Private Party Affected By Registered Gift Deed Based On False Docs Can Institute Case For Cheating & Forgery, No Embargo U/S 195 CrPC: Karnataka HC

A single judge bench of Justice Suraj Govindaraj clarified that the embargo under Section 195 CrPC read with Section 177 IPC would not be attracted to (affected) private individuals.

The Court negated the argument of Petitioner-accused that since the document was registered on the basis of alleged false information, only an offence under Section 177 of IPC is attracted (proceedings for which can be instituted only by a public servant in terms of Section 195 CrPC).

The court said that Section 177 of IPC is a separate and distinct offece from that under Section 419, 420, 468 and 471 of IPC inasmuch as it relates to furnishing false information to a public servant. So the aggrieved person in such a situation would be the public servant and if he so desires, action could be initiated by such a public servant.

In the present case, the complaint was filed by persons who were personally affected by the registration of gift deeds and not the Sub-Registrar before whom false documents were furnished. Thus, it held that the embargo under Section 195(1)(a)(i) of CrPC is not attracted.

"It may be possible that the sub-registrar is not aware of the same, hence, in the event of the above facts being brought to the notice of the Sub-Registrar it would be for him to initiate or file a complaint under Section 177 of IPC as regards the said offence...In the present case, there is no complaint which has been filed insofar as an offence under Section 177 of IPC is concerned. The Sub-Registrar is not the complainant. The present complaint has been filed by persons who are affected personally by the registration of gift deeds and it is on that basis that it is alleged that the offences under Section 419, 420, 468 and 471 of IPC have been committed."

Further the bench rejected the argument that criminal proceedings cannot be initiated as already a civil suit is filed by the respondents. It said, "The reliefs which are sought for in the said suit are for the purposes of cancellation and/or declaration as regards the validity and bindingness of the gift deed and the sale deed, which cannot be granted in a criminal proceeding."

It added, "The Civil Court cannot punish the accused for criminal offences of forgery, cheating etc. Hence, though both the proceedings arise from the very same action, I am of the considered opinion that both relating to different aspects, both a suit and criminal complaint would be maintainable and any individual who is affected by any forgery or cheating or like can initiate a criminal complaint for such offences."

Case Title: Y.N. SREENIVASA & ANR v. THE STATE OF KARNATAKA

Case No: WRIT PETITION NO. 15451 OF 2019

Date of Order: 14TH DAY OF OCTOBER, 2022

Appearance: D.R. RAVISHANKAR, SENIOR COUNSEL A/W SARAVANA.S, ADVOCATE for petitioners; MAHESH SHETTY, HCGP FOR R1; A. SAMPATH, ADVOCATE FOR R2 TO R4.

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