M/S Klm Axiva Finvest Ltd. Vs the State of Karnataka

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NC: 2025:KHC:10146 WP No. 22332 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 10^TH DAY OF MARCH, 2025

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 22332 OF 2024 (GM-RES)

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BETWEEN:

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M/S KLM AXIVA FINVEST LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956, HAVING REGISTERED OFFICE K L M GRAND ESTATE, BYPASS ROAD, EADAPALLY, ERNAKULAM KERALA-682024 HAVING ONE OF ITS BRANCH AT 53, 2ND FLOOR, SRIRAMA LAYOUT, RBI LAYOUT, BRIGADE MILLENNIUM GATE, KOTHNUR DINNE ROAD, 7TH PHASE, J P NAGAR, BENGALURU-560 078 REP BY ITS REGIONAL MANAGER AND THE AUTHORIZED OFFICER, MR. VENKATESHA M.R.

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…PETITIONER

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(BY SRI. ANISH JOSE ANTONY., ADVOCATE)

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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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 STATION HOUSE OFFICER/ INVESTIGATION OFFICER KONANAKUNTE POLICE STATION, 144, AMRUTH NAGAR MAIN ROAD, ANJANADRI LAYOUT, KONANAKUNTE, BENGALURU, KARNATAKA-560 062.

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NC: 2025:KHC:10146 WP No. 22332 of 2024

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KOSAMATTAM FINANCE LTD REPRESENTED BY ITS AREA MANAGER, NO.1, OPP BBMP OFFICE, NARAYANAPPA LAYOUT, NEW BANK COLONY, KONANAKUNTE, BENGALURU CITY, KARNATAKA-560 062.

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FEDERAL BANK REPRESENTED BY ITS BRANCH MANAGER, NO.13, 15TH CROSS, 100 FEET RING ROAD, 6TH PHASE, J P NAGAR, BENGALURU-560078

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…RESPONDENTS

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(BY SRI. ANOOPKUMAR M V., HCGP FOR R1 & R2; SRI. SHIVARUDRAPPA, ADVOCATE FOR R3; V/O/DTD.10/01/2025 NOTICE TO R4 IS D/WITH)

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THIS WP IS FILED THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO PRAYING TO CALL FOR THE RECORDS FROM THE 4TH ADDITIONAL CHIEF METROPOLITAN MAGISTRATE LEADING TO PASSING ANNEXURE-J ORDER DATED 30.10.2023 IN CC NO.28756/2022 AND QUASH THE SAME AND FURTHER CONSEQUENTIAL ACTION TAKEN THEREAFTER.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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ORAL ORDER

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The petitioner, which is the financial institution, is before this Court challenging the order passed by the Trial Court under Sections 451 and 457 of the Cr.P.C. for releasing the amount of Rs.1,42,500 to the 3rd respondent.

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NC: 2025:KHC:10146 WP No. 22332 of 2024

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The charge sheet was laid for offences punishable under Sections 420, 408, 465, 468, and 471 read with Section 120(B) of the IPC.

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The complainant, Respondent No. 3, claiming to be the victim of a fraudulent transaction, filed an application under Sections 451 and 457 of the Cr.P.C., contending that the amount seized in PF No. 130/2022 belongs to him. During the investigation, the Investigating Officer marked a lien for Rs.1,42,500 in an account maintained by the petitioner’s bank. The Trial Court passed the impugned order, which prompted the petitioner to approach this Court.

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Heard the learned counsel for the petitioner, the learned HCGP for the respondent (State), and the learned counsel for Respondent No. 2.

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The petitioner contends that the amount of Rs.1,42,500 marked as a lien in the account maintained by the petitioner did not form part of the charge sheet. However, without issuing notice to the petitioner, the Trial Court passed the impugned order, stating that the amount in the bank account maintained by the petitioner belongs to the applicant, Respondent No. 3. The petitioner further states that it is not an accused and that no amount was fraudulently transferred to the account in question. Consequently, the Trial Court should have provided the petitioner an opportunity to be heard before passing the order. The impugned order, therefore, violates the principles of natural justice and is not legally sustainable.

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4 - NC: 2025:KHC:10146 WP No. 22332 of 2024

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In view of the above, I pass the following order:

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ORDER

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i) The petition is allowed.

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ii) The impugned order dated 3.10.2023, passed by the 4th Additional Chief Metropolitan Magistrate Court, Bengaluru, in C.C. No.28756/2022, on the application filed by Respondent No. 3 under Sections 451 and 457 of the Cr.P.C., insofar as it relates to releasing the amount of Rs.1,42,500 maintained in the petitioner’s bank, is hereby set aside.

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iii) The Trial Court is directed to pass an order on the said application in relation to the account maintained in the petitioner’s bank after affording an opportunity to be heard to both the petitioner and Respondent No. 3, within two months from the date of receipt of this order.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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List No.: 1 Sl No.: 149

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HR

M/S Klm Axiva Finvest Ltd. v. the State of Karnataka

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M/S Klm Axiva Finvest Ltd. v. the State of Karnataka

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