Phonepe Private Limited v. State of Karnataka

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE V SRISHANANDA WRIT PETITION No.110 OF 2022 (GM-RES) BETWEEN:

PHONEPE PRIVATE LIMITED A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT 1956, HAVING ITS REGISTERED ADDRESS AT UNIT NO.001, GROUND FLOOR, BOSTON HOUSE SUREN ROAD, OFF. ANDHERI-KURLA ROAD, ANDHERI (EAST) MUMBAI -400 093

AND ITS CORPORATE OFFICE AT OFFICE-2, FLOOR 4,5,6,7 WING A, BLOCK A, SALARPURIA SOFTZONE SERVICE ROAD, GREEN GLEN LAYOUT BELLANDUR BANGALORE -560 103 REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. VIJAY ARORA …PETITIONER (BY SMT.MANASI SHARMA FOR SRI. NITIN RAMESH, ADVOCATES)

AND:

1. STATE OF KARNATAKA BY NORTH EAST CEN POLICE BENGALURU – 560 021

2. M/S YES BANK LIMITED NORTH BLOCK-DB DIVISION

Digitally signed by R MANJUNATHA Location: HIGH COURT OF KARNATAKA

YES BANK HOUSE PRABHAT NAGAR OFF WESTERN EXPRESS HIGHWAY SANTACRUZ-EAST MUMBAI - 400055

¶3SMT. PADMINI W/O N. SUNDARAM AGED ABOUT 60 YEARS R/AT A-001, PURVA PAVILION KEMPAPURA, HEBBALA AMRUTHAHALLI, BENGALURU – 560 024 …RESPONDENTS

(BY SRI SURYA MUKUNDARAJ, HIGH COURT GOVERNMENT PLEADER FOR R1; SRI VIKRAM UNNI RAJAGOPAL, ADVOCATE FOR R2; SRI ANIL KUMAR.B, ADVOCATE FOR R3 –ABSENT)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA R/W SECTION 482 CODE OF CRIMINAL PROCEDURE PRAYING TO QUASH THE IMPUGNED ORDER IN CR NO.455/2021 PASSED BY THE I ADDITIONAL CHIEF METROPOLITAN MAGISTRATE DATED

26.10.2021 AT BENGALURU ANNEXURE-A THEREBY REVERSING THE AMOUNT TRANSFERRED TO THE 3RD RESPONDENT ACCOUNT BACK TO THE NODAL ACCOUNT HELD BY THE PETITIONER WITH RESPONDENT NO.2 AND ETC.,

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE V SRISHANANDA

ORAL ORDER

This Court has already heard the arguments of learned counsel for the petitioner, learned counsel for respondent No.2 and learned Additional Public Prosecutor.

¶2Matter is listed to today for providing a last opportunity to address arguments on behalf of respondent No.3. However, learned counsel for respondent No.3 failed to appear before the Court.

¶3Petition is filed by a non-party to the proceedings under Articles 226 and 227 of the Constitution of India r/w Section 482 of the Code of Criminal Procedure with the following prayer: "(a) Issue a writ of certiorari, quashing the impugned Order in Cr.No.455/2021, passed by the I Additional Chief Metropolitan Magistrate, dated October 26, 2021 at Bengaluru (Annexure-A) thereby reversing the amount transferred to the respondent No.3's account back to the Nodal Account held by the petitioner with respondent No.2.

(b) Issue a writ of mandamus, directing the respondent No.1-Police to undertake proper

investigation as per the procedures established under law."

¶4Case of the present petitioner is that, bank account of the petitioner came to be freezed by the Investigation Agency, though petitioner had no nexus whatsoever with the alleged crime in respect of Crime No.455/2021 registered by North East CEN Crime Police Station, DCP North East Division, Bengaluru City.

¶5In Crime No.455/2021 pending on the file of the I Additional Chief Metropolitan Magistrate, Bengaluru, an application came to be filed under Sections 451 and 457 of the Code of Criminal Procedure by the respondent No.3 and said application was allowed by the Order dated 26.10.2021. Operative portion of the said order reads as under: "The application filed by the petitioner by name Padmini, W/o N.Sundaram u/S 451 and 457 of Cr.P.C is hereby allowed.

Accordingly, the office is hereby directed to issue intimation to the concerned I.O. to direct the YES Bank to defreeze the amount of Rs.80,000/- from account No.002261100000025 and to transfer the

said amount to the account of the petitioner namely Bank of Baroda Account No.73940100001983.

Accordingly, the petitioner is hereby directed to execute indemnity bond for Rs.80,000/- with a condition to indemnifying the said amount against third party claim and shall deposit the said amount as and when directed by this Court.

Office to issue release order after execution of indemnity bond.

Put up after final report."

¶6Grievance of the present petitioner is that, account of the petitioner got freezed and a sum of ₹80,000/- was taken out from the account of the petitioner and handed over to the complainant who is respondent No.3.

¶7Such an order is not only illegal but also without following the principles of natural justice, inasmuch as before passing such an order, petitioner was not notified and had not been heard in the matter.

¶8As such, petitioner prays for setting aside the aforesaid order dated 26.10.2021 and direct the third respondent to re-deposit ₹80,000/- to the account of the petitioner.

¶9Learned counsel for respondent No.2 has no objection to pass appropriate orders and Additional Public Prosecutor could not justify the order passed by the learned Trial Magistrate.

¶10Having heard the arguments on behalf of the parties, this Court noted that, before passing the order dated 26.10.2021, learned Trial Magistrate ought to have found out as to whose account has been freezed and what amount is drawn from the freezed account to be paid to respondent No.3.

¶11Without notifying the petitioner and passing the order dated 26.10.2021 has thus resulted in miscarriage of justice.

¶12Hence, the following: ORDER

(i) Petition allowed.

(ii) The Order dated

26.10.2021 passed in Cr.No.455/2021 on the file of the I Additional Chief

Metropolitan Magistrate, Bengaluru is hereby quashed.

(iii) However, the direction with regard to repayment of the amount as per the order dated

26.10.2021 is concerned, petitioner is at liberty to approach the Magistrate seeking suitable direction, including reasonable interest.

(iv) If any such application is filed by the petitioner, same shall be disposed of by the learned Trial Magistrate in a time bound manner, not later than 31st December 2026.

Sd/- (V SRISHANANDA) JUDGE

kcm List No.: 1 Sl No.: 73 CT:VRR