Case Note & Summary
The petitioner, Mallappa s/o Mayappa Idali, is the owner of a vehicle seized in connection with an offence under the Karnataka Minor Mineral Concession Rules, 1994 (KMMC Rules). He filed an application before the VII Additional District and Sessions Judge, Belagavi, sitting at Chikodi, in Crl.Misc.No.3355/2018 for release of the vehicle. The Sessions Judge, by order dated 15.02.2019, allowed the application but imposed a condition that the petitioner must execute a renewable bank guarantee to the tune of Rs.6,00,000/-, which was double the value of the seized vehicle as assessed by the complainant. Aggrieved by this condition, the petitioner filed a petition under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.) before the High Court of Karnataka, Dharwad Bench, seeking modification of the impugned order to delete the requirement of bank guarantee. The petitioner argued that the condition was illegal, arbitrary, and contrary to law, and that he was unable to furnish such a guarantee due to financial hardship. The respondent-State, represented by the learned High Court Government Pleader (HCGP), contended that Rule 43(8) of the KMMC Rules specifically requires the owner to furnish a renewable bank guarantee equal to double the value of the vehicle, and thus the impugned order was in accordance with law. The High Court, after hearing both sides, observed that while Rule 43(8) provides for such a guarantee, the court has discretion to impose alternative conditions to avoid undue hardship. Considering the petitioner's inability to furnish the bank guarantee, the High Court modified the condition, directing the petitioner to execute a simple bond for Rs.6,00,000/- without any bank guarantee, with an undertaking not to alienate the vehicle and to produce it as and when required. The petition was accordingly disposed of.
Headnote
A) Criminal Procedure - Section 482 Cr.P.C. - Inherent Powers - Modification of Conditions - The High Court, in exercise of its inherent powers under Section 482 Cr.P.C., can modify conditions imposed by a lower court for release of seized property if such conditions are harsh or cause undue hardship to the owner. (Paras 1-5) B) Mines and Minerals - Karnataka Minor Mineral Concession Rules, 1994 - Rule 43(8) - Release of Seized Vehicle - The requirement of furnishing a renewable bank guarantee equal to double the value of the vehicle under Rule 43(8) is directory and not mandatory; the court has discretion to impose alternative conditions like a simple bond to balance the interests of the owner and the State. (Paras 4-5) C) Criminal Procedure - Interim Custody of Vehicle - Hardship - The court may relax the condition of bank guarantee if the owner is unable to furnish it due to financial constraints, and instead direct execution of a simple bond with an undertaking not to alienate the vehicle and to produce it as and when required. (Para 5)
Issue of Consideration
Whether the condition imposed by the Sessions Judge requiring the petitioner to furnish a renewable bank guarantee of Rs.6,00,000/- for release of the seized vehicle is legal and proper, or whether it should be modified to a simple bond without bank guarantee.
Final Decision
The High Court allowed the petition in part and modified the impugned order dated 15.02.2019 passed by the VII Addl. Dist. & Sessions Judge, Belagavi, sitting at Chikodi, in Crl.Misc.No.3355/2018. The condition of furnishing a renewable bank guarantee of Rs.6,00,000/- was set aside. Instead, the petitioner was directed to execute a simple bond for Rs.6,00,000/- without any bank guarantee, with an undertaking not to alienate the vehicle and to produce it as and when required by the court.
Law Points
- Section 482 Cr.P.C.
- Karnataka Minor Mineral Concession Rules
- 1994
- Rule 43(8)
- interim custody of vehicle
- bank guarantee
- renewable bank guarantee
- owner's hardship
