties

and he has agreed to pay amount to the complainant and

also issued a cheque for discharging his liability. The

complainant has already filed PCR under Section 138 of

N.I. Act in respect of dishonor of the cheque and she has

also received a portion of the amount towards the balance

payable to her.

8. It appears that the dispute is civil in nature.

The nephew of the accused has already been issued a legal

notice to the complainant and also filed a commercial suit

against the complainant, her son-in-law and her daughter

including the petitioner which is pending in Comm. AA

No.64/2021 before the Additional City Civil Court and

Session Judge, Commercial Court at Bengaluru. Some of

the parties have already been entered appearance and the

said suit is pending. Even in the complaint, the

complainant herself has stated and admitted regarding the

cancellation of the sale agreement by sale receiving a

portion of amount. Such being the case, if any balance

amount was not received, she could have filed suit for

recovery of balance amount from the petitioner or else,

she could have filed suit for declaration for setting aside

the cancellation and seeking relief of specific performance

of contract. Even otherwise, she has already received the

cheque from the accused and a private complaint filed for

dishonor of the cheque. Such being the case, filing the

complaint by the complainant against the petitioner is

nothing but conversion of civil dispute into criminal case

which should not have been entertained by the Police and

it has to be decided by the Civil Court.

9. It also appears that the son-in-law of the

complainant along with her daughter have also filed

various complaint against the petitioner and others. The

Police ought to have made a preliminary enquiry in respect

of dispute prior to registering the FIR. Therefore, I am of

the view, that the matter requires detailed investigation.

All   these     evidences     are        based   upon     the

documents/agreements/deed           of    cancellation/MOU/JV

agreement etc. Even otherwise, the alleged offences are

though non-bailable but not punishable with death of

imprisonment of life and triable by the Magistrate.

10. Therefore, the judgment relied upon by the

counsel for the complainant is not applicable to the case on

hand since those judgments are pertaining to the quashing

of FIR. It is well settled by the Hon'ble Supreme Court in

the case of Gurbaksh Singh Sibbia Etc. vs. State of

Punjab, wherein, it has held that the accused is entitled

for anticipatory bail, the report is guaranteed under Article

21 of the Constitution of India. Therefore, by imposing

certain conditions, if bail is granted, no prejudice would be

caused to the prosecution case. Hence, the following:

ORDER

Accordingly, the criminal petition is allowed.

The respondent/Siddapura/Basavanagudi Police is

directed to release the petitioner-accused No.1 on bail in

the event of his arrest in Crime No.162/2021 registered by

Siddapura Police for the offences punishable under

Sections 504, 506, 406, 420 of IPC, subject to the

following conditions:

(i) Petitioner shall execute a personal bond for a sum of Rs.5,00,000/- (Rupees Five Lakh only) with two sureties for the likesum to the satisfaction of the Investigating Officer;

(ii) Petitioner shall surrender within 15 days from the date of receipt of the certified copy of the order;

(iii) Petitioner shall not indulge in similar offences strictly;

(iv) Petitioner shall not tamper with the prosecution witnesses directly/ indirectly;

(v) Petitioner shall be deemed custody for the purpose of any recovery under Section 27 of the Indian Evidence Act, 1872;

   (vi)    Petitioner      shall   appear      before      the
           Investigating Officer on every Monday,
           Wednesday and Friday between                 10.00
           a.m. and 5.00 p.m., for a period of one
           month and thereafter, he shall appear
           once in a week on every Monday till filing
           of the charge-sheet.


   If     any   of   the   conditions   are    violated,   then       the

prosecution/defacto        complainant    is   at   liberty      to   file

application for cancellation of bail.


                                                  Sd/-
                                                 JUDGE




GBB