An interesting question of importance arises in the writ petition. Whether the owner who obtained release of confiscable motor vehicle allegedly involved in the commission of an offence under Section 13(2) of Andhra Pradesh Prohibition Act, 1995 (Prohibition Act, for brevity) is obliged to honour the Bank Guarantee (BG), (furnished as per the orders of the Court) after lapse of some time when for obvious reasons value of vehicle seized and confiscated as per law depreciates to a lesser value than BG amount?

M/s. Sriram Transport Finance Company Limited having its registered office at Chennai in Tamil Nadu, advanced loan to one Ch.Sarada (hirer, for brevity) for purchase of TATA Goods Vehicle bearing No.AP 26 T 2039 under an agreement, dated 05.06.1996. During subsistency of such agreement, vehicle was seized on 28.07.1996 by the Excise Officials for involvement in a commission of offence under Prohibition Act. The lorry was found carrying 360 full bottles of Indian made liquor. Second respondent initiated proceedings for confiscation of lorry under Section 13(2) of the Prohibition Act. The hirer moved an application before second respondent for release of vehicle, which w