K. VIRUPAKSHA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Heard the arguments of the petitioners' counsel, HCGP for respondent No.1 and also the counsel for respondent No.2.

(2.) This petition is filed by the petitioners invoking section 482 of Cr.P.C., for quashing of the order dated 20.5.2016, passed by the Principal Civil Judge and JMFC, Hubballi, in P.C.No.389/2016, referring the matter for investigation and consequently registration of FIR in Crime No.152/2016 by the Hubballi Sub-Urban Police station for the offence punishable under sections 511, 109, 34, 120-B, 406, 409, 420, 405, 417, 426 of IPC, insofar as to the present petitioners are concerned and to pass such other order as deemed fit in the circumstances of the case.

(3.) The factual matrix of the case is that, the petitioners No.1 and 2 were working at Canara Bank Circle Office, Hubballi, as Deputy Managers. It is contended that the 2 n d respondent herein had approached the Canara Bank in the year 2009 for cash credit facility up to Rs.1,00,00,000/- for its working capital requirement and term loans and for security of the said loan, the 2 n d respondent offered to create mortgage of its property situated at Anchatageri village. The Canara Bank considering the request of the 2 n d respondent had sanctioned cash credit loan of Rs.1,00,00,000/-, term loan of Rs.88,00,000/-, another term loan of Rs.14,00,000/- and another term loan of Rs.66,00,000/-. The 2nd respondent for availing cash credit loan had executed common hypothecation agreement on 16.3.2009 and agreed to repay the cash credit loan on demand being made by the petitioner with interest at 13.75% p.a. with compound interest and subject to changes made by the bank from time to time. Further the cash credit loan has been revived from time to time by the 2 n d respondent and the 2 n d respondent failed to repay the outstanding dues in spite of the demand made on 16.1.2013.