Bombay High Court Dismisses Revision Against Setting Aside Attachment and Sale in NI Act Case Due to Non-Compliance with Section 82 CrPC Procedure. Proclamation Procedure Under Section 82 CrPC Must Be Strictly Followed Before Attachment Under Section 83 CrPC; Failure to Comply Renders Attachment and Sale Invalid.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The case involves a criminal revision application filed by Dharampal (applicant) against the judgment and order of the Additional Sessions Judge, Udgir, dated 9th April 2009, which allowed an appeal under Section 86 of the Code of Criminal Procedure (CrPC) and set aside the attachment and sale of certain property belonging to respondent No.2 (Shahuraj Navtakke). The applicant had purchased the attached property in a court auction. The background is a criminal case under Section 138 of the Negotiable Instruments Act, 1881, filed by respondent No.5 (Satish Biradar) against respondent No.2 and his firm (respondent No.1). After being released on bail, respondent No.2 absconded, leading to issuance of non-bailable warrants and ultimately a proclamation under Section 82 CrPC on 1st March 2006. The proclamation was published in a newspaper on 24th May 2006. However, the record did not contain the original proclamation, and the mandatory procedure under Section 82 CrPC was not followed. Consequently, the learned Magistrate ordered attachment and sale of respondent No.2's property under Section 83 CrPC. The applicant purchased the property in auction. Respondent No.2 filed an appeal under Section 86 CrPC, which was allowed by the Additional Sessions Judge, setting aside the attachment and sale. The applicant challenged this order in revision. The legal issue was whether the attachment and sale were valid given the non-compliance with Section 82 CrPC. The court analyzed Section 82 CrPC, which requires a written proclamation to be published in a specific manner, including public reading in a conspicuous place. The court found that the mandatory procedure was not followed, as the original proclamation was missing and there was no evidence of compliance with the publication requirements. The court held that the procedure under Section 82 is mandatory and must be strictly complied with before ordering attachment under Section 83. Since the procedure was not followed, the attachment and sale were invalid. The court also noted that the appeal under Section 86 CrPC was maintainable. The decision was to dismiss the revision application, upholding the order of the Additional Sessions Judge setting aside the attachment and sale.

Headnote

A) Criminal Procedure - Proclamation under Section 82 CrPC - Mandatory Procedure - The court held that the procedure prescribed under Section 82 of the Code of Criminal Procedure, 1973 for issuance of proclamation is mandatory and must be strictly followed before ordering attachment under Section 83. In this case, the proclamation was published in a newspaper but the original proclamation was not on record and the mandatory procedure was not followed, rendering the subsequent attachment and sale invalid. (Paras 3-5)

B) Criminal Procedure - Attachment and Sale under Section 83 CrPC - Validity - The court held that attachment and sale of property under Section 83 of the Code of Criminal Procedure, 1973 is a drastic step and can only be ordered after strict compliance with Section 82. Since the proclamation procedure was not followed, the order of attachment and sale was set aside. (Paras 4-6)

C) Negotiable Instruments Act - Section 138 - Criminal Case - The underlying case was under Section 138 of the Negotiable Instruments Act, 1881, filed by respondent No.5 against respondent No.2. The accused absconded, leading to proclamation and attachment proceedings. (Para 2)

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Issue of Consideration

Whether the attachment and sale of property belonging to the accused under Section 83 of the Code of Criminal Procedure is valid when the mandatory procedure under Section 82 of the Code of Criminal Procedure for proclamation was not followed.

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Final Decision

The revision application is dismissed. The order of the Additional Sessions Judge, Udgir, dated 9th April 2009, setting aside the attachment and sale of the property, is upheld.

Law Points

  • Proclamation under Section 82 CrPC must strictly comply with mandatory procedure
  • Attachment and sale of property under Section 83 CrPC is invalid if proclamation procedure is not followed
  • Section 86 CrPC appeal lies against order of attachment and sale
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Case Details

2010 LawText (BOM) (10) 40

CRI. REVISION APPLICATION NO. 127 OF 2009

2010-10-06

A.V. NIRGUDE

Mr. P.M. Shah, Senior Counsel, instructed by Mr. S.P. Shah, Advocate for the applicant; Mr. A.S. Bayas, Advocate for respondent No. 2; Mr. T.S. Lodhe, APP for the respondent No. 3 and 4 / State

Dharampal s/o Shakarappa Chawale

M/s Vimal Enterprises, Prop. Shahuraj Baburao Navtakke, Shahuraj s/o Baburao Navtakke, The State of Maharashtra, Tahsildar, Udgir, Satish s/o Harishchandra Biradar

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Nature of Litigation

Criminal revision application challenging the order of Additional Sessions Judge setting aside attachment and sale of property under Section 86 CrPC.

Remedy Sought

The applicant (auction purchaser) sought to set aside the order of the Additional Sessions Judge and restore the attachment and sale of the property.

Filing Reason

The applicant purchased the property in a court auction after attachment under Section 83 CrPC, but the Additional Sessions Judge set aside the attachment and sale on appeal by the accused.

Previous Decisions

The learned Magistrate ordered proclamation under Section 82 CrPC and subsequent attachment and sale under Section 83 CrPC. The Additional Sessions Judge allowed the appeal under Section 86 CrPC and set aside the attachment and sale.

Issues

Whether the mandatory procedure under Section 82 CrPC was followed before ordering attachment under Section 83 CrPC. Whether the appeal under Section 86 CrPC was maintainable and correctly allowed.

Submissions/Arguments

The applicant argued that the attachment and sale were valid and the appeal under Section 86 CrPC was not maintainable. The respondent No.2 argued that the proclamation procedure under Section 82 CrPC was not followed, making the attachment and sale invalid.

Ratio Decidendi

The procedure under Section 82 of the Code of Criminal Procedure for issuance of proclamation is mandatory and must be strictly complied with before ordering attachment under Section 83. Non-compliance renders the attachment and sale invalid. The appeal under Section 86 CrPC is maintainable against an order of attachment and sale.

Judgment Excerpts

The record however does not show the original proclamation. The record also shows that after order for issuance of proclamation, mandatory procedure prescribed under Section 82 of Code of Criminal Procedure was not followed. In the circumstances, the learned Additional Sessions Judge was right in allowing the appeal and setting aside the attachment and sale.

Procedural History

Criminal Case No. 1690 of 2004 was filed under Section 138 NI Act. The accused absconded, leading to proclamation under Section 82 CrPC on 1st March 2006, published on 24th May 2006. Attachment and sale under Section 83 CrPC followed. The accused filed an appeal under Section 86 CrPC, which was allowed by the Additional Sessions Judge on 9th April 2009. The applicant (auction purchaser) filed this revision on 2009.

Acts & Sections

  • Code of Criminal Procedure, 1973: 82, 83, 86
  • Negotiable Instruments Act, 1881: 138
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