Karnataka High Court
Agarwal Coal Corporation Pvt. Ltd vs Benaka Sponge Iron Pvt Ltd on 19 August, 2025
Author: S.Vishwajith Shetty
Bench: S.Vishwajith Shetty
-1-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 19TH DAY OF AUGUST, 2025
BEFORE
THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY
CRIMINAL PETITION NO.100988 OF 2024 C/W
CRIMINAL PETITION NOS.100981, 100982, 100984,
100985, 100986, & 100987 OF 2024
(482 (CR.P.C.)/528 (BNSS))
IN CRL.P. NO. 100988 OF 2024:
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
Digitally signed
by RAKESH S ... PETITIONER
RAKESH HARIHAR
S Location: HIGH (BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
COURT OF
HARIHAR KARNATAKA
DHARWAD
BENCH AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
-2-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
TQ. AND DIST. BALLARI.
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.131/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDITIONAL CIVIL JUDGE AND JMFC,
AT BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1095/2015.
IN CRL.P. NO. 100981 OF 2024:
-3-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
-4-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.130/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDITIONAL CIVIL JUDGE AND JMFC,
AT BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1098/2015.
IN CRL.P. NO. 100982 OF 2024:
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
-5-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
-6-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.133/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDITIONAL CIVIL JUDGE AND JMFC,
AT BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1096/2015.
IN CRL.P. NO. 100984 OF 2024:
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
-7-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.134/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDL. CIVIL JUDGE AND JMFC, AT
BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1099/2015.
IN CRL.P. NO. 100985 OF 2024:
BETWEEN:
-8-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
-9-
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.135/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDL. CIVIL JUDGE AND JMFC, AT
BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1101/2015.
IN CRL. P. NO. 100986 OF 2024:
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
- 10 -
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063,
(MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
- 11 -
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.132/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDL. CIVIL JUDGE AND JMFC, AT
BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1097/2015.
IN CRL.P. NO. 100987 OF 2024:
BETWEEN:
AGARWAL COAL CORPORATION PVT. LTD.,
A COMPANY INCORPORATED UNDER THE
PROVISIONS OF COMPANIES ACT, 1956,
HAVING ITS OFFICE AT GROUND FLOOR,
PLOT NO.9, OFFICE NO.1,
SAI LAXMI NARASIMHA SWAMY NILAYAM,
INFERTY ROAD, INNA REDDY COLONY,
CANTONMENT, BALLARI-583 104,
R/BY ITS AUTHORIZED SIGNATORY,
SHRI NIRANJAN O/O INNA REDDY COLONY,
CANTONMENT, BALLARI,
TQ. AND DIST. BALLARI-583 001.
... PETITIONER
(BY SRI. SHIVRAJ S. BALLOLI, ADVOCATE)
AND:
1. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS DIRECTOR,
HAVING REGISTERED OFFICE AT BHUVAKA CENTER,
NO.71, 3RD CROSS, RESIDENCY ROAD,
BENGALURU-560 025.
2. M/S. BENAKA SPONGE IRON PVT. LTD.,
R/BY ITS AUTHORIZED SIGNATORY,
HAVING ITS FACTORY PREMISES
AT SY. NO.139-A/1,
TUMATI ROAD, BELLAGAL VILLAGE,
TQ. AND DIST. BALLARI.
- 12 -
NC: 2025:KHC-D:10470
CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
3. SHRI AJAY KUMAR BHUWALKA,
AGE. MAJOR, OCC. MANAGING DIRECTOR,
R/O. #2996, 5TH CROSS, NEAR INDIRA NAGAR,
BENGALURU NORTH, BENGALURU-560 038.
4. SHRI ANKIT BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. FLAT NO.A-805, 8TH FLOOR,
OBERAI WOODS, MOHAN GOKHLE ROAD,
GOREGAON EAST, MUMBAI-400 063, (MAHARASHTRA).
5. SHRI SURESH KUMAR BHUWALKA,
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.2996, 12TH A MAIN,
5TH CROSS, HAL II STAGE,
INDIRA NAGAR, BENGALURU-560 038.
6. SHRI ROOPSING NOORSING CHAWHAN
AGE. MAJOR, OCC. DIRECTOR,
R/O. NO.453, 4TH MAIN, 6TH CROSS,
J.P. NAGAR, 3RD PHASE,
BENGALURU-560 078.
... RESPONDENTS
(BY SRI. A. VEERANNA, ADVOCATE FOR R3;
SMT. RANJITA ALAGAWADI, ADVOCATE FOR
SRI. GANGADHAR J.M. ADVOCATE FOR R6;
R1 AND R2-SERVED;
R4-NOTICE DISPENSED WITH;
R5-ABATED)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C., PRAYING TO QUASH THE IMPUGNED ORDER DATED
30.10.2023 PASSED BY LEARNED II ADDITIONAL DISTRICT AND
SESSIONS JUDGE, AT BALLARI IN CRL.R.P. NO.136/2022 AND
CONSEQUENTLY QUASH THE IMPUGNED ORDER DATED 29.07.2021
PASSED BY THE LEARNED V ADDL. CIVIL JUDGE AND JMFC, AT
BALLARI ON INTERLOCUTORY APPLICATION FILED BY THE
PETITIONER UNDER SECTION 141 OF N.I. ACT IN CC NO.1100/2015.
THESE PETITIONS ARE COMING ON FOR ADMISSION THIS
DAY, ORDER IS MADE THEREIN AS UNDER:
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CRL.P. No.100988 of 2024
C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
COMMON ORDER
(PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY)
1. Above captioned seven petitions arise between the
same parties and therefore they are heard together with the
consent of the learned counsel appearing for the parties and
disposed of by this common order.
2. Heard the learned counsel appearing for the parties.
3. The petitioner company had initiated seven
separate proceedings before the Court of V Addl. Civil Judge &
JMFC, Ballari against accused Nos.1 and 2 companies for the
offence punishable under Section 138 of N.I. Act. The allegation
against the accused companies is that cheques issued by the
said companies towards repayment of the amount due by the
companies to the petitioner company for supply of coal were
dishonoured and in spite of statutory notices issued to accused
Nos.1 and 2 companies, amount covered under cheques in
question was not repaid and therefore seven separate criminal
cases were filed against accused Nos.1 and 2 companies for the
offence punishable under Section 138 of N.I. Act. In the said
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C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
seven criminal cases registered before the Court of Magistrate
in C.C.No.1098/2015, C.C.No.1096/2015, C.C.No.1099/2015,
C.C.No.1101/2015, C.C.No.1097/2015, C.C.No.1100/2015,
C.C.No.1095/2015 separate applications were filed under
Section 141 of N.I. Act by the petitioner company with a prayer
to implead respondent Nos.3 to 6 as parties to the criminal
proceedings initiated against accused Nos.1 and 2 companies.
The said applications were opposed by the propose respondents
by filing objections and the trial Court vide the order impugned
dated 29.07.2021 dismissed the applications, which were
unsuccessfully challenged in Criminal Revision Petition
No.130/2022, Criminal Revision Petition No.131/2022, Criminal
Revision Petition No.132/2022, Criminal Revision Petition
No.133/2022, Criminal Revision Petition No.134/2022, Criminal
Revision Petition No.135/2022 and Criminal Revision Petition
No.136/2022 before the Court of II Addl. District and Sessions
Judge, Ballari. It is under these circumstances, the above
captioned seven criminal petitions are filed before this Court.
4. Learned counsel for the petitioner submits that
respondent No.3 is the authorized signatory of the companies
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and he is the sole signatory to the cheques in question, which
were dishonoured by the drawee bank. Therefore, relief sought
for in the applications filed under Section 141 of N.I. Act would
be restricted by the petitioner only as against respondent No.3.
Insofar as other respondents who are the directors of the
companies are concerned petitions are not pressed as against
them.
5. Per contra, learned counsel appearing for
respondent No.3 submits that, no separate notice was issued to
respondent No.3 and therefore he cannot be prosecuted for the
alleged offence. Respondent No.3 is not the drawee of the
cheque in question and he has signed the cheques only as
authorized signatory of the companies. The companies are
already arrayed as accused in the criminal proceedings and
therefore presence of respondent No.3 is not necessary.
Accordingly, he prays to dismiss the petitions as against
respondent No.3.
6. It is not in dispute that respondent No.3, is the sole
signatory to the cheques in question, which were issued on
behalf of accused Nos.1 and 2 companies in favour of the
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C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
petitioner. Primary liability under Section 138 of N.I. Act is on
the drawer, who must ensure maintaining adequate funds in
the bank account on which the cheques in question are drawn
at the time the cheques are presented.
7. Section 141 of the N.I. Act provides for criminal
liability for dishonour of cheque committed by company. In the
case of K.K.AHUJA AND V.K.VORA AND ANOTHER -
(2009) 10 SCC 48, the Hon'ble Supreme Court after referring
to the judgment of SMS PHARMACEUTICALS V. NEETA
BHALLA & ANR - 2005 (8) SCC 89 has observed that
signatory of a cheque which is dishonoured is clearly
responsible for the act and his liability is covered under Section
141(2) of N.I. Act. Therefore, no specific averments would be
necessary to make him liable to be prosecuted for offence
under Section 138 of N.I. Act. Similarly Managing Director and
Deputy Managing Director by virtue of their office which they
holding would come under Section 141(1) of N.I. Act even if
there is no specific averments against them. Insofar as the
other directors are concerned there has to be specific
averments as against them in the complaint with regard to
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C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
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their role and responsibility in the conduct of business of the
company and in the absence of such allegation or averments
the other directors cannot be prosecuted for the alleged
offences. In the case on hand, learned counsel for the
petitioner has fairly submitted that insofar as respondent Nos.4
to 6 are concerned, who are the other directors, the petitions
are not being pressed. Insofar as respondent No.3 is
concerned, who is the sole signatory of the cheques in question
even in the absence of any specific allegations or averments
against him in the complaint he is liable to be prosecuted.
8. Perusal of the cause title of the complaint filed
before the trial Court would go to show that, accused No.1
company is represented by its director, whereas accused No.2
company is represented by its authorized signatory, who is
none other than respondent No.3 herein. Under these
circumstances, I am of the opinion that, the learned Magistrate
was not justified in dismissing applications in its entirety.
9. Accordingly, the following:-
ORDER
Criminal petitions are partly allowed.
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C/W CRL.P Nos.100981, 100982, 100984
100985, 100986, and 100987 of 2024
HC-KAR
The impugned order dated 29.07.2021 passed
by the Court of V Addl. Civil Judge and JMFC, Ballari
in C.C. Nos.1098, 1096, 1099, 1101, 1097, 1100 and
1095 of 2015, which is confirmed by the jurisdictional
Sessions Court in Criminal Revision Petition Nos.130,
133, 134, 135, 132, 136 and 131 of 2022 are set
aside insofar as it relates to rejection of application to
the extent it relates to the prayer of the petitioner
insofar as it relates to respondent No.3 who is the
authorized signatory of the cheques in question is
concerned and the petitioner is permitted to implead
respondent No.3 in these petitions as party before the
trial Court in the aforesaid cases.
Sd/-
(S.VISHWAJITH SHETTY)
JUDGE
NMS CT:BCK
