Citation : 2025 Latest Caselaw 5775 Kant
Judgement Date : 19 August, 2025
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NC: 2025:KHC-D:10471
CRL.P No. 103095 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. 103095 OF 2024
(482(CR.PC)/528(BNSS))
BETWEEN:
1. DR. SHANKARLING S/O NARAYANAPPA GOUDAR,
AGE. 49 YEARS, OCC. PRESIDENT OF EDUCATION
SOCIETY, SHREE GURUKOLLINATHESHWAR EDUCATION
AND RURAL DEVELOPMENT SOCIETY KERUR
(PRESIDENT),
R/O. NEAR M.R. HIREMATH HIGH SCHOOL, KERUR,
TQ: BADAMI, DIST. BAGALKOT-587 206.
2. SMT. SHAKUNTALA W/O SHANKARLING GOUDAR,
AGE. 45 YEARS, OCC. SECRETARY,
R/O. NEAR M.R. HIREMATH HIGH SCHOOL, KERUR,
TQ. BADAMI, DIST. BAGALKOT-587 206.
... PETITIONERS
(BY SRI. PAVAN B. DODDATTI, ADVOCATE)
AND:
SHREE SHIVASHAKTI SOUHARDA PATTEN
SAHAKARI LTD., BAGALKOT, BRANCH KERUR,
TALUK BADAMI, DIST. BAGALKOT, R/BY ITS MANAGER,
Digitally signed
SHIR SHANKRAPPA RAMANNA KATAGERI,
by RAKESH S
RAKESH HARIHAR
Location: HIGH
AGE. 46 YEARS, OCC. MANAGER,
S COURT OF
HARIHAR KARNATAKA
DHARWAD
R/O. KERUR, TQ. BADAMI,
BENCH
DIST. BAGALKOT-587 206.
... RESPONDENT
(BY SRI. JAGADISH PATIL, ADVOCATE)
THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF
CR.P.C. (UNDER SECTION 528 OF BNSS), PRAYING TO QUASH THE
ENTIRE CRIMINAL PROCEEDINGS PENDING BEFORE THE COURT OF
ADDL. CIVIL JUDGE AND JMFC, BADAMI, SITTING ITINERARY COURT
AT KERUR, IN C.C. NO.281/2019 REGISTERED FOR OFFENCE
PUNISHABLE UNDER SECTION 138 OF N.I. ACT, IN SO FAR AS
PETITIONERS/ACCUSED NO.1 AND 2 ARE CONCERNED, IN THE
INTEREST OF JUSTICE AND EQUITY.
THIS PETITION, COMING ON FOR FURTHER HEARING THIS
DAY, ORDER IS MADE THEREIN AS UNDER:
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NC: 2025:KHC-D:10471
CRL.P No. 103095 of 2024
HC-KAR
ORAL ORDER
(PER: THE HON'BLE MR. JUSTICE S.VISHWAJITH SHETTY)
Accused Nos.1 and 2 are before this Court in this
petition filed under Section 482 of Cr.P.C., with a prayer to
quash the entire proceedings in C.C. No.281/2019 pending
before the Court of Additional Civil Judge and JMFC,
Badami sitting at Kerur, registered for offence punishable
under Section 138 of the Negotiable Instruments Act (N.I.
Act).
2. Heard the learned counsel for the parties.
3. The respondent herein had filed a private
complaint in PCR No.10/2017 before the Court of Principal
Civil Judge and JMFC, Badami, against petitioners and
seven others for offence punishable under Section 138 of
N.I. Act. After the learned Magistrate had taken
cognizance of the alleged offence, case was registered
against petitioners and other accused in C.C. No.281/2019
and being aggrieved by the same, petitioners, who are
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HC-KAR
arrayed as accused Nos.1 and 2 in C.C. No.281/2019 are
before this Court.
4. Learned counsel for the petitioners submits that
petitioners herein are the President and Secretary of the
Education Society known as Shree Gurukallinatheshwar
Education and Rural Development Society, Kerur. The
cheque in question is drawn on the bank account of the
aforesaid society. In the absence of arraying the society as
a party to the impugned criminal proceedings, the
petitioners who are the office bearers of the society cannot
be prosecuted.
5. Per contra, learned counsel appearing for the
respondent, who has opposed the petition, however, does
not dispute that the cheque in question has been drawn on
the bank account which stands in the name of the society.
6. The drawer of the cheuqe is an association
registered under the provisions of the Karnataka Societies
Registration Act, 1960 and it has a governing body elected
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HC-KAR
amongst its members. Company for the purpose of Section
141 of N.I. Act includes an association of individuals.
Therefore, the drawer of the cheque which is an Education
Society can be safely considered as Company for the
purpose of Section 141 of N.I. Act. It is not in dispute that
the petitioners herein are the office bearers of the
Education Society from whose account the cheque is
issued. The said cheque has been dishonoured for
insufficient funds in the bank account of the Education
Society. The proceedings initiated without making the said
society as a party to the proceedings cannot be
maintained in view of the judgment of the Hon'ble
Supreme Court in the case of Himanshu vs. B.
Shivamurthy and another1 and in the case of Aneeta
Hada vs. Godfather Travels and Tours Private
Limited2. The petitioners are being held vicariously liable
for the act of the society and therefore, in the absence of
the society being made party to the impugned
(2019) 3 SCC 797
(2012) 5 SCC 661
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HC-KAR
proceedings, the proceedings cannot be permitted to be
continued as against the petitioners. Accordingly, the
following:
ORDER
Criminal Petition is allowed.
The entire proceedings in C.C. No.281/2019 pending
before the Court of Additional Civil Judge and JMFC,
Badami sitting at Kerur, registered for offence punishable
under Section 138 of the Negotiable Instruments Act
against the petitioners is hereby quashed.
Sd/-
(S.VISHWAJITH SHETTY) JUDGE
RSH / CT:BCK
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