- 1 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 21ST DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE UMESH M ADIGA CRIMINAL APPEAL NO. 100430 OF 2022 BETWEEN: KAMALA W/O. SHIVALINGAPPA HADAGALI AGED ABOUT 50 YEARS, OCC. HOUSEHOLD, RESIDING AT TEACHER COLONY, YARAGATTI, SAUDATTI TALUK, BELAGAVI DISTRICT-591126 …APPELLANT (BY SRI. MALLIKARJUNSWAMY B. HIREMATH, ADVOCATE) AND: STATE OF KARNATAKA ANTI CORRUPTION BUREAU BAGALKOTE BAGALKOT BY ITS DEPUTY SUPERINTENDENT OF POLICE REPRESENTED BY ITS SPL. PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA, DHARWAD BENCH-580001. …RESPONDENT (BY SRI. ANIL KALE, SPP.) THIS CRIMINAL APPEAL IS FILED U/S 11 OF CRIMINAL LAW (ORDINANCE) 1944, PRAYING TO, SET ASIDE THE ORDER DATED 01.06.2022 PASSED BY THE PRL. DISTRICT AND SESSIONS JUDGE, BAGALKOT IN SPL. CASE NO.61/2021 AND CONSEQUENTLY DISMISS THE APPLICATION DATED 30.03.2021 FILED UNDER SECTION 3 OF CRIMINAL LAW (AMENDMENT) ORDINANCE 1944, (HEREIN REFERRED AS ORDINANCE). THIS APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE UMESH M ADIGA Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 ORAL JUDGMENT (PER: THE HON'BLE MR. JUSTICE UMESH M ADIGA) This appeal is filed by the wife of the accused – Shivalingappa Hadagali, challenging the order dated 01.06.2022, passed by the Prl. District and Session Judge, Bagalkot in Spl. Case No.61/2021 registered by the respondent – Anti Corruption Bureau Bagalkote. 2. Brief facts of the case are that accused is Officer of PWD Karnataka in the cadre of AEE. He has been working the same cadre in Karnataka Nirawari Nigam Ltd., (for short “KNNL”). The Investigating officer (for short “I.O.”) of ACB received complaint against accused and it was registered in Cr. No.9/2018 for the offence under Sections 13(1)(e) and 13(2) of the Prevention of Corruption Act (for short “P.C. Act”). After investigation, he is charge sheeted for the said offences. The I.O. found that during check period accused acquired disproportionate properties to his known sources of income to the extent of Rs.68,92,420/- i.e., 52.47%. Accordingly, he was charge sheeted. - 3 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 3. During the investigation, I.O. had seized and recovered several movable and immovable properties said to be belonging to the accused and reported the same to the Court. The I.O. has filed an application dated 30.03.2021 (01.04.2021) under Section 3 of the Criminal Law (Amendment) Ordinance No.38/1944 (for short Ordinance) to pass absolute attachment of the properties mentioned in the schedule of the application. 4. There are in all 22 properties in the schedule. Accused filed objections to said application. After hearing both side, the trial Court passed the impugned order, attaching the properties at Sl.No.3 to 22 till further order. Same is challenged in the present appeal. 5. I have heard the arguments of learned counsel appearing for the appellant and learned Special Public Prosecutor for Karnataka Lokayukta. 6. The contention of the appellant is that, she is the wife of the accused and she is the absolute owner of the properties mentioned in the application at Sl.Nos.2, 7, 9, - 4 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 10, 11, 12, 13, 16 and 21. She also contended that the properties shown at Sl.Nos.3, 6 and 17 to 19 produced by her from her self earnings that is by drawing monthly scheme in Shri Guru Estate Agency Ilkal as well as the income accrued from the lands given to her by father. She further contends that as per Sections 4 and 5 of the Criminal Law (Amendment) Ordinance, 1944 (for short “Ordinance, 1944”) the person who is vacated by orders has to be heard. In this case admittedly, the name of the appellant is mentioned as owner of the property. However, the trial Court did not considered the same and on the application of the Investigating Officer and hearing the accused passed the impugned order. Therefore, the procedure followed by the trial Court is incorrect. With these reasons, she prayed to set aside the order. 7. Learned Addl. SPP supported the impugned order and contended that it does not call for any interference and if the order is vacated, there is likelihood that the appellant and accused may sell the properties causing hardship to the - 5 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 case of the prosecution, in the event, if the appeal needs to be allowed and the matter needs to be remitted back to the trial Court then till consideration of the said application, the order granted by the trial Court be continued. 8. From the rival contentions of the parties, the following points arose for consideration of this court: 1) Whether the order of attachment passed by the trial Court is tenable? MY FINDING ON THE ABOVE QUESTION: 9. Section 3 of the Ordinance, 1944 deals with filing of the application for attachment of the seized property in a criminal case. Section 4 of the Ordinance, 1944 give discretion of the concerned Court as well as procedures to be followed before considering the application filed under Section 3 of the Ordinance, 1944. If prima facie case is made out by the prosecution, then the concerned Court after hearing the affected parties shall pass appropriate orders. The Courts shall issue notice to the persons, whose property being attached and hear such persons and pass - 6 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 order. Section 5 of the Ordinance, 1944 deals with investigation of the objections, if any, filed by the third party, to whom the property belongs. 10. On perusal of the impugned order, the learned trial Judge has not strictly followed the procedure prescribed under Sections 3, 4 and 5 of the Ordinance, 1944. The court appears to be heard accused and passed orders. Admittedly property is standing in the name of applicant and no opportunities were given to the appellant herein in whose name properties are standing, to file objections and to heard her. The learned trial Judge did not follow the principles of natural justice before passing of the order. In these circumstances, the impugned order needs to be set aside and the matter needs to be relegated to the trial Court for hearing of the such application afresh after issuing notice to the appellant herein and interested persons, in whose name the properties are standing and who are claiming as owners of the said properties thereafter pass suitable orders, in accordance with law. - 7 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 11. The submission of the Addl. SPP needs to be considered. As apprehended by the Addl. SPP, if the property are sold by the concerned owner in whose name the properties are standing, it may cause prejudice to the case of the prosecution. To protect the interest of both the parties the order of attachment passed by the trial Court shall be extended till disposal of the application filed by the Investigating Officer. Accordingly, the point raised above is answered in the negative and I proceed to pass the following: ORDER (i) The Appeal is allowed. (ii) The impugned order passed by the learned Prl. District and Sessions Judge, Bagalkot in Spl.Case No.61/2021 attaching the properties at Sl.Nos.3 to 22 is set aside. (iii) The trial Court to reconsider the application filed under Section 3 of the Ordinance, 1944 as observed in the above order & keeping in mind the provisions of Sections 4 and 5 of the Ordinance, 1944, decide the - 8 - NC: 2025:KHC-D:3632 CRL.A No. 100430 of 2022 application after giving opportunity to the owners of the said properties as well as the appellants herein of being heard and pass order in accordance with law. (iv) Both the parties are directed to assist the trial Court for expeditious disposal of the application. (v) The trial Court shall dispose of the said application expeditiously. (vi) Till passing of such orders, attachment order passed by the trial Court in respect of the properties at Sl.Nos.3 to 22 shall continue. Sd/- (UMESH M ADIGA) JUDGE HMB LIST NO.: 1 SL NO.: 3