Partly allowed

Manappuram Finance Ltd. v. the State of Karnataka

Karnataka HC15 Dec 2023WP/22227/2023

Case brief

AI extract

What is this about?

Court partly allowed writ petition challenging police notice directing production and non-proceeding of seizure of gold articles. Directed police not to insist on seizure of gold ornaments while petitioner must cooperate and produce items for investigation as called.

What did the court decide?

Respondents-Police authorities directed not to insist upon seizure of gold ornaments; Petitioner to cooperate and produce gold articles for investigation as called.

Manappuram Finance Ltd. Vs the State of Karnataka — Cheque Dishonour | Karnataka HC (2023)

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NC: 2023:KHC:45860 WP No. 22227 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF DECEMBER, 2023

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BEFORE

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THE HON'BLE MR. JUSTICE K. V. ARAVIND

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WRIT PETITION No. 22227 OF 2023 (GM-POLICE)

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BETWEEN:

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Digitally signed by VINUTHA B S Location: High Court of Karnataka

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MANAPPURAM FINANCE LTD., INCORPORATED UNDER THE COMPANIES ACT 1956, HAVING ITS REGISTERED OFFICE AT VALAPAD, THRISSUR, KERALA-680567, AND HAVING ITS CHAMARAJANAGAR CAR STREET ROAD BRANCH (BRANCH CODE-584), AT CHAMARAJANAGAR CAR STREET ROAD, ROOM No.4/3453, APARNA COMPLEX, CAR STREET, CHAMRAJNAGAR-571313, REP. BY ITS AUTHORIZED SIGNATORY, AND LEGAL MANAGER, MR. JUDE G.

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…PETITIONER

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(BY SRI SANATH S. ATHREYA ADVOCATE A/W SRI POORNA PRASAD K. R., ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, BY ITS SECRETARY, HOME DEPARTMENT, VIDHANA SOUDHA BENGALURU-560001.

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THE SUPERINTENDENT OF POLICE WWHX + V82,

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2 - NC: 2023:KHC:45860 WP No. 22227 of 2023

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DOUBLE ROAD, NEAR D. C. OFFICE, BHAGIRATH NAGAR, CHAMARAJANAGARA, KARNATAKA-571313.

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THE POLICE INSPECTOR/ STATION HOUSE OFFICER CEN POLICE STATION, CHAMARAJANGARA-571313

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…RESPONDENTS

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(BY SRI SPOORTHY HEGDE N., HCGP)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 06/09/2023 ISSUED UNDER SECTION 91 AND SECTION 102 OF THE CR.P.C. ADDRESSED TO MANNAPURAM FIANCE LIMITED, THE PETITIONER HEREIN, BY R3, FURNISHED AS ANNEXURE-E. DIRECTING THE RESPONDENT POLICE 3 NOT TO PROCEED WITH THE NOTICE DATED 06/09/2023 AND FURNISHED AS ANNEXURE-E ETC.

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THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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This petition is filed challenging the notice at Annexure-E,

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dated 06.09.2023 issued by respondent No.3.

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The petitioner is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India under Chapter III B of the Reserve Bank of India Act, 1934 and is licensed to conduct business of non-banking financial

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3 - NC: 2023:KHC:45860 WP No. 22227 of 2023

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institutions. In the course of its business transactions, the petitioner has been advancing loan/money to its customers by accepting pledge of gold ornaments through its branches. Respondent No.3 has wrongly issued notice at Annexure-E directing production of gold articles for the purpose of seizure with regard to crimes investigation.

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Learned counsel for the petitioner submits that similar notice issued by the Police in respect of another branch of the petitioner-Company was subject matter for consideration before this Court in W.P.No.10754/2023. This Court by order dated 06.06.2023 has quashed similar notice by following the judgment in W.P.No.22441/2022, dated 15.11.2022, wherein this Court has directed the Police not to seize the gold articles subject to petitioner producing the same for investigation as and when directed by the Investigation Officer.

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Learned counsel for the petitioner further submits that gold articles are kept in sealed cover and the same would be produced before the Police authorities as and when required by them, subject to condition that the same cannot be seized by the Police. This petition is to be disposed of with similar

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NC: 2023:KHC:45860 WP No. 22227 of 2023

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conditions as has been imposed in W.P.No.22441/2022, dated 15.11.2022.

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In view of directions issued by the co-ordinate bench by orders referred to supra, the writ petition is to be disposed of on the same terms. Hence, the following:

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O R D E R

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Writ petition is partly allowed.

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Respondents - Police Authorities are directed not to

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insist upon seizure of the gold ornaments in question.

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The petitioner shall co-operate with the investigation and produce the gold articles for investigation, as and when called for by the Investigation Officer.

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Sd/JUDGE

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List No.: 1 Sl No.: 19

Manappuram Finance Ltd. v. the State of Karnataka

Case brief

What is this about?

What did the court decide?

Manappuram Finance Ltd. v. the State of Karnataka

Case brief

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What did the court decide?

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