Karnataka High Court
Sri N H Raju vs State Of Karnataka on 30 July, 2024
Author: Mohammad Nawaz
Bench: Mohammad Nawaz
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NC: 2024:KHC:30116
CRL.A No. 1274 of 2024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 30TH DAY OF JULY, 2024
BEFORE
THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ
CRIMINAL APPEAL NO. 1274 OF 2024 (KPIDFE)
BETWEEN:
1. SRI N H RAJU
S/O M NAGRAJU
AGED ABOUT 61 YEARS
R/O MIG 100, 1ST FLOOR,
2ND STAGE, K H B COLONY
BASAVEHWARA NAGARA,
NEAR PUNYA HOSPITAL
BENGALURU NORTH - 560079
...APPELLANT
(BY SRI. ADIT CHANDANAGOUDAR., ADVOCATE)
AND:
1. STATE OF KARNATAKA
BY MOODABIDRE POLICE STATION,
MANGALORE CITY
Digitally REPTD BY STATE PUBLIC PROSECUTOR
signed by HIGH COURT OF KARNATAKA
LAKSHMI T
BENGALURU - 560001.
Location:
High Court
of Karnataka 2. CRIMINAL INVESTIGATION DEPARTMENT
SPECIAL ENQUIRY DIVISION
HAVING ITS OFFICE AT
1, DR A KRISHNA RAO ROAD
N AMBEDKAR VEEDHI
SAMPANGI RAMA NAGAR
BENGALURU
KARNATAKA - 560001
...RESPONDENTS
(BY SRI.R RANGASWAMY, HCGP)
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NC: 2024:KHC:30116
CRL.A No. 1274 of 2024
THIS CRL.A. IS FILED U/S.16 OF KPIDFE ACT 2004
PRAYING TO A. SET ASIDE THE ORDER DATED 12.06.2024 AT
ANNEXURE PASSED IN CRIMINAL MISC NO.353/2024 BY THE
LEARNED PRINCIPAL DISTRICT AND SESSIONS JUDGE, D.K.,
MANGALURU.B. CONSEQUENTLY THIS HONBLE COURT MAY BE
PLEASED TO ALLOW THIS APPEAL AND THEREBY RELEASE THE
APPELLANT ON REGULAR BAIL IN CR.NO.41/2023 REGISTERED
BY THE RESPONDENT POLICE FOR THE OFFENCE P/US/
406,420 R/W SEC.34 OF IPC AND SEC.9 OF KARNATAKA
PROTECTION OF INTEREST DEPOSITORS IN FINANCIAL
ESTABLISHMENT ACT 2004.
THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE MOHAMMAD NAWAZ
ORAL JUDGMENT
This appeal is preferred under Section 16 of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 ('KPIDFE Act' for short)
2. Heard both sides and perused the material on record.
3. Crime No.41/2023 of Moodabidre Police Station is registered against the appellant and four others on a complaint lodged by one Prakash Govius son of John -3- NC: 2024:KHC:30116 CRL.A No. 1274 of 2024 Govius, for offences punishable under Section 406, 420 r/w 34 of IPC.
4. As per complaint allegations, the appellant herein and 8 others started one Panchavati Multi State Cooperative Credit Society Limited in the year 2014 and issued bond, pass book, share certificates to the complainant and others, who opened their accounts in the Society and received deposits from them, but not returned the amount deposited. On the other hand, after collecting more than Rs.26,41,771/-, closed the Society and thereby cheated the complainant and others.
5. The learned High Court Government Pleader has contended that the appellant being the chairman of the Panchavati Multi State Cooperative Credit Society Limited along with other accused persons namely the Directors, lured the complainant and other depositors to invest money in the said Society and thereafter cheated them by not returning the deposits made by them, even after the maturity period. He submitted that subsequent to -4- NC: 2024:KHC:30116 CRL.A No. 1274 of 2024 the registration of FIR, investigation has been taken over by the CID. He contended that if the appellant is granted bail there are chances of absconding and interfering with the investigation and also tampering with the witnesses. He further submitted that two other cases are registered against the appellant in Crime No.8/2023 and Crime No.107/2023 of Tumkur Police Station for similar offences.
6. The learned counsel for appellant has contended that the Society has not been closed as alleged. The complaint allegations are false. The appellant is innocent. He was arrested on 18.04.2024 and he has cooperated with the investigation and he will undertake to cooperate with the investigation of the case. He contended that the allegations in the complaint do not attract the ingredients of the offences alleged. The offences alleged are not punishable with death or imprisonment for life. The appellant is a permanent resident of Bengaluru and having deep roots in the Society. He hails from a respectable family and has no -5- NC: 2024:KHC:30116 CRL.A No. 1274 of 2024 bad antecedents. He submits that the appellant is ready and willing to abide by any conditions which may be imposed by this Court.
7. One of the grounds which weighed in the mind of the learned Sessions Judge to reject the prayer seeking regular bail was that there is a specific bar for entertaining a bail petition filed under Section 438 or 439 of Cr.P.C. It is clear from a plain reading of Section 18 of the KPIDFE Act that it does not restrict an accused to prefer a regular bail petition before the Special Court. The observations made in criminal petition No.9971/2022 decided on 10.11.2022 by this Court, which was relied by the learned Sessions Judge, is in respect of petition filed before the High Court under Section 438 and 439 of Cr.P.C., since an appeal is provided under Section 16 of the KPIDFE Act against an order passed by the Special Court. In that context it was held that a petition under Section 438 and 439 of Cr.P.C., is not maintainable.
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NC: 2024:KHC:30116 CRL.A No. 1274 of 2024
8. The allegations are that the appellant being the Chairman and other accused being the Directors of one Panchavati Multi State Cooperative Credit Society Limited, opened its branch at Pinto complex, Moodabidre during 2014 and they accepted deposits from various persons including the complainant and collected to the tune of Rs.26,41,771/- and later closed the said branch and cheated them etc.
9. The appellant claims to be innocent. It is his contention that the entire allegations are false and the ingredients of the offence now alleged are not attracted.
10. Appellant is already arrested and interrogated. Preliminary charge sheet has been filed. The offences alleged are not punishable with death or imprisonment for life. The prosecution has to establish that at the inception, appellant had an intention to cheat the complainant and other depositors. He has been arraigned as accused No.1 on the ground that he is the Chairman of the Society. He has undertaken to cooperate with the further investigation -7- NC: 2024:KHC:30116 CRL.A No. 1274 of 2024 of the case and also to abide by other conditions. Hence, the following:
ORDER Appeal is allowed.
The order dated 12.06.2024 passed by the Court of Principal District and Sessions Judge, D.K., Mangaluru in Crl.Misc No.353/2024 is set aside.
Appellant/accused No.1 in Crime No.41/2023 of Moodabidre Police Station, is ordered to be released, subject to following conditions:
i. He shall execute a bond in a sum of Rs.1,00,000/- (Rupees One Lakh only) with two sureties for the likesum.
ii. He shall appear before the
Investigation Officer as and when
required for the purpose of
investigation and shall cooperate with the investigation of the case. iii. He shall furnish proof of his residential address and shall inform the -8- NC: 2024:KHC:30116 CRL.A No. 1274 of 2024 I.O/concerned Court if there is change in the address.
iv. He shall not tamper or threaten the prosecution witnesses/evidence in any manner.
v. He shall be regular in attending the Court proceedings.
Sd/-
JUDGE HB List No.: 1 Sl No.: 24