Criminal Revision Petition challenging Trial Court order rejecting release of seized LIC bonds and FD receipts. Court allowed petition allowing release subject to executing indemnity bond.
Impugned order of Trial Court set aside; prayer for release of NSC bonds, LIC Bonds, FD receipts etc. allowed by executing indemnity bond.
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NC: 2026:KHC:8639 CRL.RP No. 1750 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF FEBRUARY, 2026
BEFORE
THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY CRIMINAL REVISION PETITION NO. 1750 OF 2025
BETWEEN:
Digitally signed by NANDINI M S Location: HIGH COURT OF KARNATAKA
BOTH ARE RESIDING AT 177 SRI RANGA KRUPA, 6TH MAIN 2ND BLOCK, R.T.NAGAR BENGALURU - 560 032 REPRESENTED BY HIS GPA HOLDER SMT. N.E. KANTHAMANI.
…PETITIONERS
(BY SRI K.B. NAVEEN KUMAR, ADV.)
AND:
STATE OF KARNATAKA REPRESENTED BY KARNATAKA LOKAYUKTHA POLICE STATION B.H ROAD, CHITRADURGA - 577 204 REPRESENTED BY SPP
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HIGH COURT OF KARNATAKA BANGALORE - 560 001.
…RESPONDENT
(BY SRI B. LETHIF, SPL.PP)
THIS CRL.RP IS FILED U/S 397 R/W 401 CR.PC (FILED U/S 438 R/W 442 BNSS) PRAYING TO SET ASIDE THE ORDER DTD 24.06.2025 PASSED IN SPL.C.NO.5/2019 ON THE FILE OF THE PRL. DIST AND SESSIONS JUDGE, CHITRADURGA.2. ALLOW THE INTERIM APPLICATIONS FILED BY PETITIONERS AND DIRECT THE RESPONDENTS TO RELEASE SB ACCOUNTS, FD ACCOUNTS LOAN ACCOUNTS, NSC BONDS AND LIC POLICIES.
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
ORAL ORDER
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the Special Court in Spl. (PC) C. No.5/2019. In the said
proceedings, petitioners herein had filed three separate applications under Section 451 read with Section 457 of Cr.P.C. with prayers to defreeze their freezed bank accounts, release LIC bonds, FD receipts and such other documents as mentioned in the applications to their interim custody during the pendency of the case. The said applications were opposed by the prosecution by filing objections. The Trial Court by the impugned order dated 24.06.2025 had partly allowed all the three applications filed by the petitioners herein and has directed to defreeze the bank accounts of the petitioners but has rejected their prayer for release of LIC bonds and FD receipts to their interim custody. The said order has been questioned by the petitioners in this Criminal Revision Petition.
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and therefore, if the said policies and bonds are not released to the petitioners, they will be put to untold hardship.
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pending before the Trial Court for the last more than six years.
The material on record would go to show that case before the Trial Court is still at the stage of recording the evidence of PW1. It is not in dispute that prosecution has seized certain title documents of immovable properties of accused No.1, as against whom there is an allegation of possessing assets disproportionate to his known source of income to the tune of 46.83%. According to the petitioners, some of the LIC bonds and FD receipts have already matured and some of them are likely to mature shortly. If the prayer made in the applications filed by the petitioners to release LIC bonds and FD receipts, the particulars of which are mentioned in the applications, are not granted, they are likely to be put to hardship and loss, which cannot be compensated. Therefore, the Trial Court was not justified in rejecting the prayer made in the applications to release LIC bonds and FD receipts to their interim custody pending disposal of the case. I am of the opinion that if the petitioners are asked to execute necessary indemnity bond before the Trial Court undertaking to re-deposit the amount realized by them under the bonds, NSC certificates, FD receipts etc. which are released to their interim custody, subject to the
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outcome of Spl. (PC) C. No.5/2019 which is pending against
accused No.1, the same would serve the ends of justice. Accordingly, the following:-
ORDER
(ii) The impugned order dated 24.06.2025 passed in Spl. (PC) C. No.5/2019 by the Court of the Principal District and Sessions Judge, Chitradurga, is set aside and the prayer made in the applications filed by the petitioners under Section 451 read with Section 457 of Cr.P.C. to release the NSC bonds, LIC Bonds, FD receipts etc., particulars of which are given in the applications, to their interim custody, is allowed subject to petitioners executing indemnity bond before the Trial Court undertaking to re-deposit the amount realized by them from the LIC bonds, FD receipts etc., which are released to them, in the event, the accused No.1 suffers an adverse order in Spl. (PC) C. No.5/2019.
Sd/(S VISHWAJITH SHETTY) JUDGE
DN/List No.: 1 Sl No.: 38
2 issues framed by the court
Whether the Trial Court was justified in rejecting the prayer to release LIC bonds and FD receipts to the accused pending trial.
Whether release of seized financial instruments to the accused pending trial would prejudice the prosecution's case.
3 provisions across 2 enactments
Sri N.B. Seetharamu
Smt. N.E. Kantamani
Sri S. Manohar
State of Karnataka
S Vishwajith Shetty
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
