Criminal Petition No. 11391 of 2024 · The High Court
Case Details
- 1 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR CRIMINAL PETITION NO. 11391 OF 2024 WRIT PETITION NO. 17204 OF 2024 (GM-RES) C/W IN CRL.P No. 11391/2024 BETWEEN: THE DEPUTY DIRECTOR OF INCOME TAX (INVESTIGATION), UNIT-3(2), C R BUILDINGS-ANNEXE, QUEENS ROAD, BANGALORE – 560 001. (BY SRI. Y V RAVIRAJ and Sri M DILIP., ADVOCATES) …PETITIONER Digitally signed by SHARADAVANI B Location: High Court of Karnataka AND: 1. MALLIKARJUN/BALASUBRAMANYAM
Legal Reasoning
RESIDING AT SITE NO. 7, C/O. SRI OBUL REDDY, KRISHNA REDDY LAYOUT, HUSKUR KODI, OPP BHART PETROL BUNK, HUSKUR VIRGONAGAR, KATAMNALLUR, BENGALURU 560049 PAN CLOPR 0021B - 2 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR 2. THE STATE BY KALASIPALYA POLICE STATION 391, KUMBARAGUNDI ROAD, BEHIND SHIVA TALKIES, KALASIPALYAM NEW EXTENSION, KALASIPALYA, BENGALURU, KARNATAKA 560002 …RESPONDENTS (BY SRI. ARUNA SHYAM, SENIOR COUNSEL FOR SRI DARSHAN R, ADVOCATE FOR R1; SMT. SOWMYA R, HCGP FOR R2) THIS CRL.P. IS FILED U/S 482 CR.PC (FILED U/S 528 BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING TO REVOKE THE CONDITION IMPOSED WITH REGARD TO FILING OF INDEMNITY BOND VIDE ORDER DATED 23.05.2023 PASSED BY THE MMTC IN CRIME NO.38/2023, IN FAVOUR OF THE PETITIONER. (TRAFFIC VI) BANGALORE IN WP NO. 17204/2024 BETWEEN: 1. ALLURE VENTURES LLP LIMITED LIABILITY PARTNERSHIP FIRM, OFFICE AT BESIDE GARDEN CITY UNIVERSITY, BATTARHALLI, OLD MADRAS ROAD, KRISHNARAJAPURA, BANGALORE-560 049, REPRESENTED BY ITS MANAGER AUTHORIZED SIGNATORY, SURESH BABU POLASU. (BY SRI. ARUNA SHYAM, SENIOR COUNSEL FOR SRI DARSHAN R.,ADVOCATE) ...PETITIONER - 3 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR AND: 1. STATE OF KARNATAKA BY KALASIPALYA P.S., BANGALORE, REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BANGALORE-560 001. 2. DEPUTY DIRECTOR OF INCOME TAX (INVESTIGATION), UNIT-3 (2), C. R. BUILDINGS, ANNEXE, QUEENS ROAD, BANGALORE-560 001. ...RESPONDENTS (BY SMT. SOWMYA R, HCGP FOR R1; SRI Y V RAVIRAJ AND SRI M DILIP, ADVOCATES FOR R2) THIS W.P. IS FILED PRAYING TO QUASH ORDER DTD. 26.05.2023 PASSED IN FAVOUR OF THE R-2 IN CRIME NO. 38/2023 PASSED BY VI TH METROPOLITAN MAGISTRATE TRAFFIC COURT, BENGALURU PRODUCED AT ANNX-A AND ETC., THESE PETITIONS, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR ORAL ORDER In Crl.P.No.11391/2024 the petitioner seeks the following relief: - 4 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR "Wherefore it is respectfully prayed that this Hon'ble Court may be pleased to call for records and revoke the condition imposed with regard to filing of indemnity bond vide order dated 23.05.2023 passed by the MMTC (TRAFFIC VI) Bangalore in Crime No.38/2023, in favour of the petitioner in the interest of justice and equity." 2. In W.P. No.17204/2024 the petitioner seeks the following reliefs: 1. Issue writ of certiorari or any other appropriate writ or order or direction to quash order dated 26.05.2023 passed in favour of he respondent No.2 in Crime No.38/2023 passed by VIth Metropolitan Magistrate Traffic Court, Bengaluru produced at Annexure -A; in so far as petitioner is concerned. 2. Issue writ of mandamus or any other appropriate writ or order or direction in Crime No.38/2023 to pass orders on B Report filed by Respondent No.1 Police on 15.03.2023 pending - 5 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR before VIth Metropolitan Magistrate Traffic Court, Bengaluru produced at Annexure - S. 3. Issue writ of mandamus or any other appropriate writ or order or direction to accept the Application under Sections 451 and 457 Cr.P.C. dated 10.07.2023 in Crime No.38/2023 filed by petitioner pending before VIth Metropolitan Magistrate Traffic Court, Bengaluru, produced at Annexure - R; 4. Pass any other order/s that this Hon'ble Court deems fit in the interest of justice. 3. Heard learned Senior counsel for the petitioner in WP No.17204/2024 and learned counsel for the respondent - revenue and perused the material on record. 4. A perusal of the material on record will indicate that the respondent No. 1 - police in WP No.17204/2024 registered a FIR in Crime No.38/2023 against the writ - 6 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR petitioner for alleged offences punishable under Section 98 of the Karnataka Police Act. 5. In pursuance of the said FIR in Crime No.38/2023, the first respondent police authorities seized a sum of Rs.49,79,500/- (Rupees Forty-nine Lakh Seventy-nine Thousand and Five Hundred only). Prior to filing of the 'B' report, the Income Tax Department/Revenue filed an application under Sections 451 and 457 of Cr.P.C. 6. The petitioner in WP No.17204/2024 filed an application seeking release of the money. During pendency of the said application, a 'B' report came to be filed, to which the Income Tax Department / Revenue has filed a protest petition which is pending adjudication. Meanwhile the Income Tax Department / Revenue filed an application under Sections 451 and 457 seeking release of the seized cash which came to be allowed by the learned Magistrate vide order dated 23.05.2023. - 7 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR 7. W.P. No.17204/2024 is filed by Allure Ventures LLP Limited, in which the company/employer of the accused challenging the impugned order dated 23.05.2023 passed by the leaned Magistrate directing release of the aforesaid amount in favour of the Income Tax Department. Similarly, the Income Tax Department / Revenue has filed Crl.P. No.11391/2024 seeking relaxation of certain conditions contained in the impugned order. 8. A perusal of the aforesaid facts and circumstances and the material on record will indicate that in the first instance, pursuant to the registration of the FIR in Crime No.38/2023 the said police authorities seized the aforesaid sum of Rs.49,79,500/- (Rupees Forty-nine Lakh Seventy-nine Thousand and Five Hundred only) from the accused in relation to which an application under Sections 451 and 457 filed by the accused is still pending consideration. Further, in the meanwhile the learned Magistrate passed the impugned order directing release of - 8 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR the aforesaid amount in favour of the Income Tax Department. In this context, it is pertinent to note that simultaneously the Income Tax Department has initiated proceedings under the Income Tax Act against the company which culminated in an Assessment Order dated 28.03.2025 passed under Section 143(3) of the Income Tax Act followed by demand notice etc., demanding payment of tax including the cash seized during the investigation. It is also a matter of record that aggrieved by the said assessment order and demand, the writ petitioner - company has preferred an appeal which is pending before the Joint Commissioner of Income Tax. Under these circumstances, since the Income Tax Department has already passed an Assessment Order which is pending adjudication before the Appellate Authority, the question of directing the release of the seized cash in relation to Crime No.38/2023 would not arise since the claim of the Income Tax Department has culminated in an Assessment Order and the cash would - 9 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR not be required for the purpose of the said assessment proceedings. Under these circumstances, I am of the view that the impugned order dated 23.05.2023 assailed in Crl.P. No.11391/2024 and the impugned order dated 26.05.2023 assailed in W.P. No.17204/2024 deserves to be set aside. 9. This order is passed in the peculiar / special facts and circumstances of the instant case and shall not be treated as precedent for any purpose whatsoever. 10. In the result, both the W.P. No.17204/2024 is allowed. Crl.P. No.11391/2024 is hereby disposed of. Impugned order dated 23.05.2023 passed in Crime No.38/2023 by the learned Magistrate is hereby set aside and the application filed by the Income Tax Department is hereby rejected. [[ 11. In view of the setting aside of the impugned order, the question of learned Magistrate considering the - 10 - NC: 2025:KHC:25527 CRL.P No. 11391 of 2024 C/W WP No. 17204 of 2024 HC-KAR protest petition filed by the Income Tax Department would not arise in the facts and circumstances of the instant case. 12. Consequently, the learned Magistrate is directed to accept the 'B' report and close the proceedings immediately upon receipt of copy of this order. 13. The learned Magistrate is also directed to accept the application filed by the writ petitioner in W.P. No.17204/2024 under Sections 451 and 457 of Cr.P.C. and release the money in favour of the petitioner immediately upon receipt of copy of this order. Sd/- (S.R.KRISHNA KUMAR) JUDGE YKL List No.: 1 Sl No.: 2