1976 Supreme(Kar) 182
Karnataka High Court
K.A.ASWATHANARAYANA SETTY - Appellant
Versus
SUB DIVISIONAL MAGISTRATE, MADHUGIRI - Respondent
Decided On : 11-02-76
W.P. : 8560 of 1976
K.S.PUTTASWAMY, T.R.SUBBANNA
The Sub-Divl Magistrate had no jurisdiction to seize articles not pledged by the debtors, and the seizure of articles without proper application or credible information was unauthorized by law.
Headnote:
Debt Relief Act - Search and Seizure - S. 5(1), S. 5(9) - The court quashed the proceedings instituted by the 1st respondent under the Karnataka Debt Relief Act of 1976, ruling that the seizure of articles from the petitioners' houses was illegal and unauthorized. The court emphasized that the Sub-Divl Magistrate had no jurisdiction to search and seize articles not pledged by the debtors, and that the seizure of articles without proper application or credible information was arbitrary and unauthorized by law.
Fact of the Case:
The petitioners sought to strike down the Karnataka Debt Relief Act of 1976 and to stop the proceedings initiated by the 1st respondent, alleging illegal search and seizure of their articles. The 1st respondent claimed to have seized articles based on applications from debtors, but the petitioners argued that the seized articles did not belong to the debtors and were unlawfully seized.
Finding of the Court:
The court found that the seizure of articles from the petitioners' houses was unauthorized and illegal, as the Sub-Divl Magistrate had no jurisdiction to seize articles not pledged by the debtors. The court also noted that the 1st respondent failed to comply with the provisions of the Act and flouted the interim order passed by the Court.
Issues: 1. Whether the seized articles were pledged by the debtors. 2. Whether the provisions of the Code of Criminal Procedure for search and seizure were applicable.
Ratio Decidendi: The court held that the Sub-Divl Magistrate had no authority to seize articles not pledged by the debtors, and that the seizure of articles without proper application or credible information was unauthorized by law. The court also noted that the 1st respondent failed to comply with the provisions of the Act and flouted the interim order passed by the Court.
Final Decision: The court allowed all the writ petitions and quashed the entire proceedings instituted by the 1st respondent. The petitioners were permitted to retain the articles seized by the 1st respondent and returned to them after the interim order was passed.
( 2 ) COMMON questions of law and facts arise in these writ petitions and therefore they are heard together and disposed of by a common order.
( 3 ) THE 1st petitioner Aswathanarayana Setty is a cloth merchant and partner of Onkar House. He is doing money lending business holding a licence. The 2nd petitioner is a general merchant. The 3rd petitioner is a wholesale merchant in food grains and also owner of a lorry. The 4th petitioner is the divided brother of the petitioner-1 and living separately. They are income-tax and sales-tax assessees. Their case is that the Circle inspector of Police Sira, the 3rd respondent came to their house on 10-9-76 at about 5-45 a. m. along with the Sheristedar of Madhugiri Taluk Office and his subordinates. They wanted to enter the house of the 1st petitioner in order to search and seize the articles in the house. The 1st petitioner informed them that he had not kept any pledged articles with him and also requested the 3rd respondent to show the authority under which he has come to search the home of the petitioners. The 3rd respondent did not show any authority to search or seize the articles in the house. The 1st petitioner refused to accede to the request of the 3rd respondent and others. When the 3rd respondent threatened him with dire consequence if he was not allowed to search and seize the articles in the house, the members of the family became panicky and tha petitioner was forced to comply with the demand of the Circle Inspector to enter the house. The 3rd respondent entered the house, searched all the almirahs after obtaining the keys from the petitioners. He also searched the iron safe and seized all the gold and silver oranaments and alsa cash of Rs. 10,300 and odd, out of which Ra. 8,800 belonged to the firm and the rest was his personal cash. Then the 3rd respondent searched the Pooja Room and seized all the gold ornaments belonging to the petitionor as well tat his family and also seized silver articles and one pronote of the value of Rs. 8,000 of one N. Hanumanthappa a bus owner of Madhugiri town. After the search the gold and silver ornaments and other articles were put in the iron safe and the iron safe was sealed and a daffedar was stationed there to watch the same. At about 9-30 p. m. in the night the 1st respondent, the Sub-Divl Magistrate, madhugiri Sub Diyn came along with the Deputy Supdt of Police to the house of the petitioner and opened the sealed iron safe, prepared a mahazar of the articles so seized and all the articles were put in a trunk and the sealed trunk was removed by the respondents inspite of the petitioners protest. He has stated that no statement was recorded by the respondents. He hae also brought to the notice of the respondents that the ornaments seized do not solely belong to him aad that some of the ornaments belonged to his daughter and others. Me has stated that he has made a voluntary declaration regarding the ornaments belonging to him.
( 4 ) SIMILARLY the house of the 2nd petitioner was also searched at 7-30 a. m. on the same day and the 1st respondent came at about 10-30p. m. and seized the gold and silver articles and cash and removed the same from the 2nd petitioner's house in a sealed truk after drawing up a mahazar. This petitioner is not doing any money-lending business. The 4th and the 5th respondents came to the house of the 3rd petitioner at about 6 a. m. on the same day made a search and seized gold and silver ornaments and a cash of Rs. 32,000. Th