High Court of Karnataka Modifies Condition for Release of Seized Vehicle in Minor Mineral Concession Case — Bank Guarantee Reduced to Value of Vehicle. The court held that requiring a bank guarantee of double the vehicle's value was disproportionate and reduced it to the vehicle's assessed value under Section 482 Cr.P.C.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The petitioner, Ibrahim, is the owner of a vehicle seized in connection with an offence under the Karnataka Minor Mineral Concession Rules, 1994. He filed an application before the Additional District and Sessions Judge, Gadag, for release of the vehicle, which was allowed on 28.02.2019 subject to several conditions. Condition No.5 required the petitioner to furnish a renewable bank guarantee of Rs.4,00,000/-, which was double the value of the seized vehicle as assessed by the complainant. Aggrieved by this condition, the petitioner approached the High Court under Section 482 Cr.P.C. seeking to set aside condition No.5. The High Court heard the petitioner's counsel and the learned HCGP for the respondent-State. The court noted that the vehicle had been idle for 5 to 6 months and that the condition of double the value was excessive. The court modified condition No.5, directing the petitioner to furnish a bank guarantee of Rs.2,00,000/- (the value of the vehicle) instead of Rs.4,00,000/-, and also reduced the personal bond from Rs.1,00,000/- to Rs.50,000/-. The petition was disposed of accordingly.

Headnote

A) Criminal Procedure Code - Inherent Powers - Section 482 Cr.P.C. - Modification of Bail Conditions - The High Court exercised its inherent jurisdiction to modify a condition imposed by the Sessions Court for release of a seized vehicle, holding that the condition requiring a bank guarantee of double the vehicle's value was disproportionate. (Para 4)

B) Mines and Minerals - Seizure of Vehicle - Karnataka Minor Mineral Concession Rules, 1994 - Rule 43 - Release of Vehicle - The court directed that the petitioner need only furnish a bank guarantee equivalent to the value of the seized vehicle (Rs.2,00,000/-) instead of double the value, and also reduced the personal bond amount from Rs.1,00,000/- to Rs.50,000/-. (Para 4)

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Issue of Consideration

Whether condition No.5 imposed by the Sessions Court requiring the petitioner to furnish a renewable bank guarantee of Rs.4,00,000/- (double the value of the seized vehicle) is excessive and warrants interference under Section 482 Cr.P.C.

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Final Decision

The High Court modified condition No.5, directing the petitioner to furnish a bank guarantee of Rs.2,00,000/- (the value of the vehicle) instead of Rs.4,00,000/-, and reduced the personal bond from Rs.1,00,000/- to Rs.50,000/-. The petition was disposed of.

Law Points

  • Section 482 Cr.P.C. inherent powers
  • condition for release of seized vehicle
  • proportionality of bank guarantee
  • Karnataka Minor Mineral Concession Rules 1994 Rule 43
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Case Details

2019 LawText (KAR) (03) 37

Criminal Petition No.100502/2019

2019-03-21

H.P. Sandesh

Miss Massarat M. Saith for Sri Sadiq N. Goodwala (for petitioner), Sri Praveen Kumar Uppar (HCGP for respondent-State)

Ibrahim S/o Mahabusab Hunashimarad

The State of Karnataka and Smt. Savitri B.P.

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Nature of Litigation

Criminal petition under Section 482 Cr.P.C. challenging a condition imposed by the Sessions Court for release of a seized vehicle.

Remedy Sought

Petitioner sought to set aside condition No.5 requiring a renewable bank guarantee of Rs.4,00,000/- (double the vehicle's value).

Filing Reason

Petitioner aggrieved by the condition of double the value of the seized vehicle as a precondition for release.

Previous Decisions

The Additional District and Sessions Judge, Gadag, allowed the application for release of the vehicle in Crl.Misc.No.90/2019 on 28.02.2019, imposing condition No.5 requiring a bank guarantee of Rs.4,00,000/-.

Issues

Whether condition No.5 requiring a bank guarantee of double the value of the seized vehicle is excessive and warrants modification under Section 482 Cr.P.C.

Submissions/Arguments

Petitioner argued that the vehicle had been idle for 5 to 6 months and the condition of double the value was excessive. Respondent-State opposed the petition.

Ratio Decidendi

The condition requiring a bank guarantee of double the value of the seized vehicle is disproportionate and excessive. The court, in exercise of its inherent powers under Section 482 Cr.P.C., can modify such conditions to ensure they are reasonable and not oppressive.

Judgment Excerpts

The main ground urged in the petition is that petitioner is the owner of the seized vehicle and the seized vehicle is kept idle nearly about 5 to 6 months. The condition No.5 that the petitioner shall furnish renewable bank guarantee to the tune of Rs.4,00,000/- which is double the value of the seized vehicle as assessed by the complainant.

Procedural History

The vehicle was seized in connection with an offence under the Karnataka Minor Mineral Concession Rules, 1994. The petitioner filed Crl.Misc.No.90/2019 before the Addl. District and Sessions Judge, Gadag, for release of the vehicle. The Sessions Court allowed the application on 28.02.2019 with conditions, including condition No.5 requiring a bank guarantee of Rs.4,00,000/-. Aggrieved, the petitioner filed the present petition under Section 482 Cr.P.C. before the High Court.

Acts & Sections

  • Code of Criminal Procedure, 1973 (Cr.P.C.): 482
  • Karnataka Minor Mineral Concession Rules, 1994: Rule 43(5), (6), (7), (8), (9), (10), (11) & 44(1)
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