JUDGMENT

CHINNAPPA REDDY, J.:—On December 24, 1970, at about 1 A.M. Beeran second respondent herein, was walking along the road in Calicut town when the Police stopped him on suspicion, searched him and found, in a bag which he was carrying, a sum of Rupees one lakh in currency notes of one hundred rupee denomination. He was arrested under Section 54 and 550 of the Code of Criminal Procedure and produced before the Sub-Magistrate I, Kozhikode. The Magistrate remanded him to custody. The Police reported to the Magistrate that at the time of arrest Beeran had stated that the money belonged to one Ahammed Thangal and that he was carrying the money to be paid to one Kayappa of Puthupady. On December 28, 1970, Beeran filed a petition requesting the Court to pay the money to Syed Abdulla Bafakai Thangal, first respondent herein, stating that the money belonged to him. Syed Abdulla Bafakai Thangal also filed a similar petition (C. M. P. No. 65/70). On November 20, 1971, the Police submitted a final report referring the case as one of mistake of fact and stating that their investigation revealed that the money seized from Beeran belonged to Syed Abdulla Bafakai Thangal and that Beeran had