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2026 Supreme(Online)(Ker) 16153
IN THE HIGH COURT OF KERALA AT ERNAKULAM
DR. KAUSER EDAPPAGATH, J
PAULSON@ PAULSON OLATTUPURAM – Appellant
Versus
STATE OF KERALA – Respondent
BAIL APPL. NO. 13520 OF 2025
For the Appellants/Petitioners: SHRI.K.N.ABHILASH, SHRI.SUNIL NAIR PALAKKAT, SHRI.RISHI VARMA T.R., SHRI.RITHIK S.ANAND, SHRI.SREEJITH A., SMT.TEENA M. ASHOK
For the Respondents: SRI.M.C. ASHI, SR. PP.
The court emphasized the necessity of interrogation for ongoing investigations and the potential hindrance to it if bail were granted.
Headnote:This application is filed under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 seeking pre-arrest bail for the accused in a case of fraud involving significant financial loss to a cooperative bank. The Court noted allegations of mismanagement and the necessity of the applicants' interrogation for investigation. The Court framed issues regarding the connection of the applicants to the crime and concluded that their release could hinder the investigation, thus denying the application for pre-arrest bail while allowing the possibility of surrendering before the investigating officer within a specified period. The application for bail is disposed of accordingly.
| Table of Content |
|---|
| 1. allegations of financial misconduct against cooperative bank directors. (Para 2 , 3) |
| 2. court’s reasoning for not allowing bail based on investigation needs. (Para 4 , 6 , 7) |
| 3. defense arguments regarding lack of connection to the crime. (Para 5) |
| 4. court’s directive on the bail application and surrender process. (Para 8) |
O R D E R
This application is filed under Section 482 of the Bharatiya Nagarik Suraksha Sanhita , 2023 (for short, BNSS ), seeking pre-arrest bail.
2. The applicants are the accused Nos.11 and 17 in Crime No.816/2025 of Mala Police Station, Thrissur District. The offences alleged are punishable under Sections 406 , 409 and 420 read with Section 34 of the Indian Penal Code , 1860.
3. The prosecution case, in short, is that the accused No.1 is the President and accused Nos. 2 to 21 are the Director Board members of the Mala Service Co-operative Bank. They committed fraud, criminal misappropriation, irregularities, mismanagement, and maladministration in the Bank by abusing their official positions, thereby causing the Bank to sustain a total loss of Rs. 10,07,69,991/-.
4. I have heard Sri.K.N.Abhilash, the learned counsel for the applicants and Sri.M.C.Ashi, the learned Senior Public Prosecutor. Perused the case diary.
5. The learned counsel for the applicants submitted that the applicants are innocent and have been falsely implicated in the above crime. The counsel further submitted that no materials are on record to connect the applicants with the alleged crime; hence, they are entitled to get bail. The learned Senior Public Prosecutor, on the other hand, submitted that the alleged incident occurred as a part of the intentional criminal acts of the applicants, and if they are released on bail at this stage, it will affect the course of the investigation.
6. The applicants are the Director Board members of the Society. The enquiry conducted under Section 65 of the Kerala Co-operative Societies Act prima facie reveals the involvement of the applicants. The report would reveal that the loan was granted without obtaining any security. It is also revealed that the loan was granted to fictitious persons on fictitious property. The interrogation of the applicants by the investigating agency is absolutely necessary for the purpose of investigation.
7. Therefore, I am of the view that this is not a fit case where the extraordinary jurisdiction vested with this Court under Section 482 of BNSS could be invoked.
8. However, if the applicants surrender before the Investigating Officer within seven days from today, the Investigating Officer shall interrogate them and, after interrogation, if the Investigating Officer is of the opinion that they have to be arrested, after recording the arrest, they shall be produced before the jurisdictional Magistrate on the same day itself. The application for bail, if any, filed by them shall be disposed of by the learned Magistrate on the same day itself as far as possible.
The bail application is disposed of with the above observation.
Sd/-
