High Court of Karnataka Allows Petition in Part and Sets Aside Excessive Condition of Double Bank Guarantee for Release of Seized Vehicle in Minor Mineral Case. Court Modifies Condition to Execution of Personal Bond with Surety, Holding That Imposing Bank Guarantee of Double the Value of Vehicle Is Not Warranted.

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 for release of the vehicle before the Addl. District and Sessions Judge, Gadag, in Crl.Misc.No.90/2019. The Sessions Court allowed the application but imposed several conditions, including condition No.5 requiring 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 filed a petition under Section 482 Cr.P.C. before the High Court of Karnataka, Dharwad Bench, seeking to set aside condition No.5. The main ground urged was that the vehicle had been idle for 5-6 months and the condition of double bank guarantee was excessive. The High Court, after hearing both sides, held that imposing a condition of bank guarantee of double the value of the vehicle is not warranted. The court modified the condition, directing the petitioner to execute a personal bond for Rs.2,00,000/- with one surety for the like amount, and to produce the vehicle as and when required. The petition was allowed in part, and the impugned condition was set aside.

Headnote

A) Criminal Procedure - Section 482 Cr.P.C. - Inherent Powers - Release of Seized Vehicle - Condition of Bank Guarantee - The petitioner challenged condition No.5 in the order dated 28.02.2019 passed by the Addl. Dist. & Sessions Judge, Gadag, in Crl.Misc.No.90/2019, which required furnishing a renewable bank guarantee of Rs.4,00,000/- (double the value of the seized vehicle) for release of the vehicle seized under Karnataka Minor Mineral Concession Rules, 1994. The High Court held that imposing a condition of bank guarantee of double the value of the vehicle is excessive and not warranted. The court modified the condition, directing the petitioner to execute a personal bond for Rs.2,00,000/- with one surety for the like amount, and to produce the vehicle as and when required. (Paras 2-4)

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Issue of Consideration

Whether the condition imposed by the Sessions Court requiring the petitioner to furnish a renewable bank guarantee of double the value of the seized vehicle (Rs.4,00,000/-) is excessive and liable to be set aside under Section 482 Cr.P.C.

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Final Decision

The petition is allowed in part. Condition No.5 in the order dated 28.02.2019 passed by the Addl. Dist. & Sessions Judge, Gadag, in Crl.Misc.No.90/2019 is set aside. The petitioner is directed to execute a personal bond for Rs.2,00,000/- with one surety for the like amount to the satisfaction of the trial court, and to produce the vehicle as and when required.

Law Points

  • Section 482 Cr.P.C.
  • Karnataka Minor Mineral Concession Rules 1994 Rule 43
  • Release of seized vehicle
  • Condition of bank guarantee
  • Proportionality of conditions
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Case Details

2019 LawText (KAR) (03) 83

Criminal Petition No.100502/2019

2019-03-21

H.P. Sandesh

Miss Massarat M. Saith, Sri Sadiq N. Goodwala, Sri Praveen Kumar Uppar

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 in the order dated 28.02.2019 passed by the Addl. Dist. & Sessions Judge, Gadag, in Crl.Misc.No.90/2019, which required furnishing a renewable bank guarantee of Rs.4,00,000/- (double the value of the seized vehicle).

Filing Reason

The petitioner was aggrieved by the condition of double bank guarantee imposed by the Sessions Court for release of his vehicle seized under the Karnataka Minor Mineral Concession Rules, 1994.

Previous Decisions

The Addl. Dist. & Sessions Judge, Gadag, by order dated 28.02.2019 in Crl.Misc.No.90/2019, allowed the application for release of the vehicle but imposed condition No.5 requiring a renewable bank guarantee of Rs.4,00,000/-.

Issues

Whether the condition of furnishing a renewable bank guarantee of double the value of the seized vehicle is excessive and liable to be set aside under Section 482 Cr.P.C.

Submissions/Arguments

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

Ratio Decidendi

Imposing a condition of bank guarantee of double the value of the seized vehicle is excessive and not warranted. The court can modify such conditions under its inherent powers under Section 482 Cr.P.C. to ensure proportionality and to prevent hardship to the owner.

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 court below imposed 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... Having heard the counsel for the petitioner and the learned HCGP, this Court is of the opinion that imposing a condition of bank guarantee of double the value of the vehicle is not warranted.

Procedural History

The vehicle was seized under the Karnataka Minor Mineral Concession Rules, 1994. The petitioner filed Crl.Misc.No.90/2019 before the Addl. Dist. & 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 renewable bank guarantee of Rs.4,00,000/-. Aggrieved, the petitioner filed Criminal Petition No.100502/2019 under Section 482 Cr.P.C. before the High Court of Karnataka, Dharwad Bench, which was heard and disposed of on 21.03.2019.

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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