ANDHRA PRADESH HIGH COURT AT AMARAVATI
R.Raghunandan Rao, J.
D. Arasu – Appellant
Versus
State of Andhra Pradesh & Ors. – Respondents
Writ Petition No. 8386 of 2022
Decided On : 01-04-2022
Seizure - Release of Vehicle - Immovable Property as Security
Fact of the Case:
The petitioner's motorcycle was seized on the ground of transporting contraband. The petitioner approached the 2nd respondent for release of the vehicle, but was directed to furnish a fixed deposit receipt equal to the value of the vehicle. The petitioner approached the Court aggrieved by this condition.
Finding of the Court:
The Court allowed the writ petition and directed the release of the seized vehicle into the interim custody of the petitioner by permitting the petitioner to furnish immovable property as security equivalent to the value of the vehicle.
Issues: The issue was the condition imposed by the 2nd respondent for furnishing security by way of deposit and the petitioner's challenge to this condition.
Ratio Decidendi: The Court's decision was influenced by similar circumstances in which the Court had directed the release of such vehicles into the custody of their owners pending disposal of the main case. The Court modified the condition and allowed the petitioner to furnish immovable property as security.
Final Decision: The Court directed the respondents to release the seized vehicle into the interim custody of the petitioner by taking immovable property security equivalent to the value of the vehicle from the petitioner, along with other specified conditions.
JUDGMENT
R. Raghunandan Rao, J. - a Motorcycle bearing No.TN-18-aW-3295 belonging to the petitioner had been seized on 11.11.2021, by the 3rd respondent on the ground that the said vehicle was transporting contraband. after seizure of the vehicle, the petitioner had approached the 2nd respondent for release of the vehicle. Vide proceedings in C.No.755/SEB-CTR/2021/a, dated 22.02.2022 the 2nd respondent had directed the release of the vehicle into the interim custody of the petitioner subject to the condition to furnish a fixed deposit receipt equal to the value of the vehicle, as certified by the relevant Motor Vehicle Inspector.
2. aggrieved by the said condition, the petitioner has approached this Court.
3. In similar circumstances, this Court had directed the release of such vehicles into the custody of their owners pending disposal of the main case.
4. accordingly, this writ petition is allowed with the following directions:
i) The condition stipulated by the 2nd respondent vide proceedings in C.No.755/SEB-CTR/2021/a, dated 22.02.2022, for furnishing security by way of deposit is modified and petitioner is permitted to furnish immovable property as security equivalent to the value of the said vehicle.
i) The respondents are directed to release the seized vehicle into the interim custody of the petitioner by taking immovable property security equivalent to the value of the said vehicle from the petitioner within a period of one week from the date of submission of the said security.
ii) The petitioner shall submit solvency certificate of the immovable property issued by the competent authority i.e., Tahsildar/Panchayat Secretary/Municipal Commissioner having jurisdiction over the area where the property is situated.
iii) The petitioner shall produce encumbrance certificate obtained from online issued by the competent authority stating that the property is free from all encumbrances.
iv) The petitioner shall produce an affidavit stating that the immovable property which is produced as security for release of the vehicle shall not be alienated without knowledge/permission of the confiscating authority.
v) The petitioner shall produce the vehicle whenever it is required by the concerned authorities during pendency of the proceedings before them.
vi) The petitioner shall not alienate the vehicle during the pendency of the proceedings.
5. There shall be no order as to costs. as a sequel, pending miscellaneous petitions, if any, shall stand closed.
The main legal principle established is that in cases of vehicle seizure, the court may allow the use of immovable property as security for release of the vehicle, instead of a fixed deposit receipt.
Courts can grant interim custody of seized property with specific conditions to safeguard interests and ensure compliance.
The court has the authority to set aside conditions imposed by the respondent and issue specific directions for the release of a seized vehicle.
The main legal point established in the judgment is the court's authority to set aside conditions imposed by the respondent and to issue specific directions for the release of a seized vehicle.
The court has the authority to set aside conditions imposed by the respondent and issue specific directions for the release of seized property.
The Court balanced the interests of the parties by allowing interim custody of the seized vehicle with strict conditions to protect the vehicle and prevent any unauthorized actions.
Seized vehicles must be released to owners unless confiscation proceedings are initiated; conditions include deposit of bank guarantees and ensuring no illegal use.
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