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2025 Supreme(Kar) 650

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
G. BASAVARAJA, J. 
Sri Kariyappa T., S/o. Thimmaaiah – Petitioner 
Versus
M/s Muthoot Finance Ltd., Represented By Its Assistant Manager-In-Charge Mr Pandu, S/o. Kurumbila - Respondent 
Criminal Revision Petition No. 820 of 2022 (397(Cr.PC)/438(BNSS))
Decided On : 09-06-2025

Advocates Appeared:
For the Petitioner:Sri. Girish B. Baladare., Advocate

A conviction requires adequate evidence of knowledge about the property being stolen; mere possession is insufficient for charges of cheating under IPC.

Headnote:(A) Indian Penal Code - Sections 417, 418, and 420 - Criminal revision petition concerning conviction for cheating based on pledging stolen gold ornaments - The Court of Principal Senior Civil Judge & CJM convicted the accused and sentenced him to six months' simple imprisonment and a fine; this conviction was confirmed by the Appellate Court. (Paras 1, 3, 21)

(B) Evidentiary Standards - A conviction requires sufficient material to substantiate knowledge of the property being stolen. The Trial Court failed to appreciate critical evidence regarding the accused's understanding of the transaction, and thus the conviction was not sustainable under law. (Paras 20, 21)

Facts of the case:
The accused pledged stolen gold ornaments for a loan, leading to allegations of cheating against him. The complainant, a finance company, did not establish that the accused was aware the gold was stolen.

Findings of Court:
The Trial and Appellate Courts erred in conviction due to lack of evidence regarding the accused's knowledge of the stolen nature of the gold.

Issues: Whether the evidence warranted a conviction under the IPC sections cited and the appropriateness of the Trial Court's findings.

Ratio Decidendi: The court determined that mere possession of gold suspected to be stolen without proof of knowledge does not constitute the offences alleged. The basis of the conviction was insufficient and contrary to the evidentiary requirements of criminal law.

Result: Criminal revision petition is allowed; accused acquitted of charges under IPC Sections 417, 418, and 420.

Table of Content
1. revision petition context and parties. (Para 1 , 2)
2. factual background of the case. (Para 3 , 4 , 5)
3. evidence presented by both parties. (Para 6 , 7)
4. arguments of the revision petitioner. (Para 8 , 9 , 10 , 11 , 12)
5. court's consideration of the case. (Para 13 , 14 , 15)
6. court's analysis and judgment reasoning. (Para 16 , 17 , 18 , 19 , 20 , 21)
7. final order and conclusion. (Para 22)

ORDER :

(G. BASAVARAJA, J.)

Revision Petitioner/accused has preferred this revision petition against the judgment of conviction and order on sentence passed by the Court of Principal Senior Civil Judge & CJM, Chikkamagaluru (hereinafter referred to as 'Trial Court' for short) in C.C.No.923/2016 dated 29.11.2019 which is confirmed by the Court of II Addl. District and Sessions Judge, Chikkamagaluru (hereinafter referred to as 'Appellate Court' for short) in Crl.A.No.271/2019 dated 11.10.2021.

2. For the sake of convenience, the parties in this revision petition are referred to as per their status and rank before the Trial Court.

3. The brief facts leading to this Revision Petition are that the complainant has filed a private complaint under Section 200 of Cr.P.C. against this revision petitioner/accused for the offences punishable under Sections 417 ,418 and 420 of INDIAN PENAL CODE . It is alleged by the complainant that complainant company is a non-banking finance company registered under the Companies Act, 1956, having a valid certificate of registration from the Reserve Bank of India, which permits complainant company to give loans to public against the pledge of gold ornaments. The complainant company has got more than 4000 branches all over the country including branch at Chikkamagaluru. The accused, on 01.12.2012 pledged gold ornaments weighing 51 grams and obtained loan of Rs.1,15,000/- from the complainant's company. Thereafter on 16.07.2013, Santhebennur police came to the complainant's company with accused for recovery of gold ornaments pledged in the finance company and seized them from the complainant. At the time of pledging gold ornaments, this accused had stated that they belong to him. Later, it is learnt that it is a stolen property in Crime No.135/2012 of Santhebennur Police Station. The accused has pledged gold ornaments which was stolen, by misrepresentation and has received Rs.1,15,000/- from the complainant. Thus, the accused has committed the offence punishable under Sections 417 ,418 and 420 of INDIAN PENAL CODE .

4. On the basis of averments made in the complaint PCR No.9/2015 and the documents produced by the complainant, the Trial Court took cognizance of the offences and recorded the sworn statement of the complainant and registered the case against this accused in C.C.No.923/2016 and summons was issued to him. (Learned Principal Senior Civil Judge and CJM, Chikkamagaluru has not passed any order as to the penal provisions of INDIAN PENAL CODE . However, the order sheet pertaining to C.C.No.923/2016 reveals that provisions of law is shown as Sections 417 , 418 and 420 of INDIAN PENAL CODE .) by concerned case worker without the order of the Court.

5. In pursuance of summons, the accused appeared before the Trial Court and enlarged on bail. Before framing of charge, learned Magistrate has recorded the evidence of PW.1. On the basis of his evidence, the Trial Court has held that there are sufficient material against this accused and accordingly charges are framed and the same was read over to the accused. Having understood the same, the accused pleaded not guilty and claimed to be tried.

6. To prove the case of complainant one Pandu, Assistant Manager of Muthoot Finance Company is examined as PW.1 and 13 documents were marked as Exs.P1 to P13. On closure of prosecution evidence, statement under Section 313 was recorded, but the accused has totally denied the evidence of prosecution witnesses. The accused himself adduced his evidence as DW.1 and no documentary evidence is produced by him.

7. Having hear

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