Legal Document View

Unlock Advanced Research with PRISMAI

- Know your Kanoon - Doc Gen Hub - Counter Argument - Case Predict AI - Talk with IK Doc - ...
Upgrade to Premium
[Cites 6, Cited by 0]

Karnataka High Court

C. N. Mohan vs Manish B. Gajria on 12 February, 2026

Author: M.Nagaprasanna

Bench: M.Nagaprasanna

                                          -1-
                                                        NC: 2026:KHC:9101
                                                   CRL.P No. 3027 of 2025
                                                C/W CRL.P No. 865 of 2025

                HC-KAR



                  IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                    DATED THIS THE 12TH DAY OF FEBRUARY, 2026

                                         BEFORE
                     THE HON'BLE MR. JUSTICE M.NAGAPRASANNA
                 CRIMINAL PETITION NO. 3027 OF 2025 (482(Cr.PC) /
                                     528(BNSS)-)
                                          C/W
                         CRIMINAL PETITION NO. 865 OF 2025


                IN CRL.P No. 3027/2025

                BETWEEN:
                1. C. N. MOHAN
                   @CHANNAPATTANA
                   NAGARAJ MOHAN
                   SON OF LATE APPUSETTY NAGARAJU
                   AGED ABOUT 66 YEARS
                   RESIDING AT NO.328,
                   14TH CROSS,
Digitally          NEAR GANESHA TEMPLE,
signed by
SANJEEVINI J       SADASHIVANAGAR
KARISHETTY         BENGALURU - 560 080
Location:
High Court of
Karnataka
                                                            ...PETITIONER
                (BY SRI. MALLIKARJUNA T., ADVOCATE)

                AND:
                1. MANISH B. GAJRIA
                   S/O LATE BHARAT R. GAJARIA,
                   AGED ABOUT 46 YEARS
                   RESIDING AT NO.294,
                   SHANTINIKETAN APARTMENTS,
                            -2-
                                         NC: 2026:KHC:9101
                                    CRL.P No. 3027 of 2025
                                 C/W CRL.P No. 865 of 2025

HC-KAR



     39TH CROSS, 8TH BLOCK,
     JAYANAGAR,
     BANGALORE - 560 070
     REPRESENTED BY SPA HOLDER
     MR. RAMESH BABU


                                            ...RESPONDENT
(BY SRI. SHARAN L. JAIN, ADVOCATE)

      THIS CRL.P. IS FILED U/S 482 CR.PC (FILED U/S 528
BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING TO
QUASH/SET     SIDE   ALL   FURTHER      PROCEEDINGS     IN
CC.NO.38869/2022 PASSED BY THE HONBLE XXII ADDL. CHIEF
METROPOLITAN MAGISTRATE, BENGALURU AND ISSUANCE,
EXECUTING THE ORDER OF NON-BAILABLE WARRANT (NBW)
AND FINE LEVY WARRANT (FLW) DATED 02.12.2024 AND IN
FURTHERANCE A SUBSEQUENT ORDER OF REISSUING OF THE
SAME ON 15.01.2025 AS AGAINST THE PETITIONER VIDE
ANNEXURE-A.

IN CRL.P NO. 865/2025

BETWEEN:

1.   MR MANISH B GAJARIA
     AGED ABOUT 46 YEARS,
     S/O LATE BHARAT R GAJARIA,
     R/A NO. 294,
     SHANTHINIKETAN APARTMENTS,
     39TH CROSS, 8TH BLOCK,
     JAYANAGAR,
     BANGALORE 560070.
     REPRESENTED BY GPA HOLDER,
                             -3-
                                          NC: 2026:KHC:9101
                                     CRL.P No. 3027 of 2025
                                  C/W CRL.P No. 865 of 2025

HC-KAR



     MR. RAMESH BABU C H,
     AGED ABOUT 38 YEARS,
     S/O VEERABRAHMAM,
     HAVING OFFICE AT NO. 103-104,
     SHANTHINIKETAN APARTMENTS,
     39TH CROSS, 8TH BLOCK,
     JAYANAGAR
     BANGALORE - 560070
                                          ...PETITIONER

(BY SRI. SHARAN L. JAIN, ADVOCATE)

AND:

1.   MR. C N MOHAN
     AGED ABOUT 52 YEARS,
     S/O LATE NAGARAJU,
     R/A NO. 328,
     14TH MAIN ROAD,
     SADASHIVANAGAR,
     BANGALORE - 560080
                                         ...RESPONDENT

(BY SRI. MALLIKARJUNA T., ADVOCATE)

    THIS CRL.P. IS FILED U/S 482 CR.PC (FILED U/S 528
BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING
TO a. QUASH THE APPEAL PROCEEDINGS FILED BY THE
RESPONDENT PENDING REGISTERED AS CRIMINAL APPEAL
NO.2057/2024 PENDING ON THE FILE OF LXVI ADDL. CITY
CIVIL AND SESSIONS JUDGE, BANGALORE, THE ENTIRE
ORDER SHEET IS ANNEXED AT ANNEXURE A. AND ETC.


       THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY,

ORDER WAS MADE THEREIN AS UNDER:
                               -4-
                                              NC: 2026:KHC:9101
                                       CRL.P No. 3027 of 2025
                                    C/W CRL.P No. 865 of 2025

HC-KAR



CORAM:    HON'BLE MR. JUSTICE M.NAGAPRASANNA


                        ORAL ORDER

In Crl.P.No.3027/2025:

Heard Sri. Mallikarjuna T., learned counsel appearing for the petitioner, Sri. Sharan L. Jain, learned counsel appearing for the respondent and have perused the material on record.

2. The petitioner is before this Court calling in question issuance of Non-Bailable Warrant and Fine Levy Warrant against the petitioner on 02.12.2024 for the breach of settlement not once, but twice. The petitioner is the accused, the respondent is the complainant. They two have a transaction and transaction leads the complainant to the concerned Court for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The concerned Court convicts the petitioner. The matter between the parties on an application filed under Order VII Rule 11 of the CPC is before this Court in CRP No.205/2021. Before the Co-ordinate Bench of this Court, a settlement is arrived at between the parties in CRP No.205/2021. The settlement reads as follows:

"7. The Petitioner No. 1 to 3 have issued the following cheques towards repayment of advance amount of -5- NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR Rs.2,30,00,000/ (Two Crore Thirty Lakhs Only) received from the 1st Respondent along with additional sum of Rs.1,70,00,000/ (One Crore Seventy Lakhs Only) agreed, in the following manner:
a. Cheque bearing No. 000679 dated 23.12.2021 for Rs.3,00,000/- (Rupees Three Lakhs Only) drawn on ICICI Bank, Vyalikaval Sadhashiv Nagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No. 2.
b. Cheque bearing No. 000913 dated 23.12.2021 for Rs.19,00,000/- (Rupees Nineteen Lakhs Only) drawn on ICICI Bank, Vyalikaval Sadhashiv Nagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.3.
c. Cheque bearing No. 112323 dated 23.12.2021 for Rs.3,00,000/- (Rupees Three Lakhs Only) drawn on Federal Bank, Devanahalli Branch, Bangalore Rural in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
d. Cheque bearing No. 000914 dated 23.01.2022 for Rs.75,00,000/- (Rupees Seventy Five Lakhs Only) drawn on ICICI Bank, Vyalikaval Sadhashiv Nagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
e. Cheque bearing No. 000131 dated 23.02.2022 for Rs.75,00,000/- (Rupees Seventy Five Lakhs Only) drawn on HDFC Bank, Sadashivnagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
f. Cheque bearing No. 000130 dated 23.03.2022 for Rs.75,00,000/- (Rupees Seventy Five Lakhs Only) drawn on HDFC Bank, Sadashivnagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
g. Cheque bearing No. 000132 dated 23.04.2022 for Rs.75,00,000/- (Rupees Seventy Five Lakhs Only) drawn on HDFC Bank, Sadashivnagar Branch, -6- NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
h. Cheque bearing No. 000133 dated 23.05.2022 for Rs.75,00,000/- (Rupees Seventy Five Lakhs Only) drawn on HDFC Bank, Sadashivnagar Branch, Bangalore in favour of Sri. Manish B. Gajria issued by Petitioner No.1.
8. The drawee of the cheque is entitled to present the cheque and encash the same on the respective date of the cheques.
9. The plaintiff or its directors or anyone claiming through or under them shall not have any right title interest or claim over the plaint schedule properties and they will not press the prayer made in the plaint.

The Receipt cum advance karar dated 06.05.2015 (Referred in Receipt) and the receipt under which the aforesaid Rs.2,30,00,000/- (Rupees Two Crores Thirty Lakhs Only) paid as stated above is treated as cancelled.

10. The Respondent No.1 will not press the suit against the Defendant No.4 (Respondent No.2) before the trial court hence suit against the Defendant No.4 may be dismissed as not pressed.

11. The parties pray that the suit may be decreed in terms of this compromise. The court fee paid by the plaintiff may be ordered to be refunded to the plaintiff."

3. It is seen from the plaint in O.S. No.126/2018 that the suit was filed for specific performance of a Receipt Cum Advance Karar dated 06.05.2015 and for perpetual injunction."

3. The settlement was issuance of cheques at intermittent intervals of amount that was indicated in the -7- NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR settlement placed before the Co-ordinate Bench of this Court. This was on 21.12.2021. The last two cheques of Rs.75.00 lakhs each is said to have been dishonoured when it was presented for realization. This leads the complainant to the concerned Court in C.C.No.38869/2022. Before the concerned Court, the accused is convicted, but on a joint memo, it is depicted to have been settled on certain conditions. The order of the concerned Court dated 20.12.2024 reads as follows:

"12. Point No.2 : It is the case of the complainant that, the complainant has advanced Rs.2,30,00,000/- as part of sale consideration to the accused and towards discharge of liability, the accused has issued cheques at Ex.P.3 & P4. But in this case, both parties have settled the matter and accused has agreed to pay the settled amount of of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) to the complainant as full and final settlement. As per the joint memo, the accused has agreed to pay the settled amount of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) to the complainant by way of cheques ie., 1) cheque bearing No.000165 dt:
25.1.2024 for Rs.25 Lakhs, 2) cheque bearing No.000166, dt:25.02.2024 for Rs.25 Lakhs, 3) cheque bearing No.000167, dt:15.03.2024 for Rs.10 Lakhs, 4) cheque bearing No.000169, dt:15.04.2024 for Rs.10 Lakhs, 5) cheque bearing No.000170, dt:15.05.2024 for Rs.10 Lakhs, 6) cheque bearing No.000171, dt: 15.06.2024 for Rs.10 Lakhs, 7) cheque bearing No.000172,dt: 15.07.2024 for Rs.10 Lakhs, 8) cheque bearing No. 000173, dt: 15.08.2024 for Rs.50 Lakhs, all the cheques were drawn on HDFC Bank, Sadashivanagar Branch, Bangalore in favour of complainant. Hence, I am of the view that, imposing fine to the extent of cheque amount as mentioned in the joint memo and in default imprisonment of one year will be a proper sentence.
-8-

NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR Hence in view of joint memo filed by both the parties, I proceed to pass the following:

ORDER Acting under Section 255(2) of Cr.P.C. the accused is convicted for the offence punishable under Section 138 of the Negotiable Instruments Act.
Further the Accused is sentenced to pay a fine amount of settled amount of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) to the complainant as full and final settlement.
As per the Joint memo, the accused shall pay settled amount of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) to the complainant by way of cheques ie., 1) cheque bearing No.000165 dt:
25.1.2024 for Rs.25 Lakhs, 2) cheque bearing No.000166, dt:25.2.2024 for Rs.25 Lakhs, 3) cheque bearing No.000167, dt:15.03.2024 for Rs.10 Lakhs, 4) cheque bearing No.000169, dt:15.04.2024 for Rs.10 Lakhs, 5) cheque bearing No.000170, dt:15.05.2024 for Rs.10 Lakhs, 6) cheque bearing No.000171, dt: 15.06.2024 for Rs.10 Lakhs, 7) cheque bearing No.000172, dt: 15.07.2024 for Rs.10 Lakhs, 8) cheque bearing No. 000173, dt: 15.08.2024 for Rs.50 Lakhs, all the cheques were drawn on HDFC Bank, Sadashivanagar Branch, Bangalore.

In default of the encashment, the accused shall undergo simple imprisonment for a period of One year.

The amount of Rs.1,50,00,000/- (Rupees One Crore Fifty Lakhs only) shall be given to the complainant as compensation under section 357(1) of Cr.P.C.

The Joint Memo submitted by both the parties shall be read as part and parcel of this order. Bail bond of the accused stand cancelled." -9-

NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR

4. The said settlement is also breached by the petitioner. Rs.1.5 crores which was to be paid is not paid even as on date. Though the order was passed on 20.01.2024, we are in February, 2026. The amount of Rs.1.5 crores is still hanging to be paid to the complainant. The settlement initially was arrived at 21.12.2021 close to 4 1/2 years ago. The said settlement is breached, this is the first breach of settlement. The second breach of settlement happens on an order dated 20.01.2024. Today, learned counsel holding a memo that he would pay the amount at intermittent intervals owing to certain medical ailments to his wife. Since 5 years have passed by the settlement before the Co-ordinate Bench. Two years have passed by before the order of the concerned Court, no indulgence can be shown to the litigant, who breaches the settlement arrived at before the Co-ordinate Bench or that Court not once but twice.

5. In that light, there is no warrant of interference, the petition stands rejected.

- 10 -

NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR In Crl.P.No.865/2025:

Heard Sri. Sharan L. Jain, learned counsel appearing for the petitioner, Sri. Mallikarjuna T., learned counsel appearing for the respondent and have perused the material on record.
2. The petitioner is before this Court calling in question the proceedings before the Appellate Court in Crl.A.No.2057/2024, which is filed challenging an order of conviction by the respondent, who gets convicted for an offence punishable under Section 138 of the Negotiable Instruments Act, 1881.
3. The challenge to the proceedings in an appeal cannot be entertained under Section 482 of the Cr.P.C.

However, the only order that can be passed is that the concerned Court shall answer the appeal and conclude the proceedings in the light of the reasons rendered in the companion petition within an outer limit of three (3) months from the date of receipt of a copy of this order.

- 11 -

NC: 2026:KHC:9101 CRL.P No. 3027 of 2025 C/W CRL.P No. 865 of 2025 HC-KAR

4. With the aforesaid observations, the petition stands disposed.

Ordered accordingly.

Sd/-

(M.NAGAPRASANNA) JUDGE SJK List No.: 1 Sl No.: 1