Karnataka High Court Allows State's Revision Against Order Defreezing Bank Accounts in Lokayukta Case. Court holds that Section 457 Cr.P.C. applications for defreezing of accounts are not maintainable during pendency of trial under Prevention of Corruption Act, 1988.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Prosecution
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Case Note & Summary

The State of Karnataka, through Lokayukta Police, filed a revision petition under Section 397(1) r/w 401 Cr.P.C. challenging an order dated 10.04.2015 passed by the Sessions and Special Judge, Koppal in Spl.Case(PC) No.6/2013. The respondents, Jagadeeshwarappa (a Motor Vehicle Inspector) and his wife Smt. J.P. Sunanda, had filed two separate applications under Section 457 Cr.P.C. seeking defreezing of six bank accounts (three each) which were attached by the Lokayukta Police during investigation. The trial court allowed those applications. The State contended that the applications under Section 457 Cr.P.C. were not maintainable because the attachment was under the Prevention of Corruption Act, 1988, which is a special statute, and the general provisions of Cr.P.C. would not apply. The High Court agreed, holding that Section 457 Cr.P.C. applies only to properties seized by police during investigation but not to properties attached under the PC Act. The court set aside the trial court's order and dismissed the respondents' applications.

Headnote

A) Criminal Procedure Code - Section 457 Cr.P.C. - Defreezing of Attached Properties - Applicability - The applications under Section 457 Cr.P.C. for defreezing of bank accounts attached during investigation under the Prevention of Corruption Act, 1988 are not maintainable as the attachment is governed by the special provisions of the PC Act, not by the general provisions of Cr.P.C. - Held that the trial court erred in allowing such applications during pendency of trial (Paras 2-5).

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Issue of Consideration

Whether the Sessions and Special Judge was justified in allowing applications under Section 457 Cr.P.C. for defreezing of bank accounts which were attached during investigation under the Prevention of Corruption Act, 1988.

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Final Decision

The revision petition is allowed. The order dated 10.04.2015 passed by the Sessions and Special Judge, Koppal in Spl.Case(PC) No.6/2013 is set aside. Consequently, the applications filed by the respondents under Section 457 Cr.P.C. are dismissed.

Law Points

  • Section 457 Cr.P.C. does not apply to properties attached under Prevention of Corruption Act
  • 1988
  • Attachment under PC Act is governed by Section 3 of the Act
  • Trial court cannot order defreezing of accounts during pendency of trial
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Case Details

2017 LawText (KAR) (01) 27

Crl.RP.No.100048/2016

2017-01-23

S.N. Satyanarayana

Sri. Mallikarjunswamy B. Hiremath (for petitioner), Sri. Neelendra D. Gunde (for respondents)

State of Karnataka, Lokayukta Police Station, Koppal

Jagadeeshwarappa S/o Virupakshappa Pattanad and Smt. J.P. Sunanda

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Nature of Litigation

Criminal revision petition against order allowing defreezing of bank accounts under Section 457 Cr.P.C.

Remedy Sought

State sought to set aside the order dated 10.04.2015 passed by Sessions and Special Judge, Koppal allowing applications for defreezing of accounts.

Filing Reason

The trial court allowed applications under Section 457 Cr.P.C. for defreezing of six bank accounts attached during investigation under Prevention of Corruption Act.

Previous Decisions

Sessions and Special Judge, Koppal allowed applications under Section 457 Cr.P.C. for defreezing of accounts on 10.04.2015.

Issues

Whether applications under Section 457 Cr.P.C. are maintainable for defreezing of accounts attached under Prevention of Corruption Act, 1988.

Submissions/Arguments

Petitioner (State) argued that Section 457 Cr.P.C. does not apply to properties attached under PC Act, which is a special statute. Respondents argued that the trial court correctly allowed the applications as the accounts were seized during investigation.

Ratio Decidendi

Section 457 Cr.P.C. applies only to properties seized by police during investigation, not to properties attached under the Prevention of Corruption Act, 1988, which is a special statute. Therefore, applications under Section 457 Cr.P.C. for defreezing of accounts during pendency of trial are not maintainable.

Judgment Excerpts

The brief facts leading to this revision petition are as under: The records would indicate that Lokayukta Police conducted raid on the residence of respondents, wherein...

Procedural History

Lokayukta Police conducted raid and attached bank accounts of respondents. Respondents filed applications under Section 457 Cr.P.C. for defreezing. Sessions and Special Judge, Koppal allowed the applications on 10.04.2015. State filed revision petition under Section 397(1) r/w 401 Cr.P.C. before High Court of Karnataka, Dharwad Bench.

Acts & Sections

  • Code of Criminal Procedure, 1973 (Cr.P.C.): 397(1), 401, 457
  • Prevention of Corruption Act, 1988 (PC Act): 3
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High Court Karnataka High Court Allows State's Revision Against Order Defreezing Bank Accounts in Lokayukta Case. Court holds that Section 457 Cr.P.C. applications for defreezing of accounts are not maintainable during pendency of trial under Prevention of Corr...
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