The Court observed that the investigating agency must approach the competent court under Sections 106 and 107 of the BNSS to seek appropriate directions for the production of such property. The Court accordingly quashed the notice issued to Bajaj Finance Limited.

Justice Sandeep Sharma remarked that: “...this Court finds force in the submission of learned counsel for the petitioner that appropriate remedy, if any, available to the investigating agency is to approach the competent Court of law under Section 106 and Section 107 of the BNSS, but certainly the petitioner herein, which is a Non-Banking Financial Company cannot be compelled to produce pledged property in terms of notice, if any, issued under Section 94 of Bharatiya Nagarik Suraksha Sanhita.”

Background:

Bajaj Finance Limited had advanced a loan to a borrower against gold ornaments and jewellery pledged as security. The ornaments were subsequently found to be stolen, and the borrower allegedly disclosed during the investigation that the stolen property had been pledged with the company.

The police issued a notice under Section 94 of the BNSS, 2023, directing Bajaj Finance to produce the ornaments. Challenging the notice, the company approached the Himachal Pradesh High Court, contending that the police could not compel the production of the pledged property without following the procedure prescribed under Sections 106 and 107 of the BNSS.

The Himachal Pradesh High Court observed that Section 94 of the BNSS, 2023, primarily concerns the production of documents, electronic communications and communication devices, and cannot be invoked to compel the production of allegedly stolen pledged gold ornaments.

The Court held that the investigating agency must approach the competent court under Sections 106 and 107 of the BNSS for appropriate directions. It further observed that Bajaj Finance Limited, as the pledgee, must be given an opportunity to explain its position.

Accordingly, the Court quashed the impugned notice while granting liberty to the investigating agency to approach the competent court in accordance with law.

Date of Decision: 03.09.2026