M/S Kerala Gramin Bank vs State Of Kerala
2023 Latest Caselaw 8742 Ker

           IN THE HIGH COURT OF KERALA AT ERNAKULAM
                           PRESENT
        THE HONOURABLE MR. JUSTICE BECHU KURIAN THOMAS
WEDNESDAY, THE 9TH DAY OF AUGUST 2023 / 18TH SRAVANA, 1945
                  WP(CRL.) NO. 1148 OF 2022
 CRIME NO.78/2020 OF TOWN NORTH POLICE STATION, PALAKKAD
PETITIONER :

           M/S KERALA GRAMIN BANK
           A REGIONAL RURAL BANK,
           FORMED UNDER THE REGIONAL RURAL BANKS ACT, 1976,
           HAVING ITS HEAD OFFICE AT MALAPPURAM,
           REPRESENTED BY THE SENIOR MANAGER,
           KERALA GRAMIN BANK,
           BR.ANCHAL, KOLLAM DIST., PIN - 691 306.
           BY ADVS.
           MATHEW JACOB (KUNNATHU)
           K.MADHUSOODANAN
           T.G.PAUL
           SYRIAC JOSEPH


RESPONDENTS:

    1      STATE OF KERALA
           REPRESENTED BY THE PRINCIPAL SECRETARY,
           HOME DEPARTMENT,GOVT. SECRETARIAT,
           THIRUVANANTHAPURAM, PIN - 695 001.
    2      THE SUB INSPECTOR OF POLICE
           PALAKKAD TOWN NORTH POLICE STATION,
           PALAKKAD, PIN - 680 693.
    3      SRI.THANKAPPAN PILLAI
           S/O SANKARA PILLAI,
           THOTTATHIL HOUSE,
           ANAPPUZHAKKAL, ANCHAL. P.O.,
           KOLLAM DISTRICT, PIN - 691 306.
    4      SMT.MANJU,AGED 26 YEARS
           D/O MURALI, SOUPARNIKA HOUSE,
           KALLEPULLY, PALAKKAD, PIN - 678 005.
           BY ADV ARUN MATHEW VADAKKAN VADAKKAN
           ADV.C.N.PRABHAKARAN, PP
THIS WRIT PETITION (CRIMINAL) HAVING COME UP FOR ADMISSION
ON 09.08.2023, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
 WP(CRL.) 1148/2022

                                                 2




                          BECHU KURIAN THOMAS, J
                     ......................................................
                            W.P.(Crl.) No.1148 of 2022
                      ...................................................
                     Dated this the 9th day of August, 2023



                                      JUDGMENT

Petitioner challenges Ext.P5 notice, issued by the Sub

Inspector of Police, Town North Police Station, Palakkad.

The aforesaid notice directs the petitioner not to deal with

the gold ornaments pledged with it and to freeze the

transactions relating to the said gold ornaments, specified in

the notice, as they are involved in Crime No.78/2020 of

Palakkad Town North Police Station.

2. The 4th respondent is the daughter-in-law of the 3 rd

respondent. Certain gold ornaments were pledged by the 3 rd

respondent with the petitioner for obtaining two loans. In

the meantime, the 4th respondent is alleged to have filed a

complaint against the 3rd respondent as Crime No.78/2020

Palakkad Town North Police Station alleging theft of gold WP(CRL.) 1148/2022

ornaments. After registering the said crime, the investigating

officer issued Ext.P5 notice to the petitioner directing it not

to deal with the gold pledged by the 4 th respondent as a

security for the loan availed by him.

3. Though the 3rd respondent has, in the meantime, faltered in

repaying the loan, the Bank is disabled from taking steps to

recover the amount due from the 3 rd respondent through the

security created for the loan, due to Ext.P5.

4. Petitioner alleges that there is a collusion between the 3 rd

and 4th respondents in registering Crime No.78/2020. The

intention, according to the petitioner, is to avoid repayment

of the loan. It was further submitted that, if such a

procedure is adopted by the Investigating Officer then it

would be a weapon in the hands of collusive litigants

against recovery proceedings of the Bank, pursuant to

defaults on loans.

5. After hearing the learned Public Prosecutor, and the learned

counsel for the 3rd respondent, I am of the view that the

2nd respondent is not justified in issuing Ext.P5. WP(CRL.) 1148/2022

6. The Investigating officer, who investigates into a crime, has

no legal right to direct a particular loan transaction to be

frozen. If he was of the belief that any particular property

is the subject matter of a crime, the legal remedy available

to him is to seize the said property in accordance with law

and report it before the Jurisdictional Magistrate under

Section 102 of Cr.P.C. If such a step was initiated,

petitioner could have resorted to the procedure under

Section 451 or 452 or 457 of Cr.P.C., as the case may be.

Though the learned counsel for the 3 rd respondent had

submitted that, his client is ready to take back the gold

ornaments after repaying the loan amount, provided the

interest due under the loan account is waived. Considering

the circumstances, it is not proper for this Court to grant

such a direction to the Bank and it is for the 3 rd respondent

to raise such reliefs before the appropriate forum in an

appropriate proceeding.

7. Ext.P5 to the extent it directs the petitioner not to deal

with the gold ornaments pledged with it, is legally WP(CRL.) 1148/2022

unsustainable and is therefore, without any authority of

law. Hence, Ext.P5 is hereby quashed.

The writ petition is allowed as above.

sd/-

BECHU KURIAN THOMAS JUDGE AMV/09/08/2023 WP(CRL.) 1148/2022

APPENDIX OF WP(CRL.) 1148/2022

PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE GOLD LOAN PLEDGE CARD DATED 20/03/2020, IN ACCOUNT NO.56415319035320 EXHIBIT P2 TRUE COPY OF THE GOLD LOAN PLEDGE CARD DATED 07/09/2020 IN ACCOUNT NO.56415319091820 EXHIBIT P3 TRUE COPY OF THE SELF DECLARATION DATED 20/03/2020 EXHIBIT P4 TRUE COPY OF THE SELF DECLARATION DATED 07/09/2020 EXHIBIT P5 TRUE COPY OF THE LETTER DATED 10/10/2020 RECEIVED FROM THE SUB INSPECTOR OF POLICE PALAKKAD TOWN NORTH POLICE STATION EXHIBIT P6 TRUE COPY OF THE JUDGMENT DATED 18/03/2016 IN W.P (C ) NO.9155/2016 RESPONDENT EXHIBITS EXHIBIT R3(A) TRUE COPY OF THE LETTER ISSUED BY THE SENIOR MANAGER, KERALA GARMIN BANK ANCHAL BRANCH DATED NIL

TRUE COPY