H. VASU Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Accused 1 to 7 and 9 to 12 in Crime No.175/2011 registered with Krishna Raja Police, Mysore and subsequently converted in to CC.No.842/2013 on the file of Judicial Magistrate First Class (III), Mysore, have come up in this petition seeking quashing of aforesaid crime number as well as CC.842/2013 which is registered for offences punishable under Sections 420, 465, 468, 474 r/w 34 of IPC.

(2.) It is not in dispute that the matter is referred to investigation and subsequently, charge sheet is filed for an offence punishable under Section 420 r/w 34 of IPC, which is challenged by accused 1 to 7 and 9 to 12. So far as accused No.8 is concerned, it is stated that he died subsequently. This petition is filed on the ground that, prior sanction is required under Section 111(2) of the Karnataka Cooperative Societies Act, 1959, more particularly, with reference to the proviso which necessitates for sanction of the Registrar or Director of Cooperative Audit. Said Section is culled out hereunder for the sake of convenience.

(3.) On going through the aforesaid provision of law, it is clearly seen that, in the event of any offence alleged against any of the Directors or Officers of the society, if it is with reference to alleged misappropriation or embezzlement of funds of the society or if it is in the matter relating to audit in respect of the cooperative credit structure of the society and other matters, then sanction is required. In the present case, the offence alleged is with reference to appointment of accused Nos.11 and 22 in the aforesaid proceeding to the society without following the procedure that was required to be followed for the appointment of said persons. The offence alleged basically is an offence punishable under the provisions of India Penal Code and not an offence the cognizance of which cane be taken under the Karnataka Cooperative Societies Act, 1959 as envisaged in the aforesaid Section. In that view of the matter, this Court is of the opinion that this petition filed seeking quashing of proceeding pending in CC.No.842/2013 is misconception and the same cannot be entertained in this proceeding.