Case Note & Summary
The petitioners, Ramchandra Krishna Nayari and Gururaj Deshpande, were bank officials working as Senior Manager and Retired Chief Manager respectively at Pragati Krishna Grameen Bank and Karnataka Grameen Bank. They filed a petition under Section 482 Cr.P.C. seeking quashing of criminal proceedings in C.C.No.24172/2021 arising from Crime No.110/2018 registered at Netaji Nagar Police Station, Raichur, for offences under Sections 420, 409, and 120B of IPC. The defacto complainant, Shridhar R. Banare, alleged that the petitioners had cheated him and committed criminal breach of trust in relation to a loan transaction. The High Court of Karnataka at Kalaburagi Bench heard the matter and examined the material on record. The court noted that the dispute was essentially civil in nature, arising from a loan agreement, and there was no evidence of dishonest intention from the inception of the transaction. The court observed that the complaint was filed with malafide intentions to harass the petitioners, who were acting in their official capacity. The court held that the criminal proceedings were an abuse of process of law and quashed the taking of cognizance dated 01.10.2021 and all subsequent proceedings.
Headnote
A) Criminal Procedure Code - Quashing of FIR - Section 482 Cr.P.C. - Abuse of process of court - The court examined whether the criminal complaint against bank officials for cheating and criminal breach of trust disclosed any prima facie offence. Held that the dispute was essentially civil in nature and the complaint was filed with malafide intentions to harass the petitioners. (Paras 2-10) B) Indian Penal Code - Cheating - Section 420 IPC - Dishonest intention from inception - The court held that for an offence under Section 420 IPC, there must be dishonest intention at the time of making the promise. Mere failure to repay loan does not attract the offence. (Paras 5-8) C) Indian Penal Code - Criminal Breach of Trust - Section 409 IPC - Entrustment and misappropriation - The court found no evidence of entrustment of property or misappropriation by the petitioners, who were bank officials acting in official capacity. (Paras 5-8) D) Indian Penal Code - Criminal Conspiracy - Section 120B IPC - No meeting of minds - The court held that there was no material to show any conspiracy between the petitioners to commit any offence. (Paras 5-8)
Issue of Consideration
Whether the criminal proceedings against the petitioners for offences under Sections 420, 409, 120B of IPC should be quashed under Section 482 Cr.P.C. for want of prima facie case and due to malicious prosecution.
Final Decision
The petition is allowed. The taking of cognizance dated 01.10.2021 in C.C.No.24172/2021 (Crime No.110/2018) pending before the Additional Civil Judge & JMFC-III Court at Raichur is quashed.
Law Points
- Quashing of criminal proceedings under Section 482 Cr.P.C.
- Lack of prima facie case for cheating and criminal breach of trust
- Malicious prosecution
- Civil dispute not to be criminalized
