The Indian Bank Vs The State Rep. by the Inspector of Police

PRAYER: Criminal original petition filed under Section 528 of BNSS to modify the condition No.4 in Para No.11 imposed on the petitioner in CMP.No.6946 of 2020 by order dated 18.01.2021 by the learned Judicial Magistrate No.II, Erode.

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For Petitioner(s): Mr.A.K.Sachindhar For Respondent(s): Mr. Leonard Arul Joseph Selvam Additional Public Prosecutor for R1

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CRL OP No. 6345 of 2026

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ORDER

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This criminal original petition is filed to modify condition No.4 in paragraph No. 11 of the order dated 18.01.2021 passed in C.M.P. No. 6946 of 2020 by the learned Judicial Magistrate No.II, Erode.

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2(i). The case of the petitioner is that the 2^nd respondent herein had approached the petitioner Bank for a loan of Rs.15,00,000/- for purchasing a Hyundai Creta Car . On 21.09.2020, the 2^nd respondent had hypothecated the car belonging to her bearing Registration No. TN 56 W 9999 and submitted the registration certificate of the hypothecated car to the petitioner Bank, pursuant to which the petitioner Bank disbursed a sum of Rs.15,27,380/- for purchase of Hyundai Creta Car. Subsequently, the 2^nd respondent had bought Hyundai Creta Car bearing Registration No. TN 56 P 7621 and was enjoying the possession of the same.

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2(ii) While so, the petitioner Bank came to know from the Manager of Canara Bank, Villarasampatti Branch, Erode that before clearing the dues, the 2^nd and 3^rd respondents had fraudulently hypothecated the vehicle bearing Registration No. TN 56 P 7621, which was bought by the 2^nd respondent by availing loan from the petitioner Bank, to buy another car bearing Registration No. TN 56 R 8055 in the name of the 3^rd respondent from the loan obtained from Canara Bank, Villarasampatti Branch to the tune of Rs.18,95,784/-. A complaint in this regard was filed by the Manager of Canara Bank before the respondent Police and the same was registered in Crime No. 9 of 2020. During

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the enquiry, the petitioner’s bank officials found that the documents submitted by the 2^nd respondent were fake and that the purchase invoice pertaining to the vehicle bearing Registration No. TN 56 P 7621 was never produced by the 2^nd respondent before the petitioner Bank.

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2(iii) The petitioner Bank filed C.M.P. NO. 6946 of 2020 before the learned Judicial Magistrate No.II, Erode, to hand over the possession of the vehicle bearing Registration No. TN 56 P 7621 and the same was allowed on 18.01.2021 subject to certain conditions. One of the conditions imposed while granting interim custody of the said vehicle was that the vehicle shall not be sold or alienated and that it shall be produced in the manner as it was taken before. Seeking modification of the said condition, the present criminal original petition is filed.

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Learned counsel for the petitioner submitted that the petitioner being a Banker, has to realise the money by selling the car and if the vehicle is not allowed for sale, then the petitioner’s Bank will be put to great hardship.

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Heard the learned Additional Public Prosecutor for the 1^st respondent and perused the materials on record.

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It is seen that the petitioner had given a loan to the 2^nd respondent for purchase of Hyundai Creta Car and the 2^nd respondent, on hypothecation of a car belonging to her, took a loan of Rs.15lakhs. After purchase of Hyundai Creta car bearing Registration No. TN 56 P 7621 and using the documents of the said car, had taken further loan from Canara Bank, suppressing the hypothecation

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with the petitioner Bank. The Canara Bank had lodged a complaint in this regard and a case in Crime No. 9 of 2020 was registered. Subsequently, both the cars, bearing Registration Nos. TN 56 P 7621 and TN 56 R 8055 were seized.

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As far as the car bearing Registration No. TN 56 R 8055 is

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concerned, Canara Bank had taken return of the vehicle and it is with them.

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With regard to the petitioner Bank, the Trial Court had ordered

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return of vehicle bearing Registration No. TN 56 P 7621 subject to certain conditions and the petitioner is aggrieved by condition No. 4 at paragraph No.11 of the order dated 18.01.2021 in C.M.P. NO. 6946 of 2020 restraining the petitioner Bank from alienating the vehicle and to produce in the same manner as it was taken before when required. Further, the Trial Court had also negatived the prayer sought by the petitioner to issue a direction to Regional Transport Officer, Perundurai to do registration and transfer ownership.

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Admittedly, the petitioner is a hypothecator and as a hypothecator, has got right to re-possess the vehicle at any time.

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Learned Additional Public Prosecutor fairly submitted that if the vehicle details are properly documented, he has got no objection and that documentation is necessary to proceed against the accused in Crime No. 9 of 2020

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In view of the above, the condition No.4 of paragraph No.11 of the order dated 18.01.2021 in C.M.P. No. 6946 of 2020 imposed by the Trial Court,

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restraining the petitioner from alienating the vehicle is not proper and the same is set aside. The petitioner can alienate the vehicle and the Regional Transport Officer, Perundurai, can consider the transfer of ownership of the car and register the same. The only requirement is that the vehicle details, physical features have to be properly documented by way of audio and video recording recorded in a CD and along with CD and pendrive, a certificate under Section 65-B to be produced. The entire process shall be conducted in the presence of the Investigating Officer and the Court Staff.

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