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Karnataka High Court

Sri. Rahul Chakrapani vs State By Karnataka on 19 September, 2024

Author: Mohammad Nawaz

Bench: Mohammad Nawaz

                                             -1-
                                                        NC: 2024:KHC:38743
                                                    CRL.A No. 1344 of 2024



                     IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                      DATED THIS THE 19TH DAY OF SEPTEMBER, 2024

                                        BEFORE
                       THE HON'BLE MR JUSTICE MOHAMMAD NAWAZ
                           CRIMINAL APPEAL NO. 1344 OF 2024
                BETWEEN:

                1.    SRI. RAHUL CHAKRAPANI
                      AGED ABOUT 32 YEARS
                      S/O SRI CHAKRAPANI NAMBOORI KANDATHIL
                      R/AT NAMBOORI KANDATHIL,
                      THERTHALLY P O
                      ALAKODE VIA KANNUR DISTRICT
                      KERALA - 670571.

                2.    SRI ANIL CHAKRAPANI
                      AGED ABOUT 36 YEARS
                      S/O SRI CHAKRAPANI NAMBOORI KANDATHIL
                      R/AT NAMBOORI KANDATHIL,
                      THERTHALLY P O
                      ALAKODE VIA KANNUR DISTRICT
                      KERALA - 670571.
Digitally
signed by
YAMUNA K L      3.    SMT SINDHU CHAKRAPANI
Location:             AGED ABOUT 40 YEARS
High Court of         D/O SRI CHAKRAPANI
Karnataka
                      W/O SRI SATHEESAN CHULLY
                      AGED ABOUT 40 YEARS
                      R/AT
                      NAMBOORI KANDATHIL
                      THERTHALLY P O
                      ALAKODE VIA KANNUR DISTRICT
                      KERALA - 670571.
                                                             ...APPELLANTS
                (BY SRI. BINU M.,ADVOCATE)
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                                                NC: 2024:KHC:38743
                                            CRL.A No. 1344 of 2024



AND:

1.    STATE BY KARNATAKA
      CEN CRIME P S MANGALURU CITY
      REPRESENTED BY SPP HIGH COURT OF KARNATAKA
      BENGALURU - 560001.
                                          ...RESPONDENT
(BY SRI. RAHUL RAI K., HCGP)

       THIS CRL.A. FILED U/S.16 OF KPIDFE ACT PRAYING TO
SET    ASIDE   THE   ORDER   DATED      14.06.2024     PASSED    IN
CRL.MISC.NO.113/2024 PASSED BY PRINCIPAL DISTRICT AND
SESSIONS       JUDGE,    D.K.,     MANGALURU         AND      GRANT
ANTICIPATORY BAIL TO THE APPELLANTS IN CR.NO.224/2023
FOR THE OFFENCE P/US/ 406,409,418,420,468,34 OF IPC AND
SEC.9 OF THE KARANTAKA PROTECTION OF INTERST OF
DEPOSITORS      IN   FINANCIAL     ESTABLISHMENT        ACT    2004
REGISTERED BY CEN CRIME P.S., MANGALURU CITY, WHICH IS
PENDING BEFORE THE LEARNED PRINCIPAL DISTRICT AND
SESSIONS COURT, MANGALURU CITY MANGALURU.

       THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY,
JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM:     HON'BLE MR JUSTICE MOHAMMAD NAWAZ



                        ORAL JUDGMENT

This appeal is filed against the order dated 14.06.2024 passed by the Court of Principal District and Sessions Judge, Dakshina Kannada, Mangaluru in Crl.Misc.No.113/2024, -3- NC: 2024:KHC:38743 CRL.A No. 1344 of 2024 wherein, the learned Sessions Judge has dismissed the petition filed under Section 438 of Cr.P.C.

2. Heard the rival contentions and perused the material on record.

3. FIR in Crime No.224/2023 was registered at CEN crime police station, Mangaluru city against one Royal Travancore Farmer Producer Company Limited and the appellants and others, for the offence punishable under Section 406, 409, 418, 420, 468 read with Section 34 of IPC and Section 9 of the Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004 .

4. The gist of the complaint lodged by one Jnanesha son of Amaresh is that the appellants being the directors of one Royal Travancore Farmer Producer Company Limited induced him and others to invest money promising good profits and thereafter, without returning the fixed deposits, cheated the complainant and other depositors.

5. As per complaint averments, complainant deposited a sum of Rs.11,000/- and the accused have collected about Mentioned as Karnataka Protection of Interest Depositors Exorbitant Act, 2004 in FIR. -4-

NC: 2024:KHC:38743 CRL.A No. 1344 of 2024 Rs.60,00,000/- from 600 depositors and cheated them, without returning the amount as assured.

6. The learned High Court Government Pleader has contended that there are several cases registered against appellants and therefore, they are habitual offenders and in the event of grant of anticipatory bail, they may not co-operate with the investigation and may flee from justice. He contended that in view of the allegations in the complaint, the appellants are required for custodial interrogation and therefore, they are not entitled for anticipatory bail.

7. The learned Sessions Judge refused to grant anticipatory bail to the appellants on the ground that there is a bar under Section 18(2) of KPIDFE Act for entertaining a petition filed under Section 438 of Cr.P.C.

8. The appellants claim to be innocent of the alleged charges levelled against them. It is contended that even if the entire allegations in the complaint are taken at their face value and accepted in its entirety, such allegations do not constitute any offence or make out a case against them for the alleged offences.

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NC: 2024:KHC:38743 CRL.A No. 1344 of 2024

9. The learned counsel for the appellants has contended that even accepting the allegations in the complaint that the complainant has deposited a sum of Rs.11,000/-, such deposit was made on 20.05.2023 and the maturity date is 20.09.2026, however he lodged the complaint on 07.12.2023 i.e., much prior to the date of maturity. He has filed a copy of the statement to show that on 12.08.2024, a sum of Rs.12,000/- was paid to the complainant.

10. The prosecution has to establish in due course that the appellants have fraudulently defaulted the repayment of deposit in maturity along with any benefit in the form of interest, profits, as promised by them. The fraudulent intention on the part of the appellants cannot be imputed at this stage. Though, the case was registered on 07.12.2023, so far the appellants are not arrested in this case. Offences alleged are not punishable with death or imprisonment for life. It is submitted by the learned counsel that in other cases registered against the appellants, they are enlarged on bail. Appellants have undertaken to offer sufficient surety to ensure their presence before the Court and to cooperate with the investigation.

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NC: 2024:KHC:38743 CRL.A No. 1344 of 2024

11. In the above facts and circumstances, by imposing suitable conditions, the relief sought by the appellants can be granted. Accordingly, the following:

ORDER
i) Appeal is allowed.
     ii)      Impugned order is set-aside.


     iii)     In the event of arrest of the appellants / accused

No.2 to 4 in Crime No.224/2023 of CEN Crime Police Station, Mangaluru City, they shall be released subject to following conditions:
(a) They shall execute a bond for a sum Rs.2,00,000/- (Rupees Two Lakhs Only) each with two sureties for the likesome, out of which one shall be a local surety.
              b)   They    shall    furnish    proof   of   their
     residential     address       and   shall     inform    the
Investigation Officer/Court, if there is any change in the address.
c) They shall be available for the purpose of investigation as and when required and shall co-operate with the investigation.
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NC: 2024:KHC:38743 CRL.A No. 1344 of 2024

d) They shall not tamper with the prosecution witnesses/evidence in any manner.

e) They shall be regular in attending the Court proceedings.

Records received in this case shall be sent back forthwith.

Sd/-

(MOHAMMAD NAWAZ) JUDGE PHM/LDC List No.: 1 Sl No.: 20