SHIVARAMAKRISHNA M vs M/S.ECOCHEM
- Court
- Karnataka High Court
- 1 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 30 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
CRIMINAL PETITION NO. 10614 OF 2026
C/W
CRIMINAL PETITION NO. 10517 OF 2026
IN CRL.P No. 10614/2026
BETWEEN:
SHIVARAMAKRISHNA M
S/O. ESHWARIAH MOLLAGUDAM
AGED ABOUT 45 YEARS,
R/AT D.NO.8-2-332,
PLOT NO.202, 2ND FLOOR,
ROAD NO.3, BANJARA HILLS
KHAIRATABAD, HYDERABAD,
TELANGANA -500081.
SOLE PROPRIETOR
M/S FLYCHEM INDIA,
PL.NO.97, 4TH FLOOR,
DIVYASREE APARTMENT,
GAFOOR NAGAR, MADHAPUR,
HYDERRABAD - 500081.
…PETITIONER
(BY SRI. SACHIN B S.,ADVOCATE)
AND:
M/S.ECOCHEM
A PROPRIETORSHIP FIRM,
R/O. NO.25 AND 26/160,
BYRAVESWARA INDUSTRIAL ESTATE,
ANDRAHALLI MAIN ROAD,
ND
NEAR PEENYA 2 STAGE,
Digitally Signed by ANANT
RAMNATH HEGDE
- 2 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
BENGALURU - 560091.
REP BY ITS SOLE PROPRIETOR,
MAKAM CHANDRAPRAKSH
S/O. LATE MAKAN SUNDAR RAJ SHETTY,
AGED ABOUT 67 YEARS,
R/O. NO.25 AND 26/160,
BYRAVESWARA INDUSTRIAL ESTATE,
ANDRAHALLI MAIN ROAD,
NEAR PEENYA 2ND STAGE,
BENGALURU - 560091.
…RESPONDENT
(BY SRI. VISHNU PALASAMUDRAM VENKATESH.,ADVOCATE)
THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528
BNNS) BY THE ADVOCATE FOR THE PETITIONER PRAYING
THAT THIS HONOURABLE COURT MAY BE PLEASED TO QUASH
THE ENTIRE PROCEEDINGS IN CC.NO.21939/2026 PENDING
ON THE FILE OF XVI ADDITIONAL CJM, BENGALURU INITIATED
BY THE RESPONDENT / COMPLAINANT FOR THE OFFENCE U/S
138 OF NEGOTIABLE INSTRUMENT ACT, 1881 AGAINST THE
PETITIONER, AS PER DOCUMENT NO.1 .
IN CRL.P NO. 10517/2026
BETWEEN:
SHIVARMAKRISHNA M @ MOOLAGUDAM
SIVARAMAKRISHNA PRASAD
S/O. ESHWARIAH MOLLAGUDAM
AGED ABOUT 45 YEARS,
R/AT D.NO.8-2-332,
PLOT NO.202, 2ND FLOOR,
ROAD NO.3, BANJARA HILLS
KHAIRATABAD, HYDERABAD, TELANGANA -500081
...PETITIONER
Digitally Signed by ANANT
RAMNATH HEGDE
- 3 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
(BY SRI. SACHIN B S., ADVOCATE)
AND:
M/S.ECOCHEM
A PROPRIETORSHIP FIRM,
R/O. NO.25 AND 26/160,
BYRAVESWARA INDUSTRIAL ESTATE,
ANDRAHALLI MAIN ROAD,
ND
NEAR PEENYA 2 STAGE,
BENGALURU - 560091.
REP BY ITS SOLE PROPRIETOR,
MAKAM CHANDRAPRAKSH
S/O. LATE SUNDAR RAJ SHETTY,
AGED ABOUT 67 YEARS,
R/O. NO.25 AND 26/160,
BYRAVESWARA INDUSTRIAL ESTATE,
ANDRAHALLI MAIN ROAD,
NEAR PEENYA 2ND STAGE,
BENGALURU - 560091.
...RESPONDENT
(BY SRI. VISHNU PALASAMUDRAM
VENKATESH.,ADVOCATE)
THIS CRL.P IS FILED U/S.482(FILED U/S.528 BNSS)
CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING
THAT THIS HONOURABLE COURT MAY BE PLEASED TO
QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.21937/2026
PENDING ON THE FILE OF THE XVI ADDL CJM BENGLAURU
INITIATED BY THE RESPONDENT / COMPLIANANT FOR THE
OFFENCE P/US 138 OF NI ACT 1881 AGAINST THE
PETITIONER AS PER DOCUMENTS NO.1.
Digitally Signed by ANANT
RAMNATH HEGDE
- 4 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
THESE PETITIONS, COMING ON FOR ADMISSION, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
ORAL ORDER
Heard the learned counsel appearing for the petitioner
and the learned counsel appearing for the respondent.
2. This petition is filed to quash the proceedings in
C.C.No.21939/2026 pending before the XVI Additional Chief
Judicial Magistrate, Bengaluru. The offences alleged are
under Section 138 of the Negotiable Instruments Act, 1881
('NI Act').
3. The basic requirements of Section 138 of the NI
Act, are met. There is no dispute on this aspect. There is no
dispute that the signature on the cheque is that of the
petitioner. There is no dispute that the cheque is pertaining
to the account of the petitioner. Admittedly, there was a
business transaction between the petitioner and the
complainant.
Digitally Signed by ANANT
RAMNATH HEGDE
- 5 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
4. Learned counsel for the petitioner would submit
that the cheques have been issued as a security for the
business transaction and the 3 invoices which are referred to
in the complaint refer to the transactions between the
petitioner and the respondent and the payment is already
made through to NEFT transaction in respect of
aforementioned three invoices.
5. Learned counsel for the petitioner would submit
that petitioner has supporting bank statements as well as the
ledger extract to substantiate the contention. Thus, it is
urged that the complaint is not tenable as there was no
legally enforceable debt as on the date of representation of
the complaint.
6. Learned counsel for the respondent would submit
that since 2018, the petitioner and respondent are
transacting and the respondent is the supplier of the goods
to the petitioner and the petitioner has been making
payment intermittently. There are multiple transactions
between the petitioner and the respondent and the payment
Digitally Signed by ANANT
RAMNATH HEGDE
- 6 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
which the petitioner is referring to is not in respect of the 3
invoices referred to in the complaint. The amount payable
under the said 3 invoices are still unpaid. The contention that
the petitioner has maintained a ledger in respect of the
payment made has to be tested and tried in a trial.
7. It is the further submission that it is not the case
of the petitioner that there are only three transactions.
Admittedly, there are multiple transactions. Thus, the
petitioner's contention that he has made payment and
nothing is due cannot be accepted.
8. It is further submitted that it is required to be
considered at the time of trial as to how many transactions
were carried out between the petitioner and the respondent
and payment is made for which of the transactions.
9. It is also the submission that under Section 139
of NI Act, there is a presumption in favour of the
complainant as to the legally enforceable debt and the
Digitally Signed by ANANT
RAMNATH HEGDE
- 7 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
petition cannot be allowed and the proceeding before the
Trial Court cannot be quashed at this stage.
10. The Court has considered the contentions raised
at the Bar and perused the records.
11. Section 139 of the Negotiable Instruments Act,
1881 reads as under:
"139. Presumption in favour of holder.—
It shall be presumed, unless the contrary is proved,
that the holder of a cheque received the cheque of the
nature referred to in Section 138 for the discharge, in
whole or in part, of any debt or other liability."
12. From the bare perusal of the said provision, it is
apparent that there is a presumption in favour of the
complainant as to the legally enforceable debt in favour of
the complainant and the cheque has been issued in
discharge such legally enforceable debt.
13. Though the learned counsel the petitioner would
submit that he has maintained the ledger which would
Digitally Signed by ANANT
RAMNATH HEGDE
- 8 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
establish that the payment is made in respect of the 3
invoices referred to in the complaint, said ledger is disputed
by the respondent. Hence, the ledger has to be proved at the
time of trial.
14. The contentions raised in this petition are to be
considered only after the evidence to be led during the trial.
15. Under the circumstances, the Criminal Petition is
dismissed
. All contentions are kept open.
16. Observations made above are only tentative
observations, not on the merits of the matter.
Crl.P.No.10517/2026
Crl.P.No.10517/2026 is filed in respect of the amount
which is the interest component of the amount referred to in
the cheque which is a subject matter of Criminal Petition
No.10614/2026. Since the Crl.P.No.10614/2026 is dismissed,
the present petition is also not maintainable.
Digitally Signed by ANANT
RAMNATH HEGDE
- 9 -
HC-KAR
NC: 2026:KHC:60539
CRL.P No. 10614 of 2026
C/W CRL.P No. 10517 of 2026
CNR: KAHC010484042026
2. Hence, the Criminal Petition is dismissed.
However, the observations made in the said order are not
the observations on the reflection of the merit in the present
case.
3. In case the complainant succeeds in
C.C.No.21939/2026, then the second complaint in respect of
the cheque which is allegedly issued towards interest
payable in respect of the cheque amount referred to in
C.C.No.21939/2026 has to be considered on its merits.
4. In case, C.C.No.21939/2026 is dismissed, then
the complaint in CC.No.21937/2026 has to be dismissed.
Digitally Signed by ANANT
RAMNATH HEGDE
(ANANT RAMANATH HEGDE)
JUDGE
GVP
List No.: 2 Sl No.: 27