Kerala High Court Orders Arrest Of Lawyer, Her Husband Accused Of Misappropriating ₹40 Lakh From Client

The Kerala High Court on Tuesday (October 21) gave an interim direction to the Station House Officer, Negumangad (5th respondent) to conduct a thorough investigation in a case where an advocate (6th respondent) has been accused of misappropriating around Rs. 40 lakh rupees from her client.

After noting that the offence was attracted, prima facie, the Court asked the SHO to effect the arrest of the lawyer, and her husband, who are accused in the case.

Dr. Justice Kauser Edappagath observed:

"It is a case where the settlement amount in a case was handed over by a client to advocate he trusts was misappropriated. The offence alleged against the 6th respondent and her husband are prima facie attracted. However, as rightly argued by the petitioner, the 5th respondent has failed to even apprehend the accused so far. In these circumstances, an interim direction is given to the 5th respondent to conduct a thorough investigation in the matter. Needless to say, the arrest of the accused is necessary for the purpose of the investigation. The 5th respondent shall proceed to arrest the accused as well."

The petitioner in the case was a respondent before the Family Court in the cases which were filed by his wife. The respondent lawyer was engaged as his counsel in the cases. During the pendency of the proceedings, the cases were amicably settled. Thereafter, as directed by the lawyer, the petitioner transferred a sum of ₹40 Lakhs to the account of the respondent's husband for handing over to the petitioner's wife.

It was alleged that this said amount was misappropriated by the 6th respondent and her husband. This led to the petitioner filing complaint before the the Superintendent of Police and an FIR was registered. However, since no proper investigation was conducted, the petitioner approached the High Court.

The 6th respondent also appeared through counsel and filed an affidavit, in which she admitted that the petitioner had transferred Rs. 40 Lakhs to her husband's account. She further stated that the said amount was utilised by her husband for his business purpose. It was stated that thereafter, Rs. 11.2 lakhs was returned and it was also undertaken that the balance of 28.8 lakhs would be transferred within 10 days. 

Today, when the matter was taken up, the court was told that the 6th respondent could not mobilize the funds so far.

Noting that the allegation raised is serious in nature, the Court thought it appropriate that the SHO investigate the matter thoroughly and effect arrest of the lawyer and her husband, who were accused in the crime.

The petition is moved by Advocate K.R. Sunil.

Case No: WP (Crl.) No. 1261 of 2025

Case Title: Hashim v. State Police Chief and Ors.