- 1 - HC-KAR NC: 2025:KHC:41625 CRL.P No. 10994 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 10994 OF 2025 BETWEEN: SHRI GUNDRATHI GANESH GOUD S/O LATE G. NARAYANA GOUD, AGED ABOUT 58 YEARS, H.NO.5-99/A, THADIPARTHI, GOPALPET, MAHABUDNAGAR, TELANGANA-509 206, MOBILE NO.9440544112, ADHAR NUMBER: 8073 0645 7808. …PETITIONER (BY SRI. DHIRAJ A.K., ADVOCATE) AND: DIRECTORATE OF ENFORCEMENT GOVERNMENT OF INDIA, REPRESENTED BY ITS ASSISTANT DIRECTOR, MANGALURU SUB ZONAL OFFICE, 2ND FLOOR, 4-212/16, “VISTAAR” COMMERCIAL COMPLEX, YEYYADI, AIRPORT ROAD, KONCHADY, MANGALURU-575 008. …RESPONDENT (BY SRI. JAYAKARA SHETTY H., ADVOCATE) THIS CRL.P IS FILED U/S.482 CR.P.C (FILED U/S.528 BNSS) PRAYING TO ALLOW THIS CRIMINAL PETITION, THEREBY SETTING ASIDE THE ORDER DATED 05.04.2025 PASSED IN PCR NO./2025 (ARISING OUT OF ECIR/MGSZO/02/2022 NOW PENDING IN SPL.C.NO.60/2025) Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:41625 CRL.P No. 10994 of 2025 BY THE III ADDL. DISTRICT AND SESSIONS JUDGE, SPECIAL JUDGE, FOR TRIAL OF CASES UNDER PMLA, DAKSHINA KANNADA, MANGALURU TAKING COGNIZANCE FOR OFFENCE U/S 3 PUNISHABLE U/SEC.4 OF PMLA ACT, THEREBY ISSUING SUMMONS TO THE PETITIONER IS CONCERNED. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ ORAL ORDER Apart from other grounds urged in the petition, it is also contended by the learned counsel for the petitioner that proviso to Section 223 of the BNSS, 2023 has not been followed by the learned Special Judge before taking cognizance and issuing summons to the accused persons. 2. Petitioner is accused No.7 in the PCR filed by the respondent/Directorate of Enforcement, for the offence under Section 3 r/w Section 70, punishable under Section 4 of the Prevention of Money Laundering Act, 2002 (for short ‘PMLA’). The learned Special Judge, vide impugned order dated 5.4.2025 was pleased to take cognizance for the offence punishable under Section 3 r/w 4 of PMLA and - 3 - HC-KAR NC: 2025:KHC:41625 CRL.P No. 10994 of 2025 directed to register a case against accused Nos.1 to 8 for the said offence. 3. The Hon’ble Apex Court in ‘Kushal Kumar Agarwal v. Directorate of Enforcement’ reported in 2025 SCC online SC 1221 has held at para 6 that ‘the proviso to sub-section (1) of Section 223 puts an embargo on the power of the Court to take cognizance by providing that no cognizance of an offence shall be taken by the Special Judge without giving the accused an opportunity of being heard’. 4. It is not in dispute that in the case on hand, no opportunity of hearing was given by the learned Special Judge to the accused before taking cognizance of the offence mentioned in the complaint. In view of the proviso to sub-section (1) of Section 223 of BNSS, 2023 and the dictum of the Hon’ble Apex Court noted supra, the petition succeeds. Hence, the following: - 4 - HC-KAR NC: 2025:KHC:41625 CRL.P No. 10994 of 2025 ORDER I. Petition is allowed. II. The Order dated 5.4.2025 in Spl.C.No.60/2025 passed by the III Additional District and Sessions Judge and Special Judge for trial of cases under P.C.Act and Special Judge for trial of cases under PMLA, Dakshina Kannada, Mangaluru, is set aside. III. The learned Special Judge is directed to proceed with the matter from the stage of receiving the complaint filed by the respondent, in accordance with law. I.A.No.1/2025 is disposed of. Sd/- (MOHAMMAD NAWAZ) JUDGE TL List No.: 1 Sl No.: 57