Bombay High Court Allows Custody of Seized Truck in Excise Case — Modifies Onerous Condition of Bank Guarantee Under Section 457 CrPC. Truck Owner Not Required to Furnish Bank Guarantee for Full Value; Reasonable Conditions to Be Imposed.

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

The applicant, Jilani Nasiruddin Gore, filed an application under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) challenging the order of the Sessions Court for Greater Bombay dated March 19, 2004, which dismissed his revision application against the order of the Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai. The Magistrate had allowed the applicant's request for custody of his truck (registration No. MWU-7711) on the condition that he furnish a bank guarantee of Rs. 2,00,000/-. The truck was seized in connection with Crime No. 590 of 2003 on the allegation that it was carrying firewood to a site where country liquor was being illegally manufactured. The applicant contended that the truck was carrying licensed forest wood and that a false case had been registered. The High Court observed that the prosecution case had to be accepted for the present but noted that the condition of bank guarantee was onerous. The court held that while imposing conditions under Section 457 CrPC, the court must consider the value of the property, the nature of the offence, and the likelihood of misuse. A bank guarantee for the full value may not be necessary if other reasonable conditions can be imposed. The High Court modified the condition, directing the applicant to furnish a personal bond of Rs. 50,000/- and a surety of the like amount, and to produce the truck as and when required. The application was disposed of accordingly.

Headnote

A) Criminal Procedure Code - Interim Custody of Seized Property - Section 457 CrPC - Conditions for Release - The court held that while imposing conditions for release of seized property, the court must consider the value of the property, the nature of the offence, and the likelihood of the property being used for further offences. A bank guarantee for the full value may not be necessary if other reasonable conditions can be imposed to secure the property and ensure its production. (Paras 1-5)

B) Criminal Procedure Code - Inherent Powers - Section 482 CrPC - Interference with Interlocutory Orders - The High Court can interfere under Section 482 CrPC if the order of the lower court is patently illegal or suffers from material irregularity. In this case, the condition of bank guarantee was held to be onerous and not justified. (Paras 1-5)

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Issue of Consideration

Whether the condition imposed by the Magistrate requiring the applicant to furnish a bank guarantee of Rs. 2,00,000/- for release of the seized truck was reasonable and whether the High Court should interfere under Section 482 CrPC.

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Final Decision

The High Court allowed the application and modified the condition. Instead of a bank guarantee of Rs. 2,00,000/-, the applicant was directed to furnish a personal bond of Rs. 50,000/- and a surety of the like amount, and to produce the truck as and when required by the court.

Law Points

  • Section 482 CrPC
  • Section 457 CrPC
  • interim custody of seized property
  • conditions for release
  • bank guarantee not mandatory
  • reasonable conditions
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Case Details

2005 LawText (BOM) (05) 115

Criminal Application No.1717 of 2004

2005-06-21

A.M. Khanwilkar

Mr. M.S. Solkar for Applicant, Mr. K.V. Saste, A.P.P. for Respondent

Jilani Nasiruddin Gore

The State of Maharashtra

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Nature of Litigation

Criminal application under Section 482 CrPC challenging the condition imposed for release of seized truck.

Remedy Sought

The applicant sought modification of the condition requiring a bank guarantee of Rs. 2,00,000/- for release of the truck.

Filing Reason

The applicant's truck was seized in connection with Crime No. 590 of 2003 on allegations of carrying firewood to an illegal liquor manufacturing site. The Magistrate allowed custody on condition of furnishing a bank guarantee, which the applicant challenged as onerous.

Previous Decisions

The Metropolitan Magistrate allowed custody on condition of bank guarantee; the Sessions Court dismissed the revision application.

Issues

Whether the condition of furnishing a bank guarantee of Rs. 2,00,000/- for release of the seized truck was reasonable. Whether the High Court should interfere under Section 482 CrPC with the order imposing such condition.

Submissions/Arguments

The applicant argued that the condition of bank guarantee was onerous and that he should be allowed to take custody on furnishing a personal bond and surety. The State opposed the application, supporting the condition imposed by the Magistrate.

Ratio Decidendi

While imposing conditions for release of seized property under Section 457 CrPC, the court must consider the value of the property, the nature of the offence, and the likelihood of misuse. A bank guarantee for the full value may not be necessary if other reasonable conditions can be imposed to secure the property and ensure its production.

Judgment Excerpts

Suffice it to observe that the prosecution case will have to be accepted as it is for the present. The condition of bank guarantee was held to be onerous and not justified.

Procedural History

The truck was seized on 28th December 2003. The applicant applied for custody before the Metropolitan Magistrate, who allowed it on condition of furnishing a bank guarantee of Rs. 2,00,000/-. The applicant filed a revision before the Sessions Court, which was dismissed on March 19, 2004. The applicant then filed the present application under Section 482 CrPC before the High Court.

Acts & Sections

  • Code of Criminal Procedure, 1973: Section 457, Section 482
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