- 1 - NC: 2025:KHC:9003 CRL.P No. 10848 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 10848 OF 2023 BETWEEN: KEERTHI T R S/O RAMAKRISHNAIAH, AGED ABOUT 27 YEARS, R/AT THIMMANADODDI VILLAGE, HUNASANAHALLI POST, KODIHALLI HOBLI, KANAKAPURA TALUK, RAMANAGARA DISTRICT-562119. …PETITIONER (BY SRI. CHETAN KUMAR, ADVOCATE FOR SRI. MADESH V.M., ADVOCATE) AND: 1. STATE OF KARNATAKA BY KANAKAPURA POLICE STATION, REPRESENTED BY STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, BENGALURU-560001. 2. SMT. SHEELA W/O LATE VENUKUMAR, AGED ABOUT 55 YEARS SHIVANANKARESHWARA COMPLEX, RSSN, KODIHALLI ROAD, KANAKAPURA TOWN, RAMANAGAR-562117, KARNATAKA. …RESPONDENTS (BY SRI. RAJATH SUBRAMANYA, HCGP FOR R1; SRI. A.V. RAMAKRISHNA, ADVOCATE FOR R-2) Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:9003 CRL.P No. 10848 of 2023 THIS CRL.P IS FILED U/S 482 OF THE CR.PC PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN C.C.NO.1150/2023 ARISING OUT OF CR.NO.112/2023, FOR THE OFFENCE P/U/S 381, 120B, 417, 420, 406 R/W 34 OF IPC, REGISTERED BY THE KANAKAPURA TOWN POLICE, PENDING BEFORE THE HON'BLE PRL. CIVIL JUDGE AND JMFC COURT, KANAKAPURA. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. The petitioner‑accused No.5, who has been charge‑sheeted for offences punishable under Sections 120B, 406, 420, 417, and 381 read with Section 34 of the Indian Penal Code (IPC), is before this Court seeking relief. 2. The prosecution alleges that the complainant is the President of VSSN Bank, Kanakapura. In 2018, accused No.1 was appointed as Chief Executive Officer. Surendra, the accountant of VSSN Bank, Kanakapura, informed the complainant and the Board of Directors that some customers alleged that the hypothecated gold ornaments were not being returned despite repayment of their loan accounts. On 26 June 2023, the complainant convened an emergency meeting, and upon inquiry, accused No.1 disclosed that he had utilized the customers’ gold ornaments along with accused Nos.2 to 4 by hypothecating them with Manipuram Finance and other private finance companies for a period of one year. The allegation against accused No.5 is that he facilitated the - 3 - NC: 2025:KHC:9003 CRL.P No. 10848 of 2023 hypothecation of the misused gold ornaments with the finance company. 3. The learned counsel for the petitioner, the learned High Court Government Pleader for respondent No.1, and the learned counsel for respondent No.2 were heard. 4. The misappropriation of the gold ornaments is alleged against accused Nos.1 to 4, who, after misappropriating the gold ornaments, pledged them so that the finance company could obtain a gold loan. In his voluntary statement recorded under Section 161 of the Cr.P.C., accused No.1 stated that he visited accused No.5, who was working at CSB Finance Company, requested him to accept the gold ornaments for pledging without causing any problems, and that he had paid a commission to accused No.5. 5. During the course of the investigation, respondent No.1 recovered receipts from accused No.5 in relation to the pledging of gold ornaments; however, the said receipts do not pertain to gold ornaments pledged with the complainant‑Society. Except for the confession statement of co‑accused, i.e., accused No.1, there is no corroborative material to substantiate that the petitioner‑accused assisted the other accused in pledging the stolen gold articles with the finance company. In the absence of any corroborative material, the petitioner‑accused cannot be prosecuted for the aforesaid offences solely on the basis of a confession statement, which is inadmissible under Section 25 of the Indian Evidence Act. In such circumstances, the continuation of - 4 - NC: 2025:KHC:9003 CRL.P No. 10848 of 2023 criminal proceedings would amount to an abuse of the process of law. 6. Accordingly, the petition is allowed, and the impugned proceedings in CC No.1150/2023 pending on the file of the learned Principal Civil Judge and JMFC Court, Kanakapura, insofar as they relate to the petitioner‑accused No.5, are hereby quashed. 7. The Trial Court shall proceed against the other accused without being influenced by any of the observations made in this order, which are made solely for the purpose of this petition. Sd/- (HEMANT CHANDANGOUDAR) JUDGE BKM