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2025 Supreme(Online)(Kar) 10512

KARNATAKA HIGH COURT
, J
SRI. RAJU. S – Appellant
Versus
THE STATE OF KARNATAKA – Respondent
Criminal Petition | C.C.No.8477/2023



Advocates:
For the Appellants/Petitioners:
For the Respondents: HCGP

Seized cash must be released within a month, ensuring judicial discretion is exercised promptly to prevent misuse.

Headnote:(A) Code of Criminal Procedure, 1973 - Sections 451 and 457 - Seizure of cash - Petition to release seized amount - Court held that seized cash should not be retained by police beyond a month - Interim custody directed to be handed over to petitioners with conditions for proper panchanama and bond. (Paras 5, 6, 7)

(B) Judicial discretion - Powers under Section 451 CrPC must be exercised promptly to prevent misuse or unnecessary custody of seized items. (Paras 6, 7)

Facts of the case:
The petitioner sought to quash an order rejecting the application for release of cash seized by police, citing a precedent where it was ruled that seized cash should be returned within a specified time frame.

Findings of Court:
The order rejecting the release was quashed, and the cash was ordered to be returned to the petitioner with conditions.

Issues: Whether the Magistrate’s order rejecting the application for release of seized cash was legally tenable.

Ratio Decidendi: The court reiterated the necessity of timely release of seized cash, emphasizing the principles established in prior judgments that limit the retention of such items by law enforcement.

Result: Petition allowed, and the order of the Magistrate was quashed.

Table of Content
1. arguments presented by both petitioner and respondent. (Para 2 , 4)
2. petitioner seeks the release of seized cash. (Para 3)
3. court's observations on the necessity of timely release of seized items. (Para 5 , 6)
4. court's reasoning for quashing the magistrate's order. (Para 7)
5. final order allowing the petition and setting conditions for release. (Para 8)

ORAL ORDER

In this petition, petitioner seeks the following reliefs:

“(a) Issue a writ of certiorari or other appropriate writ or order seeking to set aside the order dated 02.01.2024 passed by learned II ACJM, Bengaluru, in C.C.No.8477/2023 vide Annexure – C and to release the amount of Rs.5,54,400/- (Rupees five lakhs fifty four thousand four hundred only) in favour of the petitioner, which was seized under PF No.42/2023 dated 26.03.2023.

(b) Pass such other order/s as this Hon’ble Court deem fit under the facts and circumstances of the case, in the interest of justice.”

2. Heard learned counsel for the petitioner and learned HCGP for the respondents and perused the material on record.

3. A perusal of the material on record will indicate that pursuant to the complaint dated 26.03.2023 lodged by the respondent – police, the learned Magistrate granted permission for investigation and FIR in Crime No.85/2023 was registered against the petitioner pursuant to which, charge sheet was also filed by the respondent – police on 05.07.2023, which is pending in C.C.No.8477/2023. In the said proceedings, petitioner filed an application under Sections 451 and 457 Cr.P.C . seeking release of a sum of Rs.5,54,400/- by way of cash seized from the petitioner under PF No.42/2023 dated 26.03.2023. The said application having been opposed by the respondent, the Trial Court proceeded to pass the impugned order rejecting application, assailing the said impugned order and seeking allowing of the application filed by the petitioner by placing reliance upon the judgment of this Court in Kiran Kumar A.S., and another Vs. State of Karnataka and another – Crl.P.No.3873/2023 dated 05.06.2023, petitioner is before this Court by way of the present petition.

4. Per contra, learned counsel for the respondent submits that there is no merit in the petition and that the same is liable to be dismissed.

5. As rightly contended by learned counsel for the petitioner, respondent – police would not be entitled to retain the seized cash for more than a period of 15 days or one month and later it should be released and interim custody handed over either to the victim or the complainant.

6. In Kiran Kumar’s case supra, the Co-ordinate Bench of this Court has held as under:

“The petitioners are before this Court seeking the following prayers:

"i. To set aside the order dated 28.04.2023 passed by the Hon'ble Metropolitan Magistrate Traffic Court-2 at Bengaluru in Crime No.84/2023 registered by the Amruthahally P.S., for offence P/U/S 98 of Karnataka Police Act, 1963.

ii. Consequently allow the application filed by the petitioners/applicants under Section 451 r/w 457 of Cr.P.C and direct the respondent police to release the amount which was seized and subjected in the PF No.40/2023 dated 27.03.2023 an amount of Rs.10,36,000/-(Rupees Ten Lakhs Thirty Six Thousand Only) to the petitioners for interim custody and bonafide use on such terms and conditions in the ends of justice."

2. Heard Sri. Sunil Kumar.S., learned counsel appearing for the petitioners, Smt. K.P.Yashoda., learned High Court Government Pleader appearing for respondent No.1 and have perused the material on record.

3. Petitioner Nos.1 and 2 are accused Nos.1 and 2 in Crime No.84/2023, registered for an offence punishable under Section 98 of the Karnataka Police Act, 1963. After registration of the crime, the police have seized an amount of Rs.10,36,000/- from the hands of the petitioners. After the said seizure, the petitioners move an application under Sections 451 and Section 457 of the Cr.P.C . before the learned Magistrate seeking release of th

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