- 1 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 IN THE HIGH COURT OF KARNATAKA AT DHARWAD DATED THIS THE 18TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE S.RACHAIAH CRIMINAL PETITION NO.104570 OF 2025 (439(CR.PC)/483(BNSS)) BETWEEN: SHRI PRABHAKAR S/O. MALLIKARJUN BYADAGI, AGE. 34 YEARS, OCC. CLERK CUM PIGMY AGENT, R/O. MOTEBENNUR, TQ. BYADAGI, DIST. HAVERI-581 106. …PETITIONER (BY SRI R.H.ANGADI, ADVOCATE.) AND: THE STATE OF KARNATAKA, (THROUGH BYADAGI POLICE STATION) R/BY THE STATE PUBLIC PROSECUTOR, HIGH COURT OF KARNATAKA, DHARWAD BENCH AT DHARWAD-580011. …RESPONDENT (BY SRI JAIRAM SIDDI, HIGH COURT GOVERNMENT PLEADER.) THIS CRIMINAL PETITION IS FILED UNDER SECTION 439 OF THE CRIMINAL PROCEDURE CODE, 1973 (SECTION 483 OF BHARATIYA NAGARIK SURAKSHA SANHITA, 2023), PRAYING TO ALLOW THE PETITION AND ENLARGE THE PETITIONER ON BAIL WHO IS ARRAYED AS ACCUSED, PENDING ON THE FILE OF CIVIL JUDGE AND JMFC COURT, BYADAGI, IN CONNECTION WITH BYADAGI P.S. CRIME NO.85/2025, FOR THE ALLEGED Digitally signed by SAMREEN AYUB DESHNUR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 OFFENCES PUNISHABLE UNDER SECTIONS 406 AND 420 OF IPC, TO MEET THE ENDS OF JUSTICE, BY ALLOWING THE PRESENT PETITION AND ETC.,. THIS CRIMINAL PETITION COMING ON FOR ORDERS THIS DAY, ORDER IS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.RACHAIAH) The petitioner is the sole accused in Crime No.85/2025 of respondent police, registered for the offences punishable under Sections 406 and 420 of IPC, is before this Court seeking for regular bail. Factual matrix of the case: 2. It is the case of the prosecution that, the petitioner was working as CEO of Veera Rani Kittur Chennamma Kshemabhivruddi, Sahakari Sangha, Motebennur. The allegation made against him is that, he has raised loan in the name of his relatives for a sum of Rs.95,73,184/-. When it was not repaid, when the other members have enquired about the repayment of the said loan, and asked the borrowers of the said unit and enquired - 3 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 that whether they borrowed the loan or not, they came to know that the loan was disbursed in the name of his relatives, however, it was not actually being handed over to them and he has misappropriated the said loan. The pettier has neither repaid the said amount to the bank not handed over the said amount to the borrowers. Therefore, a complaint came to be registered against him for the aforesaid offences. The investigation is under progress. Therefore, the petitioner is before this Court seeking for regular bail. 3. Heard Sri R.H.Angadi, learned counsel for the petitioner and Sri Jairam Siddi, learned High Court Government Pleader for the respondent State and perused the material placed before the Court. 4. The submission of the learned counsel for the petitioner is that, the petitioner was working as CEO of the respondent bank. The loan sanctioning authority is a committee constituted under the said Bank. It has to decide - 4 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 and sanction the loan to the applicants. Though, it is alleged that the relatives of the CEO borrowed the loan, there is no prohibition that they were not absolved on obtaining the loan from the bank. It is further stated that the Bank instead of taking action against the borrowers for repayment of loan, unnecessarily made the petitioner liable for repayment of the loan which is nothing but using coercive method to recover the amount from the petitioner. When there is a provision for the bank to enforce the contract to recover the amount from the borrower, keeping the petitioner in judicial custody for longer period would not serve any purpose. Moreover the petitioner is a law abiding citizen, he would abide the conditions imposed by this Court in the event of his release on bail. 5. Per contra, learned High Court Government Pleader for the respondent State vehemently submitted that the amount of Rs.95,73,184/- has been sanctioned to the - 5 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 relatives of the petitioner, which is against the bye-law of the said society or co-operative bank. Therefore, the complainant has lodged a complaint against the petitioner. The petitioner has misused his power and position and committed fraud against the society. Therefore, it is not appropriate to grant him bail. Making such submissions, he prays to reject the bail. 6. Having considered the said submissions and also perused the averments made in the complaint, it appears from the record that, initially, the petitioner was working as a clerk cum pigmy collector. Thereafter, he was promoted as CEO of the bank. The allegations made against him that that, he has sanctioned the loan to 12 members for a sum of Rs.95,73,184/- who are said to be borrowers. However, the loan was not being repaid properly. Having learnt that something happened to the said borrowers the committee asked the borrowers to repay the amount. However, the borrowers did not agree that they borrowed money from the bank. On enquiry, the present petitioner confessed that the - 6 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 loan was sanctioned in the name of fictitious persons and he has undertaken to repay the said amount. 7. Be that as it may, the offences which are leveled against the petitioner are neither punishable with death nor imprisonment for life. The petitioner is in judicial custody since two month. If suitable conditions are imposed, that would take care of the apprehension of the prosecution. Hence, it is appropriate to grant bail by imposing suitable conditions. 8. Hence, I proceed to pass the following: ORDER i) The petition is allowed. ii) The petitioner is ordered to be enlarged in bail in Crime No.85/2025 of respondent police, on executing his personal bond for a sum of ₹1,00,000/- (One Lakh - 7 - HC-KAR NC: 2025:KHC-D:15831 CRL.P No. 104570 of 2025 Rupees), with one surety for the like sum, to the satisfaction of the Trial Court. iii) The petitioner shall cooperate with the investigation till filing of the charge sheet. iv) The petitioner shall appear before the trial Court on all hearing dates without fail. v) The petitioner shall not threaten the prosecution witnesses. vi) The petitioner shall not commit similar or any other criminal offences till disposal of the case. In case, if the petitioner violates any of the conditions enumerated above, liberty is reserved to the prosecution to file necessary application for cancellation of bail. Sd/- (S.RACHAIAH) JUDGE MRK / CT: UMD List No.: 1 Sl No.: 36