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2025 Supreme(AP) 538
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
HARINATH.N, J.
Manappuram Asset Finance Limited - Appellant
Versus
The State Of AP - Respondent
Writ Petition Nos.25540, 26267, 3584, 13928, 13944, 16467, 23417, 28721, 28888 of 2023, 8621, 9480, 9648, 10424, 14279, 17065, 23656, 23757, 24620, 25826, 26080 of 2024
Decided on : 30-08-2025
Advocates Appeared:
For the Appellant : V NITESH
For the Respondent: GP FOR HOME, T SREEDHAR
For the Appellant : V NITESH
For the Respondent: GP FOR HOME, T SREEDHAR
Pawnee rights under the Indian Contract Act do not extend to crime proceeds; compliance with investigative notices prevails to protect victims' property rights.
Headnote:(A) Code of Criminal Procedure, 1973 - Sections 91 and 102 - Indian Contract Act, 1872 - Sections 173 and 178-A - Petitioner companies challenge notices to produce mortgaged gold ornaments amidst ongoing criminal investigations for theft - The notices were issued due to the ornaments being linked to crime proceeds. (Paras 1, 18, 25)
(B) Pawnee and Pawnor Responsibilities - The Pawnee cannot decline compliance based on claims of legal retention rights when dealing with crime property, as the gold ornaments belong to third parties affected by theft. (Paras 3, 30)
(C) Victims’ Rights - Importance of safeguarding victims’ claims to stolen property over the contractual rights of the finance companies. (Paras 32, 33)
Facts of the case:
The petitioner, a non-banking financial institution, is required to produce gold ornaments pledged as security for loans, which are now linked to various theft cases across multiple police stations. (Paras 4, 5)
Findings of Court:
The police have the statutory duty to investigate and recover stolen property, and the petitioners' rights cannot override this duty. The notices are upheld as lawful. (Paras 25, 34)
Issues: Whether notices issued under Sections 91 and 102 can be annulled under Article 226, in light of claims regarding the nature of pledged gold. (Para 17)
Ratio Decidendi: The right of a Pawnee to retain pledged goods does not extend to items that are proved to be crime proceeds, as the interest of victims must take precedence during investigations. (Paras 24, 29)
Result: Writ petitions dismissed.
ORDER :
HARINATH.N, J.
1. The petitioners are aggrieved by the issuance of notices under Section 91 and Section 102 of Cr.P.C., ( Section 94 of BNSS ) by the investigating officers of various police stations investigating the crimes registered. The petitioners are in the business of extending loans against the mortgage of gold ornaments.
2. The petitioners were issued notices by the investigating officers to produce and hand over the gold ornaments during the course of the investigation.
The details of the batch of writ petitions are as follows ;
| S.No. | WP.No. | Police Station | Crime number | Section of Law | Complaintfiled by |
| 1. | WP.No.25540 of 2023 | Bhimunipatnam Police station | 253 of 2023 | 409, 420 of IPC | Branch Head, IIFL Finance Ltd., |
| 2. | WP.No.28721 of 2023 | Bobbili Town Police Station | 541 of 2023 | 457, 380 IPC | K.Kavitha Sravanthi alleging theft of her gold ornaments |
| 3. | WP.No.26267 of 2023 | Bhimunipatnam Police Station | 253 of 2023 | 409, 420 IPC | Branch Head, IIFL Finance Ltd., |
| 4 | WP.No.23757 of 2024 | Sompta Police Station | 119 of 2024 | 303 (2) BNS | G.Jeevaratnam alleging theft of gold ornaments |
| 5 | WP.No.23656 of 2024 | Kovvur Town Police Station | 227 of 2024 | 331 (4) 305(a) BNS | K.Ushasri alleging theft of her gold ornaments |
| 6 | WP.No25826 of 2024 | Alamuru Police Station | 212 of 2024 | 331 (4), 305 BNS | J.Maaruthi Sivaram, alleging theft of gold ornaments |
| 7 | WP.No.3584 of 2023 | Chodavaram Police Station | 32 of 2023 | 454, 380 IPC | R.Sasank Bharat alleging theft of gold ornaments |
| 8 | WP.No.26080 of 2024 | Tadepalli Police Station | 474 of 2024 | 306 BNS | M.Sambasiva Rao alleging theft of gold ornaments |
| 9 | WP.No.24620 of 2024 | Madanapalle Rural Police Station | 423 of 2024 | Woman missing | P.Surendra, alleging missing of woman and also theft of gold ornaments |
| 10 | WP.No.8621 of 2024 | Guntakal I Town Police Station | 5 of 2024 | 454, 380 IPC | D.Rajesh alleging theft of gold ornaments |
| 11 | WP.No.9480 of 2024 | Muddanur Police Station | 286 of 2023 | 454, 380 IPC | P.Viswarupa Achari alleging theft of gold ornaments |
| 12 | WP.No.28888 of 2023 | Yeleswaram Police Station | 267 of 2022 | 457, 380 IPC | G.Chinnarao alleging theft of gold ornaments |
| Jaggampeta Police Station | 295 of 2023 | 457, 380 IPC | Satyavathi Rayi alleging theft of gold ornaments | ||
| Jaggampeta Police Station | 296 of 2023 | 457, 380 IPC | Srinivas Bhumadi | ||
| Kirlampudi Police Station | 103 of 2023 | 457, 380 IPC | Kanta Sanyasi Rao alleging theft of gold ornaments | ||
| Samalkota Police Station | 192 of 2023 | 457, 380 IPC | Satyaveni Palacharlla alleging theft of gold ornaments | ||
| Peddapuram Police Station | 120 of 2023 | 457, 380, 511 IPC | P.Satyanarayana Rao alleging theft of gold ornaments | ||
| Peddapuram Police Station | 174 of 2023 | 457, 380 IPC | P.Satyanarayana alleging theft of gold ornaments | ||
| Yeleswaram Police Station | 171 of 2023 | 457, 380 IPC | G.Reddibabu alleging theft of gold ornaments | ||
| Samalkot Police Station | 267 of 2023 | 457, 380 IPC | B.V.V.Satyanara yana alleging theft of gold ornaments | ||
| Jaggampeta Police Station | 194 of 2023 | 457, 380 IPC | S. Srinu alleging theft of gold ornaments | ||
| Samalkot Police Station | 124 of 2023 | 457, 380 IPC | Devi Jyothula alleging theft of gold ornaments | ||
| Prathipadu Police Station | 362 of 2022 | 457, 380 IPC | K.Veerababu alleging theft of gold ornaments | ||
| Addateegala Police Station | 52 of 2022 | 457, 380 IPC | Y.Satyanarayana alleging theft of gold ornaments | ||
| 13 | WP.No.23417 of 2023 | Krishnalanka Police Station | 459 of 2023 | 454, 380 IPC | N.V.Satyanaraya na Murthy alleging theft of gold ornaments |
| 14 | WP.No.9648 of 2024 | Vinukonda Police Station | 75 and 76 of 2024 | 457, 380 IPC | D.Gangadhara Rao D.Akhilandeswari alleging theft of their gold ornaments |
| 15 | WP.No.10424 of 2024 | Parawada Police Station | 175 of 2024 | 454, 380 IPC | Ch.Ramadevi alleging theft of gold ornaments |
| 16 | WP.No.14279 of 2024 | Pattabhipuram Police Station | 193 of 2024 | 380 IPC | P.Arunkumar alleging theft of gold ornaments |
| 17 | WP.No.13928 of 2023 | Kavali I Town Police Station | 55 of 2023 | 380 IPC | P.Madhu Sudhana Rao alleging theft of gold ornaments |
| 18 | WP.No.17065 of 2024 | Pendurthy Police Station | 270 of 2024 | 457, 380 IPC | M.Jayanth Kumar alleging theft of gold ornaments |
| 19 | WP.No. 16467 of 2023 | Pedakakani Police Station | 232 of 2023 | 380 IPC | K.Samrajyamma alleging theft of gold ornaments |
| 20 | WP.No.13944 of 2023 |
