Karnataka High Court
Sri Manjunatha B S vs State Of Karnataka on 1 December, 2023
Author: Mohammad Nawaz
Bench: Mohammad Nawaz
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NC: 2023:KHC:43500
CRL.A No. 376 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 1ST DAY OF DECEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ
CRIMINAL APPEAL NO. 376 OF 2023
BETWEEN:
1. SRI. MANJUNATHA B S
S/O M SOMAPPA
AGED ABOUT 44 YEARS,
RESIDING AT NO. 3-467
3rd BLOCK, NETHAJI LAYOUT,
KUSHALANAGARA
KODAGU-571 234.
...APPELLANT
(BY SRI. MANJUNATHA B V., ADVOCATE)
AND:
1. STATE OF KARNATAKA
THROUGH STATION HOUSE OFFICER,
KUSHALANAGARA POLICE STATION,
Digitally KUSHALANAGARA SUB-DIVISION,
signed by KUSHALANAGARA
SUMITHRA R KODAGU DISTRICT.
Location:
High Court of REPRESENTED BY
Karnataka STATE PUBLIC PROSECUTOR
HIGH COURT OF KARNATAKA
BENGALURU-560001.
...RESPONDENT
(BY SMT. SOWMYA R., HCGP)
THIS CRL.A IS FILED U/S.16 OF KARNATAKA
PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL
ESTABLISHMENT ACT, 2020 PRAYING TO SET ASIDE THE
ORDER DATED 25.01.2023 PASSED BY THE PRINCIPAL
SESSIONS JUDGE, KODAGU AT MADIKERI IN
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CRL.A No. 376 of 2023
CRL.MISC.NO.17/2023 IN C.C.NO.702/2021 OF CR.NO.5/2021
FILED BY THE KUSHALANAGAR POLICE FOR THE ALLEGED
OFFENCES P/U/S 420 AND 417 OF IPC AND SECTION 9 OF
KARNATAKA PROTECTION OF INTEREST DEPOSITORS
EXORBITANT ACT-2004 AND TO ENLARGE THE APPELLANT ON
ANTICIPATORY BAIL IN THE EVENT OF ARREST BY THE
RESPONDENT POLICE IN C.C.NO.702/2021 OF CR.NO.5/2021
FILED BY KUSHALANAGARA POLICE FOR THE ALLEGED
OFFENCES P/U/S 420 AND 417 OF IPC AND SECTION 9 OF
KARNATAKA PROTECTION OF INTEREST DEPOSITORS
EXORBITANT ACT-2004.
THIS APPEAL IS COMING ON FOR ADMISSION, THIS DAY,
THE COURT DELIVERED THE FOLLOWING:
JUDGMENT
This appeal is preferred under Section 16 of the
KPIDFE Act, 2020, being aggrieved by the order passed by
the learned Sessions Judge rejecting the application filed
by the appellant under Section 438 of Cr.P.C., to enlarge
him on anticipatory bail in Crime No.5/2021 of
Kushalnagar Police Station.
2. Heard the learned counsel for the appellant and
the learned High Court Government Pleader for the
respondent/State and perused the material on record.
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3. A private complaint was filed by one Sri
Basavaraju.K before the Court of Civil Judge and JMFC,
Kushalnagar, alleging that the petitioner approached him
and introduced himself as the owner of 'Ray Groups
Finance and Chit Fund' and insisted him and his son to
become a member of the said chit fund stating that he has
a valid license to run the chit fund. Believing his words,
they became members and paid a total sum of
Rs.22,32,900/-. Later when the complainant requested
him to repay the chit money the said amount was not
paid. It is alleged that the petitioner by receiving a sum of
Rs.22,32,900/- towards chit amount from the complainant
and his son, cheated him etc.
4. The private complaint was referred to police for
investigation under Section 156(3) of Cr.P.C. FIR was
registered for an offence punishable under Section 420 of
IPC.
5. The learned Sessions Judge has rejected the
bail petition on the ground that at pre-trial stage, it is not
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permissible and possible to evaluate the correctness or
otherwise of the allegations and now the charge sheet is
also filed. For a period of one year and seven months the
accused has been successful in avoiding his arrest and
therefore, the discretionary relief of anticipatory bail
cannot be granted.
6. It is contended by the learned counsel for
appellant that the complainant himself has to pay money
to the appellant, as he had approached the appellant in
the month of December 2017 and requested to provide
financial assistance and an amount of Rs.15,00,000/- was
paid as hand loan by way of cash. For sometime, the
installments were paid, but later the complainant stopped
making payment. It is contended that, when the said
amount was demanded, complainant has come up with a
false complaint.
7. The learned High Court Government Pleader
has contended that the appellant has been running a chit
fund business and he is in the habit of cheating the
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general public and submits that the police have filed
charge sheet against the appellant, who is absconding
from the date of registration of the case. He has therefore
sought to dismiss the petition.
8. FIR was registered for an offence punishable
under Section 420 of IPC. Charge sheet is filed for the
offence under Section 420 and 417 of IPC and Section 9 of
the Karnataka Protection of Interest of Depositors in
Financial Establishments Act-2004 (in short 'KPIDFE Act').
As per complaint allegations the transaction between the
appellant and the complainant took place between
04.01.2019 and 18.12.2020. It is stated that both the
complainant and his son joined five chits and paid a total
sum of Rs.22,32,900/- It is further stated that there were
20 other members. As per the charge sheet the accused
has cheated the complainant and his son to the tune of
Rs.13,20,200/-. It is not the case of prosecution that
even other members were cheated by the accused. The
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allegations made against the appellant have to be
established during trial.
9. The appellant is a permanent resident of
Kushalnagar of Kodagu District. It is not forthcoming as to
why the Police have not arrested him so far. The
submission of the learned High Court Government Pleader
that the appellant has been absconding from the date of
registration of the crime cannot be accepted. The learned
counsel for the appellant has submitted that the
registration of a case against him was not within his
knowledge and only after the initiation of proceedings
under Section 82 of Cr.P.C., he has come to know about
the criminal proceedings initiated against him.
10. In the above facts and circumstances, the
appellant can be given an opportunity to appear before the
learned Magistrate and seek for recalling of the NBW and
the proceedings initiated against him under Section 82 and
83 Cr.P.C. If any such application is filed on or before
13.12.2023, the proceedings initiated as above shall stand
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set aside and the learned Magistrate shall recall the NBW
and pass orders releasing the accused on bail imposing
necessary conditions as it deems fit in the facts and
circumstances of the case.
Appeal is disposed of.
SD/-
JUDGE
HB
