Rekha Vs the State of Karnataka — Karnataka HC (2025) — LawSathi Research

Rekha Vs the State of Karnataka — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

Petition disposed of with directions: petitioners at liberty to produce the No Due Certificate/formal endorsement from the Co-operative Society confirming full discharge of the loan before the Revisional Court; the Revisional Court to verify with the Investigating Officer and, upon production and if found in order, to expeditiously permit the petitioners to take lawful custody of the pledged gold ornaments.

Issue for consideration

Whether the petitioners, having repaid the loan secured by pledge of gold ornaments with the Maleyuru Primary Agricultural Co-operative Society, are entitled to lawful custody/release of the pledged gold ornaments pending disposal of the criminal proceedings, and whether the Revisional Court's stay of release should give way upon production of a No Due Certificate.

Court's answer

If the petitioners are in possession of the No Due Certificate or any formal endorsement issued by the Co-operative Society confirming full discharge of the loan, they shall furnish the same to the Revisional Court; upon production of such certificate or endorsement, the Revisional Court shall expeditiously consider the revision petition and, if found in order, permit the petitioners to take lawful custody of the pledged gold ornaments forthwith.

Ratio / Principle

The Revisional Court is to take steps to verify from the Investigating Officer whether such certificate or endorsement has already been submitted.

Key takeaways

The petitioners are granted liberty to produce the requisite endorsement or certificate from the Co-operative Society, and upon compliance the Revisional Court shall decide the matter without any undue delay.ratio¶¶60

Detailed headnote1 paragraphs

Criminal Petition (S.482 Cr.P.C. / S.528 BNSS) — borrowers of Maleyuru Primary Agricultural Co-operative Society sought quashing of revision proceedings in Crl.RP.No.35/2024 before the Principal District and Sessions Court, Chamarajanagar, initiated by the Assistant Registrar of Co-operative Societies (respondent No.2) under S.397 Cr.P.C. against the Magistrate's order releasing gold ornaments pledged as loan security — Revisional Court had stayed release until the loan obligation was fully discharged — counsel submitted the loan stood fully repaid and a No Due Certificate had been issued to the Investigating Officer — Held: petition disposed of with directions to the petitioners to furnish the certificate/endorsement to the Revisional Court; the Revisional Court to verify with the Investigating Officer and, if found in order, to expeditiously permit the petitioners to take lawful custody of the pledged gold ornaments.

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NC: 2025:KHC:37229 CRL.P No. 9733 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 9733 OF 2025 (482(Cr.PC) / 528(BNSS))

BETWEEN:

REKHA

W/O KRISHNAMURTHY M R, AGED ABOUT 63 YEARS, R/A NO. 3, 20TH BLOCK, SBM COLONY, SRIRAMPURA, 2ND STAGE, NEAR SHIVA TEMPLE, MYSORE 570 008

SHAKEEL PASHA, S/O SAKUR SAB AGED 66 YEARS, R/A MAMBALI GRAMA, YALANDARU TALUK, CHAMARAJANAGARA - 571441

Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA

MAHESH, S/O MAHADEVAPPA,

AGED ABOUT 58 YEARS, R/A KEBAPURA GRAMA, GUNDLUPETE TALUK, CHAMARAJANAGARA - 571111

RAJAPPA. S/O LATE MALAPPA, AGED ABOUT 57 YEARS, R/A ARALIKATE GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

SHANTHAMMA L,

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NC: 2025:KHC:37229 CRL.P No. 9733 of 2025

HC-KAR

W/O RAJAPPA M N, AGED ABOUT 61 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

M C NAGARAJAIAH, S/O LATE M B CHELUVAIAH, AGED ABOUT 53 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

UDAY, S/O SIDDASHETTY, AGED ABOUT 46 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

SWAMY, S/O MALANNA, AGED ABOUT 66 YEARS, R/A ARALIKATE GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

GEETHA, W/O BASAVANNA K B, AGED ABOUT 46 YEARS, R/A KALURA GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

MAHADEVAPPA, S/O NAGAPPA, AGED ABOUT 53 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

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GOPALASHETTY, S/O LATE MOLA CHIKKASHETTY, AGED ABOUT 37 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

PUTTASWAMYSHETTY, S/O MADASHETTY H, AGED ABOUT 51 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

JAVARASHETTY, S/O MARASHETTY, AGED ABOUT 26 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA - 571440

PUTTASWAMY, S/O LINGAIAH, AGED ABOUT 56 YEARS, R/A MALEYURU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA-571 440

BASAVANNA, S/O MADAPPA, AGED ABOUT 61 YEARS, R/A MUDNAKODU GRAMA, CHAMARAJANAGARA TALUK, CHAMARAJANAGARA- 571 440

…PETITIONERS

(BY SRI. RITHIK Y M., ADVOCATE)

AND:

THE STATE OF KARNATAKA BY CHAMARAJANAGARA CEN POLICE STATION,

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HC-KAR

CHAMARAJANAGARA DISTRICT. REPRESENTED BY ITS STATE PUBLIC PROSECUTOR, HIGH COURT BUILDING, BENGALURU- 560 001.

M S DAYANANDA, S/O LATE SHIVAMADAPPA, AGED ABOUT 56 YEARS, ASSISTANT REGISTRAR OF THE CO-OPERATIVE SOCIETY, CHAMARAJANAGARA SUB-DIVISION, CHAMARAJANAGARA- 571313.

…RESPONDENTS

(BY SRI. RAHUL RAI. K, HCGP)

THIS CRL.P IS FILED U/S 482 CR.P.C, 1973 PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN CRL.RP.NO.35/2024, PENDING ON THE FILE OF HONBLE PRINCIPAL DISTRICT AND SESSIONS COURT, CHAMARAJANAGARA INITIATED BY THE 2nd RESPONDENT U/S 397 OF THE CR.P.C., 1973., AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

This petition has been filed by the petitioners, who are borrowers of a loan, seeking release of certain gold ornaments pledged by them as security while availing a loan from the Maleyuru Primary Agricultural Co-operative Society. The

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HC-KAR

petitioners have approached this Court under Section 457 of the Code of Criminal Procedure, 1973, seeking restoration of the gold ornaments, which were seized in connection with a criminal case and subsequently produced before the learned Magistrate. On consideration of the petitioners’ application, the learned Magistrate allowed the release of the gold ornaments in favor of the petitioners, subject to certain conditions being imposed.

Thereafter, the Assistant Registrar of Co-operative Societies, who is the second respondent herein, filed a revision petition challenging the order of the learned Magistrate. The Revisional Court, upon examination of the matter, stayed the release of the gold ornaments on the ground that the petitioners had obtained a loan from the Maleyuru Primary Agricultural Co-operative Society by pledging the said gold ornaments. The Revisional Court observed that until the loan obligation was fully discharged, the petitioners could not lawfully claim custody of the pledged ornaments pending disposal of the criminal proceedings.

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NC: 2025:KHC:37229 CRL.P No. 9733 of 2025

HC-KAR

Learned counsel appearing for the petitioners has submitted before this Court that the petitioners have now fully repaid the entire loan amount to the society. It is further submitted that the society has no objection to the release of the gold ornaments, and a “No Due Certificate” has already been issued to the Investigating Officer confirming that there are no outstanding amounts due against the petitioners.

In light of the submissions made, if the petitioners are in possession of the said “No Due Certificate” or any formal endorsement issued by the Co-operative Society confirming that the loan has been fully discharged, they shall furnish the same to the Revisional Court. The Revisional Court shall also take steps to verify from the Investigating Officer whether such a certificate or endorsement has already been submitted. Upon production of such certificate or endorsement, the Revisional Court shall expeditiously consider the revision petition and, if found in order, permit the petitioners to take lawful custody of the pledged gold ornaments forthwith.

The petitioners are accordingly granted liberty to produce the requisite endorsement or certificate from the Co-operative

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HC-KAR

Society, and upon compliance, the Revisional Court shall decide the matter without any undue delay. With these directions, the

present petition is disposed of.

Sd/(SACHIN SHANKAR MAGADUM) JUDGE

YN

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