Bombay High Court Allows Return of Seized Wheat in Essential Commodities Act Case — Interim Custody Granted to Owner Pending Confiscation Proceedings. Magistrate and Sessions Court Erred in Refusing Release on Ground of Possible Confiscation Without Considering That No Confiscation Order Had Been Passed.

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

The petitioner, Hasankhan s/o Sherkhan Pathan, was accused no.3 in Crime No. II-49/2012 registered at Gangapur Police Station for offences under Sections 3 and 7 of the Essential Commodities Act, 1955. The police seized 127 quintals of wheat from a truck, which admittedly belonged to the petitioner. The petitioner applied to the Judicial Magistrate (First Class)(2nd Court), Gangapur for return of the seized wheat, but the application was rejected. The petitioner then filed a Criminal Revision Petition before the Additional Sessions Judge, Vaijapur, which was dismissed with costs on 11-9-2013. Aggrieved, the petitioner approached the High Court invoking its constitutional jurisdiction. The petitioner claimed he was a licensed merchant dealing in food grains and held a license from the Agricultural Produce Market Committee, Sillod. The wheat was seized on suspicion that it was meant for fair price shops but was being transported for sale in the open market at a higher rate. The petitioner argued there was no evidence to support this suspicion. The investigation was complete and the charge sheet had been filed on 29-12-2012. The Magistrate had refused interim custody because the District Supply Officer had not filed his say and there was a provision for confiscation under the Essential Commodities Act. The Sessions Court similarly observed that the District Supply Officer had not passed any confiscation order. The High Court noted that no order of confiscation had been passed and the wheat was lying idle. The court held that the wheat should be released to the petitioner on his executing a bond and furnishing security, and subject to the condition that he would produce the wheat as and when required. The petition was allowed, the orders of the Magistrate and Sessions Court were set aside, and the Magistrate was directed to release the wheat to the petitioner on appropriate conditions.

Headnote

A) Criminal Procedure - Interim Custody of Seized Property - Essential Commodities Act, 1955, Sections 3 and 7 - Release of Perishable Goods - The petitioner, accused no.3 in a case under the Essential Commodities Act, sought return of 127 quintals of wheat seized from a truck. The Magistrate and Sessions Court refused release citing possible confiscation. The High Court held that since no confiscation order had been passed and the investigation was complete, the wheat should be released to the petitioner on suitable conditions. (Paras 1-6)

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Issue of Consideration

Whether the seized wheat should be released to the petitioner pending investigation and confiscation proceedings under the Essential Commodities Act, 1955.

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Final Decision

Petition allowed. Orders of Magistrate and Sessions Court set aside. Magistrate directed to release the seized wheat to the petitioner on his executing a bond and furnishing security, subject to condition that he produces the wheat as and when required.

Law Points

  • Interim custody of seized property pending confiscation proceedings
  • Essential Commodities Act
  • 1955
  • Sections 3 and 7
  • Magistrate's discretion
  • Release of perishable goods
  • No confiscation order passed
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Case Details

2013 LawText (BOM) (12) 35

Criminal Writ Petition No. 997 of 2013

2013-12-04

Abhay M. Thipsay, J.

Mr. Mobin H. Shaikh for petitioner, Mr. S.R. Palnitkar, Additional Public Prosecutor for respondents

Hasankhan s/o. Sherkhan Pathan

The State of Maharashtra, The Police Inspector, Gangapur Police Station, The District Supply Officer, Aurangabad

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Nature of Litigation

Criminal writ petition challenging refusal of interim custody of seized wheat.

Remedy Sought

Petitioner sought release of 127 quintals of wheat seized by police.

Filing Reason

Magistrate and Sessions Court refused to release seized wheat pending investigation and possible confiscation.

Previous Decisions

Judicial Magistrate (First Class)(2nd Court), Gangapur rejected application for return of wheat; Additional Sessions Judge, Vaijapur dismissed revision with costs on 11-9-2013.

Issues

Whether the seized wheat should be released to the petitioner pending investigation and confiscation proceedings under the Essential Commodities Act, 1955.

Submissions/Arguments

Petitioner argued he is a licensed merchant and there is no evidence to support suspicion that wheat was meant for fair price shops. Respondents opposed release citing possibility of confiscation under the Essential Commodities Act.

Ratio Decidendi

When no order of confiscation has been passed and investigation is complete, the court may release seized property to the owner on suitable conditions pending trial.

Judgment Excerpts

The petitioner is the accused no.3 in Crime No. II-49/2012... It is not in dispute that, the investigation is over and the charge sheet has been filed, as back as, on 29-12-2012. The wheat is lying idle. No order of confiscation has been passed.

Procedural History

Crime registered on suspicion of illegal transport of wheat. Petitioner applied for return of seized wheat to Judicial Magistrate (First Class)(2nd Court), Gangapur, which was rejected. Petitioner filed Criminal Revision before Additional Sessions Judge, Vaijapur, which was dismissed with costs on 11-9-2013. Petitioner then filed Criminal Writ Petition No. 997 of 2013 before Bombay High Court, Aurangabad Bench.

Acts & Sections

  • Essential Commodities Act, 1955: 3, 7
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