Gujarat High Court Dismisses State's Revision Against Order Permitting Sale of Seized Vehicle by Financier. Court upholds Sessions Judge's order under Section 451 CrPC for interim custody and sale of vehicle by financier, directing deposit of sale proceeds in FDR.

High Court: Gujarat High Court
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Case Note & Summary

The State of Gujarat filed a criminal revision application under Section 397 read with Section 401 of the Code of Criminal Procedure, 1973, challenging the judgment dated 27.12.2018 passed by the learned Principal District & Sessions Judge, Ahmedabad (Rural) in Criminal Misc. Application No.1359 of 2018. By that order, the Sessions Judge permitted the respondent no.1, Kotak Mahindra Prime Ltd., to sell the muddamal Toyota Camry Hybrid car bearing registration No. GJ-01-RL-5445, which had been seized during investigation of a complaint lodged under Section 3 of the Gujarat Protection of Interest of Depositors Act. The vehicle was originally owned by the respondent no.2 and was financed by the respondent no.1. During the pendency of the revision, the respondent no.1 filed an affidavit stating that the vehicle had been auctioned and the sale proceeds of Rs.15,71,000/- were received on 13.03.2019 by online transfer. The coordinate bench had earlier passed an order on 09.05.2019 noting this fact and directing that the amount be deposited in FDR in any nationalized bank. The High Court, after hearing the learned APP for the State, observed that since the vehicle had already been sold and the amount was lying with the respondent no.1, the revision application had become infructuous. The Court directed that the amount of Rs.15,71,000/- be kept in a fixed deposit in a nationalized bank in the name of the Nazir of the concerned court, subject to the outcome of the trial. The revision application was disposed of accordingly.

Headnote

A) Criminal Procedure - Interim Custody of Vehicle - Section 451 CrPC - Gujarat Protection of Interest of Depositors Act - The State challenged the order of the Sessions Judge permitting the financier to sell the seized Toyota Camry Hybrid car. The High Court held that since the vehicle had already been sold and the sale proceeds of Rs.15,71,000/- were deposited, the revision had become infructuous. The Court directed the amount to be kept in FDR in a nationalized bank pending trial. (Paras 1-3)

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Issue of Consideration

Whether the learned Sessions Judge was justified in permitting the respondent-financier to sell the seized vehicle during pendency of trial under Section 451 CrPC.

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Final Decision

The revision application is dismissed as having become infructuous since the vehicle has already been sold. The amount of Rs.15,71,000/- shall be kept in FDR in a nationalized bank in the name of the Nazir of the concerned court, subject to the outcome of the trial.

Law Points

  • Interim custody of vehicle
  • Sale of seized property by financier
  • Section 451 CrPC
  • Gujarat Protection of Interest of Depositors Act
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Case Details

2026 LawText (GUJ) (03) 389

R/Criminal Revision Application (Against Order Passed by Subordinate Court) No. 193 of 2019

2026-03-27

Hasmukh D. Suthar

Mr. Rohan Raval, APP for the Applicant; Mr. Jay S. Shah for the Respondent No.1

State of Gujarat

Kotak Mahindra Pvt. Ltd through Niranjan A. Kasvekar & Anr.

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Nature of Litigation

Criminal revision application against order permitting sale of seized vehicle

Remedy Sought

State sought to challenge the order of Sessions Judge allowing financier to sell the seized vehicle

Filing Reason

State aggrieved by order dated 27.12.2018 in Criminal Misc. Application No.1359 of 2018

Previous Decisions

Sessions Judge allowed sale of vehicle; coordinate bench on 09.05.2019 noted sale and directed deposit of amount

Issues

Whether the Sessions Judge's order permitting sale of seized vehicle was legal and proper

Submissions/Arguments

Learned APP submitted that the vehicle was seized under Gujarat Protection of Interest of Depositors Act and sale should not have been permitted

Ratio Decidendi

Once the seized property has been sold and the sale proceeds are available, the revision against the order permitting sale becomes infructuous. The court can direct the amount to be deposited in FDR pending trial.

Judgment Excerpts

By way of present criminal revision application the applicant – State of Gujarat has assailed the judgment dated 27.12.2018, in Criminal Misc. Application No.1359 of 2018, passed by the learned Principal District & Sessions Judge, Ahemdabad (Rural) It is submitted that an amount of Rs.15,71,000/- was received on 13.3.2019 by on line transfer and the receipt of the said payment was issued by Opponent – Kotak Mahindra Pvt. Ltd.

Procedural History

Complaint under Gujarat Protection of Interest of Depositors Act led to seizure of vehicle. Financier filed Criminal Misc. Application No.1359/2018 for interim custody. Sessions Judge allowed sale on 27.12.2018. State filed revision on 09.05.2019. Coordinate bench noted sale and directed deposit. Present judgment disposes revision as infructuous.

Acts & Sections

  • Code of Criminal Procedure, 1973: 451, 397, 401
  • Gujarat Protection of Interest of Depositors Act: 3
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High Court Gujarat High Court Dismisses State's Revision Against Order Permitting Sale of Seized Vehicle by Financier. Court upholds Sessions Judge's order under Section 451 CrPC for interim custody and sale of vehicle by financier, directing deposit of sale pr...