Magistrates cannot pass orders under Sections 451 and 457 of the CrPC to transfer funds from a third party's bank account to a complainant without first issuing notice and hearing the account holder, as such actions violate the right to property and principles of natural justice.

WRIT PETITION NO. 7357 OF 2026 (GM-RES)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA R/W 528 OF THE BNSS, 2023 PRAYING TO ISSUE A WRIT OF CERTIORARI, OR ANY OTHER APPROPRIATE WRIT, ORDER, RULE, OR DIRECTION, QUASHING AND SETTING ASIDE THE ORDER DATED 8 SEPTEMBER 2025 PASSED BY THE COURT OF THE ADDITIONAL CIVIL JUDGE AND JMFC, KUNDAPURA IN CRIME NO. 96 OF 2025 (ANNEXURE A) AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

The petitioner is before this Court seeking the following prayer:

1. Issue a writ of certiorari, or any other appropriate writ, order, rule, or direction, quashing and setting aside the order dated 8 September 2025 passed by the Court of the Additional Civil Judge and JMFC, Kundapura in Crime No.96 of 2025 (Annexure A) insofar as petitioner.

2. Issue any other writ, order, rule, or direction, as this Hon’ble Court may deem fit, proper, and necessary in the interests of justice, equity, and good conscience, including protecting the Petitioner from any further proceedings, action, or orders in connection with the disputed transaction.”

2. Heard Sri Adit Nilesh Shah, learned counsel appearing for petitioner and Sri B.N.Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1.

3. The issue is whether any order prejudicial to the interest of the petitioner could have been passed without hearing the petitioner.

4. Learned counsel appearing for the petitioner submits that the issue in the lis stands answered by the judgment rendered by this Court in the case of Sri. Rahul Chari and another Vs. State of Karnataka in W.P.No.2865/2022 dated 17.10.2022, wherein it is held as follows:

“The petitioners are before this Court calling in question order dated 23-12-2021 passed by the I Additional Chief Metropolitan Magistrate, Bengaluru in Crime No.256 of 2021 whereby the amount from the personal account of the 1st petitioner is transferred to the account of the 2nd respondent.

2. Brief facts that lead the petitioners to this Court, as borne out from the pleadings, are as follows:-

The 1st petitioner is the whole time Director of “PhonePe Private Limited”/2nd petitioner. The 2nd petitioner is a pioneer in digital payments and financial services and is also engaged in the business of providing digital payment platform services enabling end users and customers to make payment and merchant/business entities to accept payment by card which is popularly known as “Unified Payment Interface” (‘UPI’). The 2nd petitioner is the Company and as observed hereinabove claimed to be a leading player in the digital payment ecosystem.

3. The 2nd petitioner maintains a bank account with respondent No.3/Yes Bank Limited (‘Nodal Account Bank’ for short), a Banking Company established under the Companies Act, 1956. The Nodal Account Bank is expected to carry out business for the nodal account holder i.e., PhonePe which is for a special purpose created for receiving monies from the participating Banks and remitting to specific merchants, in terms of the Reserve Bank of India mandate. The 2nd petitioner is thus an intermediary receiving on line payments and those payments getting into nodal account and payments to the seller moving out from the nodal account instantaneously.

4. The 2nd respondent one Ms. Madhuri R.K. attempts to order some items online through her bank account on 02.04.2021 and in order to enquire about the order, contacts customer care of e-commerce app on the number obtained on Google website. On doing so, an unknown person appears to hav