APHC010251282022 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3396] MONDAY,THE SIXTH DAY OF OCTOBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE DR JUSTICE VENKATA JYOTHIRMAI PRATAPA WRIT PETITION No. 14729/2022 Between: 1. THE MUTHOOT FINANCE LTD, V.R.COLONY BRANCH, KURNOOL, KURNOOL DISTRICT, ANDHRA PRADESH, REP. BY ITS CLUSTER MANAGER A.NAGA RAJU S/O.A.NAGAMUNI AGE . 39 YEARS, R/O. KURNOOL, KURNOOL DISTRICT, AP. ...PETITIONER AND 1. THE STATE OF ANDHRA PRADESH, REPRESENTED BY ITS PRINCIPAL SECRETARY, HOME DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, GUNTUR, ANDHRA PRADESH 2. THE DIRECTOR GENERAL OF POLICE, STATE OF ANDHRA PRADESH, BUCKINGHAMPETA, VIJAYAWADA, ANDHRA PRADESH 520002. 3. THE SUPERINTENDENT OF POLICE, KURNOOL DISTRICT, KURNOOL, ANDHRA PRADESH. 4. THE STATION HOUSE OFFICER, KURNOOL IV TOWN POLICE STATION, KURNOOL DISTRICT, ANDHRA PRADESH 5. SHAIK SUHAIL, S/O.S.MAQBOOL AHMED AGED 32 YEARS, OCC . SERVICE D.NO.30/144, CHITARI STREET KURNOOL, ANDHRA PRADESH. 6. NARESH PAKIRABAD, S/O.NAGOJI RAO AGED 36 YEARS, OCC TERRITORY MANAGER IIFL FINANCE, H.No.16-11 SAIBABAPETA, NADIKOTKUR MANDAL KURNOOL DISTRICT, ANDHRA PRADESH. ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ, order or a direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the 4th Respondent in issuing the Notice dated 05.05.2022 in respect of loan account Nos.MHL 000498,MHL/000455,MHL/000497,MHL/000473,MHL/000397,MHL/000499, 2 MHL/000404, MSL/016007, TOS/000010 and MDL/000593, and personal visits and extending threats to the employees of the Petitioner to hand over the gold ornaments in respect of loan amounts sanctioned to 5th respondent without any manner of right under the guise of registration of FIR No.235/2022 under Sections 403, 407, 408, 420 r/w 34 of IPC and interference of the 4th respondent with the day-to-day business activities of the Petitioner's Company without following due process of law as illegal, unwarranted, unsustainable, arbitrary, unconstitutional, against Law as well as principles of natural justice and consequently set aside the notice dated.05.05.2022 of 4th Respondent and direct the Respondents not to interference with the business activities of the Petitioner without following due process of law and pass Counsel for the Petitioner: 1. K B RAMANNA DORA Counsel for the Respondent(S): 1. GP FOR HOME 2. T SREEDHAR 3 The Court made the following: ORDER: This Writ Petition is filed under Article 226 of the Constitution of India by the Petitioners seeking the following relief: “.... to issue a Writ, order or a direction, more particularly one in the nature of Writ of Mandamus, declaring the action of the 4th Respondent in issuing the Notice dated 05.05.2022 in respect of loan account Nos. MHL 000498, MHL/000455, MHL/000497, MHL/000473,MHL/000397,MHL/000499,MHL/000404, MSL/016007, TOS/000010 and MDL/000593, and personal visits and extending threats to the employees of the Petitioner to hand over the gold ornaments in respect of loan amounts sanctioned to 5th respondent without any manner of right under the guise of registration of FIR No.235/2022 under Sections 403, 407, 408, 420 r/w 34 of IPC and interference of the 4th respondent with the day-to-day business activities of the Petitioner's Company without following due process of law as illegal, unwarranted, unsustainable, arbitrary, unconstitutional, against Law as well as principles of natural justice and consequently set aside the notice dated.05.05.2022 of 4th Respondent and direct the Respondents not to interference with the business activities of the Petitioner without following due process of law and pass ...” 2. Brief facts of the case are as follows: The petitioner is a Non-Banking Financial Institution dealing with grant of loans to the customers by pledging gold ornaments as security. That being so, the Petitioner-Company provided gold loans to Respondent No.5 from time to time and altogether, Rs.23,37,800/- was granted to him by pledging gold ornaments. The respondent No.5 is the customer of 4 petitioner-company since 2017 and used to avail and close the loan amounts. Respondent No.5 is the Branch Manager of IIFL, Kurnool. Basing on the complaint given by respondent No.6, who is the Territory Manager of IIFL Finance, Nandikotkur Mandal, Kurnool District, a case in Crime No.235 of 2022 of IV town Police Station, Kurnool was registered for the offences under Sections 403, 407, 408 and 420 read with 34 IPC wherein, Respondent No.5 herein is Accused No.1. It is alleged against the A1 that he along with other accused committed misappropriation by stealing the gold jewellery weighing 1285.08 gms, pledged by various customers in their company and pledged some of the ornaments with the Petitioner – Company. The Respondent No.5/A.1 allegedly confessed that the ornaments pledged by him with the Petitioner-Company are the property that belongs to the De facto complainant in the above crime. On that, Respondent No.4 issued a Notice dated 05.05.2022 to the Petitioner-Company to handover the pledged ornaments to the Police. Questioning the impugned notice, this Writ Petition is filed by the Petitioner. 3. Heard Sri Mallikarjun, learned counsel representing Sri K.B.Ramanna Dora, learned counsel for the Petitioner and Sri V.Farooq, learned Assistant Government Pleader for Home. 5 4. Learned counsel for the Petitioner would submit that the subject matter of this Writ Petition is squarely covered by the Order the Hon’ble Supreme Court on 19.02.2024 in Special Leave Petition (Crl.) No.9539 of 2023 and placed on record the said order and would submit that similar orders may be passed by disposing of this Writ Petition. 5. Learned Assistant Government Pleader would submit that the Court may pass appropriate orders. 6. Considering the submissions made, the Writ Petition is disposed of, setting aside the Notice dated 05.05.2022, with the following observations. (i) The Petitioner shall produce the pledged ornaments as and when called by the Investigating Officer for inspection of the same and also permit taking photographs and making the Panchanama, if so required. (ii) The Petitioner shall produce the pledged ornaments before the concerned Court as and when directed by the concerned Court in relation to Crime No.235 of 2022 of IV Town Police Station, Kurnool District. (iii) The Petitioner shall not handover the pledged ornaments to the pledgors (Respondent / A.1) or any other person representing him or permit redemption of the pledges, without prior permission from the concerned Court. 6 (iv) The Petitioner shall not sell, dispose of, or part with possession of the pledged ornaments without prior permission from the concerned Court. There shall be no order as to costs. Pending applications, if any, shall stand closed. DR.JUSTICE VENKATA JYOTHIRMAI PRATAPA Mjl /* 7 HON’BLE DR. JUSTICE VENKATA JYOTHIRMAI PRATAPA Writ Petition No. 14729 of 2022 06.10.2025 Mjl/*