IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20^TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 24720 OF 2025 (GM-RES)

BETWEEN:

1 . MANAPPURAM FINANCE LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING REGISTERED OFFICE AT MANAPURAM HOUSE, A.O. VALAPAD TRISSUR DISTRICT, KERALA - 680567.

HAVING ONE OF ITS BRANCH OFFICE AT NEAR NEW BUS STAND, SHADOL BRANCH-3733 MADHYA PRADESH DULY REPRESENTED BY ITS AUTHORIZED REPRESENTAVIE MR. MOHAN BABU G.

...PETITIONER (BY SRI. ANISH JOSE ANTONY, ADVOCATE)

Digitally signed by AL BHAGYA AND:

Location: HIGH COURT OF KARNATAKA

1 . STATE OF KARNATAKA BY STATION HOUSE OFFICER BELLANDUR PS REPRESENTED BY SPP HIGH COURT OF KARNATAKA BANGALORE-560001.

2 . PUSHKAR RAJ AGED ABOUT 52 YEARS S/O PRADEEP KUMAR FLAT NO.004, WEST TRINITY WOODS, SARJAPURA MAIN ROAD BELLANDUR, BANGALORE-560 103.

…RESPONDENTS (BY SRI. RAHUL RAI, HCGP)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO CALL FOR THE RECORDS OF ANNEXURE-A ORDER DATED 12.07.2025 IN CC NO. 23809/2025 PASSED BY THE XLI ADDL. CHIEF METROPOLITAN MAGISTRATE AT BANGALORE INVOKING SECTION 498 OF BNSS, 2023 TO AN EXTENT OF MAKING THE INTERIM CUSTODY OF ARTICLES SEIZED FROM THE PETITIONER VIDE ANNEXURE-D DATED 22.03.2025 AND E DATED 20.03.2025 GRANTED TO THE R2 ABSOLUTE AND ETC.

THIS WRIT PETITION COMING ON FOR FURTHER HEARING, THIS DAY ORDER WAS MADE THEREIN, AS UNDER:

CORAM: HON’BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

The captioned petition challenges the order dated

12.07.2025 passed in C.C.No.23809/2025, whereby the learned Magistrate, after recording the settlement in the Lok-Adalat, made the interim custody of certain gold articles (seized in P.F.No.43/2025) absolute in favour of respondent No.2.

2. The petitioner, a Non-Banking Financial Company (NBFC) which advanced loans against pledged gold seeks that the said portion of the order (making interim custody absolute) be set aside and that the matter be remitted to the learned Magistrate to hold an enquiry under Section 452 of Criminal Procedure Code, 1973 ('Cr.P.C.' for short) and to pass appropriate orders after giving notice to all persons claiming interest.

3. The petitioner is an established NBFC with nationwide presence. The petitioner advanced loan to Sri. Pankaj Kumar Mishra against pledges of gold ornaments. A complaint came to be registered in Crime No.95/2025 alleging offence under Section 306 of BNS, 2023. On 19.03.2025, the Investigating Officer issued notice under Section 94 of BNSS, 2023 and seized the gold articles (recorded as P.F.No.43/2025). Interim custody of the seized articles was given during investigation and, following settlement before the Lok-Adalat, the trial Court made the interim custody absolute in favour of respondent No.2, without hearing the petitioner. The petitioner contends it is a bona fide pledgee and has a civil right/claim to possession which was not adjudicated.

4. The petitioner's counsel reiterating the grounds has placed reliance on the following judgments:

1) Nevada Properties (P) Ltd. vs. State of Maharashtra, (2019) 20 SCC 119;

2) N.Madhavan vs. State of Kerala - (1979) 4 SCC 1;

3) Hiralal Babulal Soni vs. State of Maharashtra - 2025 SCC Online SC 437;

4) Yes Bank vs. State of UP and Others - Criminal Appeal No.207/2023;

5) Muthoot Fincorp Ltd. vs. The SHO and Others -

Criminal Appeal No.1026/2024;

6) Shimoga District Central Co-operative Bank Limited, Shimoga vs. Karnataka Food and Civil Supplies Corporation, Bangalore - 2003 SCC Online Kar 831;

7) Kasturi Lal Ralia Ram Jain vs. State of UP - 1964 SCC Online SC 38;

8) Union Territory of Ladakh vs. Jammu & Kashmir National Conference - 2023 SCC Online SC 1140;

9) Shabna Abdulla vs. Union of India - 2024 SCC Online SC 2057;

10) Union of India vs. Dayanand - (2008) 10 SCC 1.

5. Learned counsel appearing for the respondent/State has also countered by producing the following judgments:

1) Muthoot Fincorp Limi