Yes, I think the Kotwal was very smart. When he heard the man's wife calling his name out loudly, he immediately ran in that direction. He must have realised that there was a problem and he needed to go to the house from which the noise was coming. After reaching the house, he noticed the hole in the wall and understood the situation. He stealthily entered the house and caught the thief without giving him a chance to escape. This shows that the Kotwal was indeed smart.