Cult.fit co-founder Rishabh Telang has approached the Karnataka High Court seeking to quash a criminal case filed against him by his brother-in-law and former business associate Deepak Poduval.
According to a report by Bar and Bench, Justice M Nagaprasanna on Tuesday issued notices to the Karnataka government and Poduval, asking them to respond to Telang's petition. The court, however, declined to halt the police investigation. The matter is scheduled for hearing on September 2.
Brother-in-law alleges forgery and business diversion
The case originated from a complaint filed by Poduval, who alleged that Telang forged documents related to the transfer of the original Cult business and the subsequent closure of Cult Fitness Private Limited.
Bellandur Police registered an FIR against Telang on August 6 under provisions relating to criminal breach of trust, cheating, forgery, use of forged documents and criminal conspiracy under the Bharatiya Nyaya Sanhita, along with Section 66D of the Information Technology Act.
According to Poduval's complaint, the two incorporated Cult Fitness in November 2015 with equal 50% ownership. He alleged that Telang later transferred the company's business, customers, goodwill and revenue to Cultfit Healthcare Private Limited, incorporated in August 2016.
Poduval also alleged that his signatures were forged on financial documents submitted to the Registrar of Companies to facilitate the striking off of Cult Fitness in 2019.
Telang calls dispute civil and commercially motivated
Telang has disputed the allegations, arguing that the complaint was filed years after the alleged events and conflicts with contemporaneous records.
His lawyers told the court that Poduval had knowledge of the transfer of trademarks and intellectual property and had signed assignment agreements in 2017. They also said the agreements contained arbitration clauses, making the dispute primarily civil or commercial.
The court noted that police had issued Telang a notice under Section 35 of the Bharatiya Nagarik Suraksha Sanhita and that there was no immediate threat of arrest.
Telang has also alleged that the criminal complaint is linked to an ongoing family dispute.
