( 1 ) THE petitioner claims to be Branch Manager of M/s Sri Ram Transport Finance Ltd. ( financier for brevity ). The financier appears to have given a loan to one Ch. Sarda ( hire for brevity) under an agreement dated 5-6-1996 ( hire purchase agreement for brevity) for purchase of a goods vehicle, lorry bearing No. AP-26-T-2039. Under the hire purchase agreement, the hirer has to pay monthly instalments to the financier and it was covenanted that the hirer shall not transport any illegal and unauthorized goods. Clause 8 of the hire purchase agreement provides that ownership of the vehicle will remain with the financier unless and until the loan amount is repaid.

( 2 ) THE vehicle in question was intercepted and checked by the Prohibition and Excise Inspector, Kovur along with his staff on 27-7-1996. The lorry was carrying 360 quarts of Indian made liquor (IML ). Under a panchanama, the vehicle along with the contraband was seized and produced before the second respondent herein. The latter initiated proceedings under S. 13 (2) of the A. P. Prohibition Act, 1995 ( the Prohibition Act ).

( 3 ) THE hirer, claiming herself to be owner, presented an application to t