Case Note & Summary
The appellant, owner of a truck seized for transporting 154 cartons of illicit liquor along with a country-made pistol and live cartridges, challenged the confiscation of his vehicle under the United Provinces Excise Act, 1910. An FIR was lodged on November 17, 2015, under Sections 60 and 72 of the Excise Act and Sections 420, 467, 468, and 471 IPC. The District Magistrate (Collector) issued a show cause notice for confiscation, and after the appellant filed objections, the Collector ordered confiscation and auction of the truck, giving the appellant an option to pay Rs. 4,50,000 as market value to avoid confiscation. The appellant's appeal to the District Judge and subsequent writ petition to the High Court were dismissed. The High Court held that the Excise Act being a special law, the Collector's jurisdiction under Section 72 is exclusive and the CrPC provisions apply only to the extent not inconsistent. The Supreme Court allowed the appeal, holding that the Collector's power of confiscation under Section 72 is independent of criminal prosecution, but when IPC offences are also registered, the Magistrate under Section 451 CrPC has concurrent jurisdiction to order interim release of the vehicle. The Court clarified that the Collector's order of confiscation is subject to the final order of the criminal court under Section 72(4)(c) of the Act. The Court set aside the orders of confiscation and directed the Magistrate to consider the appellant's application for release of the truck on such conditions as deemed fit, including furnishing a bond. The Court emphasized that the option to pay fine in lieu of confiscation does not bar the owner from seeking release from the Magistrate.
Headnote
A) Excise Law - Confiscation of Vehicle - Section 72, United Provinces Excise Act, 1910 - Jurisdiction of Collector vis-à-vis Magistrate - The Collector has power to order confiscation of a vehicle used in transporting illicit liquor, but this power is not exclusive when criminal proceedings including IPC offences are pending. The Magistrate under Section 451 CrPC retains jurisdiction to order interim release of the vehicle, subject to the final outcome of the trial. The Collector's order of confiscation is subject to the order of the criminal court under Section 72(4)(c) of the Act. (Paras 12-20) B) Criminal Procedure - Interim Release of Seized Property - Section 451, Code of Criminal Procedure, 1973 - Concurrent Jurisdiction - When an FIR registers offences under both the Excise Act and IPC, the Magistrate has concurrent jurisdiction to order release of the seized vehicle pending trial. The Collector's confiscation proceedings do not oust the Magistrate's power under CrPC. The vehicle may be released on appropriate conditions, including furnishing a bond. (Paras 18-20) C) Excise Law - Option to Pay Fine in Lieu of Confiscation - Section 72(2), United Provinces Excise Act, 1910 - Nature of Option - The option given to the owner to pay the market value of the vehicle in lieu of confiscation is not a penalty but a choice to avoid confiscation. However, this does not preclude the owner from seeking release of the vehicle from the Magistrate under CrPC. The owner cannot be compelled to pay the fine if he chooses to pursue release through criminal court. (Paras 16-17)
Issue of Consideration
Whether the Collector under Section 72 of the United Provinces Excise Act, 1910 has exclusive jurisdiction to order confiscation of a vehicle seized for transporting illicit liquor, or whether the Magistrate under the Code of Criminal Procedure, 1973 also has jurisdiction to order release of the vehicle pending trial, especially when offences under the Indian Penal Code are also registered.
Final Decision
The Supreme Court allowed the appeal, set aside the orders of the Collector, District Judge, and High Court, and directed the Magistrate to consider the appellant's application for release of the truck on such conditions as deemed fit, including furnishing a bond. The Court held that the Collector's power of confiscation under Section 72 is not exclusive when IPC offences are also registered, and the Magistrate has concurrent jurisdiction under Section 451 CrPC to order interim release of the vehicle pending trial.
Law Points
- Confiscation under Section 72 of UP Excise Act is independent of criminal prosecution
- but when IPC offences are also registered
- the Magistrate has concurrent jurisdiction over seized property under CrPC
- the Collector's order of confiscation is subject to the final order of the criminal court
- the option to pay fine in lieu of confiscation does not bar the owner from seeking release from the Magistrate.
