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2026 Supreme(Online)(Kar) 28891

THE HIGH COURT OF KARNATAKA
M.Nagaprasanna, J
Santhosh Kumar M – Appellant
Versus
State Of Karnataka – Respondent
CRL.P No. 4838 of 2026



Advocates:
For the Appellants/Petitioners: Haleema Ameen, Ashok Kumar Shetty K
For the Respondents: B.N. Jagadeesha

Seized cash, where ownership is undisputed and there are no rival claimants, should be released to the rightful owner on interim custody under Section 503 BNSS, subject to conditions such as panchnama, photography, and bonds, to prevent undue hardship and ensure the property is not left unused.

Headnote:(A) Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 - Section 503 - Criminal Procedure Code (Cr.P.C), 1973 - Section 451 - Interim custody of seized property - Seized cash - Petitioner claimed ownership of cash seized from accused - Court held that seized property belongs to the victim/petitioner - Courts below rejected application for release - High Court directed release following Apex Court guidelines - Necessity to balance fair trial with the right of the owner to possess the property - Excessive conditions on non-alienation are restrictive and unreasonable - (Paras 2, 4, 8 and 9).

(B) Interim Custody - Judicial discretion - When property has no evidentiary value, keeping it in police station is unsustainable - Secondary evidence (photographs, panchnama) is sufficient for trial - Need for expeditious disposal of applications for interim custody to prevent loss of value of seized property. (Para 8).

Facts of the case:
The petitioner filed an application seeking the release of his seized cash amounting to Rs.11,00,000/- which was in the custody of the respondent police. The lower courts rejected the application erroneously despite the fact that the seized cash belonged to the petitioner and there were no rival claimants involved.

Findings of Court:
The High Court held that keeping the cash in police custody indefinitely serves no purpose. Following the principles in the Sunderbhai Ambalal Desai case, the court determined that the petitioner is entitled to the interim custody of the seized cash subject to appropriate conditions regarding production during the trial and executing an indemnity bond to secure the value.

Issues: Whether the court can release the seized currency to the owner on interim custody when there are no rival claimants and how to balance the requirements of a fair trial with the owner's right to possession?

Ratio Decidendi: If there are no rival claimants to the property seized during the investigation, the court should grant interim custody to the rightful owner after preparing a detailed panchnama, taking photographs, and securing the value through bonds, rather than keeping the property in custody, which would cause undue hardship for the owner.

Result: Petition allowed.

Table of Content
1. granting interim custody of seized cash to the owner when no rival claimant exists. (Para 1 , 2 , 3 , 5)

THIS CRL.P IS FILED U/S.482(FILED U/S.528 BNSS) OF CR.P.C PRAYING TO MODIFY THE ORDER DATED 29.01.2026 IN CRL.RP.NO.302/2025 AND DIRECT RESPONDENT POLICE TO RELEASE THE REMAINING AMOUNT OF RS.11,00,000/- ON THE FILE OF THE VI ADDL.DIST. AND SESSIONS COURT AT D.K MANGALURU LYING IN INDUS IND BANK ACCOUNT NO.201035634 AS PER REPORT DATED 25.11.2025 OF INVESTIGATING OFFICER IN CR.NO.68/2025 OF CEN CRIME P.S. IN FAVOUR OF THE PETITIONER.

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

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

Heard Smt. Haleema Ameen, learned counsel appearing for the petitioner, Sri. B.N. Jagadeesha, learned Addl. SPP appearing for the respondent and have perused the material on record.

2. The petitioner is before this Court calling in question two orders, one of the learned Magistrate and one of the Revisional Court, seeking release of an amount seized by the police during investigation quantified at Rs.11,00,000/-. Both the Courts have concurrently denied the relief to the petitioner by rejecting the applications filed under Sections 497 and 503 of the BNSS. It is an admitted fact that the amount belongs to the petitioner, as it was seized from the hands of the accused.

3. In identical circumstances, this Court in W.P.No.4606/2026 dated 03.03.2026, has held as follows:

"3. The story would commence from the journey of the petitioner and his wife in a Car, which undertook from Bangalore to Bellary to register a land and to finalise the marriage arrangements of their daughter. They stopped at Udupi Garden Hotel, at Challakere, finished their lunch and when they come back to the Car, neither the Car, nor the cash that was in the Car found and the driver was also found absconding. Immediately a complaint comes to be registered in Crime No.396/2025. The very next two days, i.e., on 26.08.2025 and 27.08.2025, the police trace out the driver, seized the cash and registered the recovered cash in P.F.Nos.238 and 240 of 2025. Seizure of the cash is reported to the learned Magistrate on 27.08.2025.

4. The petitioner then files an application under Section 503 of the BNSS seeking interim custody of the seized cash. On 21.10.2025, the accused - driver is said to have rendered a voluntary statement admitting that the seized cash belongs to the petitioner. The application is objected to by the respondent - police and charge sheet is filed on the basis of the said statement. Though there is no rival claimant before the concerned Court for the cash in P.F.Nos.238 and 240 of 2025, the petitioner's application filed under Section 503 of the BNSS comes to be rejected by the concerned Court, in terms of the order dated 17.10.2025. The petitioner then challenges the said order by filing criminal revision petition in Crl.R.P.No.108/2025, seeking interim custody of cash by obliterating the order of the learned Magistrate, which also comes to be rejected in terms of the order dated 15.12.2025. It is these two orders that has driven the petitioner to this Court in the subject petition.

5. Learned counsel for the petitioner would submit that the petitioner in the memorandum of petition as well as before the concerned Court has clearly indicated as to how he secured the said cash and for what purpose they were travelling with that said cash. He would submit that accused himself appeared before the concerned Court and admits that the cash belongs to the petitioner and he was the one who had stolen it. Despite there being no rival claim, the concerned court has not released the cash in favour of the petitioner.

6. Learned Additional State Public Prosecutor would however, submit that the cash in the event is required adequate security need be furnished by the petitioner, but, would admit the fact that there is no rival claimant to the said cash.

7. I have given my anxious co

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