Supreme Court Allows Appeal of Vehicle Owner in Gujarat Prohibition Act Case — High Court Erred in Dismissing Petition Without Considering Section 451 CrPC. Vehicle Owner Entitled to Seek Interim Custody of Seized Vehicle Pending Trial Despite Section 98(2) of Gujarat Prohibition Act, Which Does Not Create an Absolute Bar.

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Case Note & Summary

The appellant, Khengarbhai Lakhabhai Dambhala, claimed ownership of a vehicle (Eicher 10.80 bearing no. GJ 05-BT-0899) that was seized in connection with an FIR under the Gujarat Prohibition Act and IPC. The vehicle was intercepted by police on 29.04.2023 while carrying 1240.200 litres of English liquor worth Rs. 7 lakhs without a pass or permit. The appellant filed Special Criminal Application No.6465 of 2023 before the Gujarat High Court under Article 226/227 seeking release of the vehicle, but the High Court dismissed it on 08.06.2023. The State contended that Section 98(2) of the Gujarat Prohibition Act forbids release of such vehicle till final judgment if the seized liquor quantity exceeds the prescribed limit (20 litres). The Supreme Court held that the appellant should have first approached the criminal court under Section 451 CrPC for interim custody, as that provision empowers the court to pass orders for proper custody of property pending trial. The Court also interpreted Section 98(2) of the Act, noting that the second part (added by amendment in 2011) is not an absolute embargo but must be harmoniously construed with Section 451 CrPC. The Court set aside the High Court's order and directed the appellant to approach the jurisdictional criminal court under Section 451 CrPC, which shall consider the application for release of the vehicle on appropriate conditions, including furnishing a bond and surety, and ensuring the vehicle is not alienated or used for illegal activities. The appeal was allowed.

Headnote

A) Criminal Procedure Code - Interim Custody of Property - Section 451 CrPC - The criminal court before whom property is produced has jurisdiction to pass orders for proper custody pending trial; the High Court should not have dismissed the petition without considering this remedy (Paras 5-6).

B) Gujarat Prohibition Act - Confiscation of Conveyance - Section 98(2) - The second part of Section 98(2) is not an absolute embargo but must be harmoniously construed with Section 451 CrPC; the vehicle can be released on appropriate conditions pending trial (Paras 7-9).

C) Interpretation of Statutes - Harmonious Construction - Doctrine of Harmonious Construction - The court applied the doctrine to reconcile the seemingly conflicting provisions of Section 98(2) of the Gujarat Prohibition Act and Section 451 CrPC (Para 9).

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Issue of Consideration

Whether the High Court was justified in dismissing the appellant's application for release of the seized vehicle under Article 226/227 of the Constitution without considering the alternative remedy under Section 451 CrPC, and whether Section 98(2) of the Gujarat Prohibition Act creates an absolute embargo against release of the vehicle pending trial.

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Final Decision

The Supreme Court allowed the appeal, set aside the High Court's order, and directed the appellant to approach the jurisdictional criminal court under Section 451 CrPC for release of the vehicle. The criminal court shall consider the application and pass appropriate orders, including conditions such as furnishing a bond and surety, and ensuring the vehicle is not alienated or used for illegal activities.

Law Points

  • Section 451 CrPC empowers criminal courts to order interim custody of property pending trial
  • Section 98(2) of Gujarat Prohibition Act does not create an absolute bar against release of conveyance
  • High Court should not have dismissed petition without considering alternative remedy under Section 451 CrPC
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Case Details

2024 LawText (SC) (04) 517

Criminal Appeal No.1547 of 2024

2024-04-29

Bela M. Trivedi

2024 INSC 285

Khengarbhai Lakhabhai Dambhala

The State of Gujarat

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Nature of Litigation

Criminal appeal against dismissal of application for release of seized vehicle under Gujarat Prohibition Act.

Remedy Sought

Release of the vehicle (Eicher 10.80 bearing no. GJ 05-BT-0899) seized in connection with FIR No.11200038231465/2023.

Filing Reason

The appellant's vehicle was seized for carrying 1240.200 litres of English liquor without pass or permit; the High Court dismissed his application for release.

Previous Decisions

The Gujarat High Court dismissed Special Criminal Application No.6465 of 2023 on 08.06.2023.

Issues

Whether the High Court was justified in dismissing the appellant's petition under Article 226/227 without considering the alternative remedy under Section 451 CrPC. Whether Section 98(2) of the Gujarat Prohibition Act creates an absolute bar against release of the vehicle pending trial.

Submissions/Arguments

Appellant: The vehicle is owned by the appellant and should be released pending trial; the High Court erred in dismissing the petition. Respondent: Section 98(2) of the Gujarat Prohibition Act forbids release of the vehicle till final judgment because the seized liquor quantity (1240 litres) exceeds the prescribed limit (20 litres).

Ratio Decidendi

The criminal court under Section 451 CrPC has jurisdiction to order interim custody of property pending trial; Section 98(2) of the Gujarat Prohibition Act does not create an absolute embargo against release of the conveyance but must be harmoniously construed with Section 451 CrPC. The High Court should not have dismissed the petition without considering the alternative remedy.

Judgment Excerpts

When any property is produced before any Criminal Court during any inquiry or trial, the Court may make such order as it thinks fit for the proper custody of such property pending the conclusion of the inquiry or trial... The appellant without approaching the concerned court under Section 451, Cr.P.C, directly approached the High Court... which could not be said to be the proper course of action... The second part of sub-section (2) of Section 98... is not very happily worded... applying the doctrine of harmonious construction, we will have to harmonise the provisions contained therein with the other provisions of the Act and with the provisions contained in the Cr.P.C.

Procedural History

FIR registered on 29.04.2023; vehicle seized; appellant filed Special Criminal Application No.6465 of 2023 before Gujarat High Court under Article 226/227; High Court dismissed on 08.06.2023; appellant filed Criminal Appeal No.1547 of 2024 before Supreme Court.

Acts & Sections

  • Code of Criminal Procedure, 1973 (CrPC): 451
  • Gujarat Prohibition Act, 1949: 65, 81, 98, 116, 123, 132
  • Indian Penal Code, 1860 (IPC): 465, 468, 471, 114
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