- 1 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR. JUSTICE VENKATESH NAIK T CRIMINAL PETITION NO.102008 OF 2025 (438 OF Cr.PC/482 OF BNSS) BETWEEN: 1. KIRAN SANGAPPA BAVALATTI, AGE: 30 YEARS, OCC: SELF EMPLOYED IN PRIVATE FIRM. 2. SANGAPPA SHIVALINGAPPA BAVALATTI, AGE: 51 YEARS, OCC: LABOURER. 3. MRUTYUNJAY SHEESHAIL KADADEVAR, AGE: 29 YEARS, OCC: FARMER. 4. SHIVAPUTRAYYA M. MATAPATI, AGE: 28 YEARS, OCC: LABOURER. 5. HANAMANT M. DALAWAI, AGE: 30 YEARS, OCC: BANK EMPLOYEE, ALL ARE R/O. BUDINI P.M, TQ. MUDHOL, DIST. BAGALKOT-587121. …PETITIONERS (BY SHRI ABHILASH HANAMANNAVAR FOR SHRI SOURABH HEGDE, ADVOCATE) AND: THE STATE OF KARNATAKA, R/BY. HCGP, HIGH COURT OF KARNATAKA, DHARWAD BENCH, THROUGH MUDHOL POLICE STATION, IN MUDHOL TALUK, DIST. BAGALKOT-587121. …RESPONDENT (BY SHRI JAIRAM SIDDI, HCGP) THIS CRIMINAL PETITION IS FILED U/S.438 OF CR.P.C. (U/S.482 OF BNSS, 2023) SEEKING TO GRANT ANTICIPATORY BAIL TO THE PETITIONERS/ACCUSED NO.1 TO 5 PURSUANT TO AN FIR REGISTERED BY MUDHOL POLICE STATION CRIME NO.85/2025 FOR THE OFFENCES PUNISHABLE UNDER SECTIONS 408, 420, 504, 506, 34 OF IPC AND ON THE FILE OF ADDL. CIVIL JUDGE (SR. DN.) AND CJM COURT MUDHOL, IN THE ENDS OF PROMOTING JUSTICE. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by RAKESH S HARIHAR Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE VENKATESH NAIK T) Heard learned counsel Sri Abhilash Hanamannanavar for Sri Sourabh Hegde, learned counsel for petitioners and Sri Jairam Siddi, learned High Court Government pleader for respondent – State. 2. This petition is filed under Section 438 of Cr.P.C. (Section 482 of Bharatiya Nagarik Suraksha Sanhita, 2023) by the petitioners seeking anticipatory bail in Crime No.85/2025 of Mudhol Police Station for the offences punishable under Sections 408, 420, 504, 506 read with Section 34 of IPC. 3. Brief facts of the case of the prosecution are as under: Petitioner No.1 has been working as Assistant and Computer Operator in a Milk Production Co-operative Society situated at P.M.Budni village from the year 2018. Since 01.04.2019 till 10.04.2024 accused No.1 shown the less quantity of the milk which was supplied by the formers to the - 3 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 society and utilized the remaining milk for his own by showing the remaining milk in his name and in the names of accused Nos.2 to 5 and thus misutilized subsidy price which quantifies at Rs.9,70,000/-, which was given by the Government in order to disburse the same to eligible customers, by depositing the said amount of Rs.9,70,000/- in his account. But accused No.1 misutilized said funds and diverted to his account and to the account of accused Nos.2 to 5 and thereby committed criminal breach of trust and cheated the formers and society. 4. After receipt of the said information, the first informant lodged the complaint, which leads to registration of FIR and investigation. 5. Apprehending their arrest at the hands of respondent - Police, the petitioners approached the Trial Court seeking anticipatory bail, wherein, the learned I Additional District and Sessions Judge, Bagalakote sitting at Jamkhandi rejected the said application on 21.05.2025 in - 4 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 Crl.Misc.No.5075/2025. Being aggrieved the same, the petitioners are before this Court. 6. Learned counsel for the petitioners contended that the petitioners are falsely implicated in the crime and they are innocent of the offences alleged and they are ready to co-operate with the investigating agency, if they are released on bail. Hence, he prayed to allow the petition. 7. Learned High Court Government Pleader orally contended that there is a prima facie case against the petitioners and they have misappropriated the amount of Rs.9,70,000/-. Hence, prayed for dismissal of the petition. 8. Perused the material available on record. It appears that, the complainant made allegation against accused No.1 alleging that, accused No.1 was working as Assistant and Computer Operator in Milk Production Co- Operative Society since the year 2018 and he has misappropriated Rs.9,70,000/- between 01.04.2019 and 10.04.2024. Hence, complaint has been lodged. It appears that entire allegations is against accused No.1, who is - 5 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 misappropriated an amount of Rs.9,70,000/-. As per the investigation records, it reveals that accused No.1 shown the remaining milk in the name of petitioner Nos.2 to 5 and withdrawn incentives for a sum of Rs.9,70,000/-, which was given by the Government to the Customers. At this juncture, prima facie material shows that, there is no allegation against accused Nos.2 to 5 with regard to misappropriation of the fund of the society and entire allegation is against accused No.1 alone. Admittedly, the misappropriation of funds, specifically transferring Rs.9,70,000/- to the account of accused Nos.2 to 5 without authorization, is a serious offence with potential legal consequence including criminal charges. The account holder receiving the funds may also face legal repercussion, if they were complicit in the misappropriation. However, at this juncture, petitioner Nos.2 to 5 have made out case for grant of anticipatory bail. 9. Considering the nature and gravity of the offence, and the fact that investigation is pending, bail application of accused No.1 is liable to be rejected. However, accused - 6 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 Nos.2 to 5 are liable to be enlarged on bail. Accordingly, this Court proceed to pass the following: ORDER The criminal petition is allowed in part. The criminal petition in respect of accused No.1 is hereby rejected. Petitioner Nos.2 to 5 – accused Nos.2 to 5 are ordered to be released on bail in the event of their arrest in Crime No.85/2025 of Mudhol Police Station on following conditions. (i) Petitioner Nos.2 to 5 shall execute a personal bond for a sum of Rs.2,00,000/- each with a surety of the likesum to the satisfaction of the Investigating Officer/SHO. (ii) Petitioners Nos.2 to 5 shall surrender before the Investigating Officer within 15 days from today and they shall cooperate with investigation agency. (iii) Petitioner Nos.2 to 5 shall mark their attendance before the Investigating Officer/SHO on first Sunday of every month in between 10:00 a.m. and 5:00 p.m. for a - 7 - HC-KAR NC: 2025:KHC-D:7749 CRL.P No. 102008 of 2025 period of six months, till the filing of final report, whichever is earlier. (iv) Petitioner Nos.2 to 5 shall not threaten the complainant or tamper the prosecution witnesses and they shall furnish information available with them. Violation of any of the conditions, shall entitled for cancellation of bail. Sd/- (VENKATESH NAIK T) JUDGE EM/ CT-AN List No.: 1 Sl No.: 33