S.N.Jha, J.

1. This aijplication has been filed for quashing .an order dated 7-4-1988 (Annexure 6), whereby the learned Additional Chief Judicial Magistrate, Kishanganj, refused to permit the petitioners to dispose of and or otherwise deal with the silver bars released to them by order dated 23-11-1987 passed in Kishanganj G. R. P. S. Case No. 55/87 (G. R. No. 646/87).

2. While this application was pending for admission the petitioners filed a petition for amendment of the prayer portion of the main application and to treat the amendment petition as part of the main application, which was allowed vide order dated 7-7-1988. By amendment how the petitioners have also prayed for quashing of the entire criminal proceeding including the investigation pertaining to the aforesaid case pending in the court of Sub-Divisional Judicial Magistrate, Kishanganj.

3. The facts relevant for the disposal of this application, in short, are that the petitioner No.1 is a Hindu Undivided Family (HUF) firm carrying on business, inter alia, as Bullion Merchants and Commission Agents at Kishanganj and one Sampat Kumar Baid being the karta of the HUF acts as the properietor of the firm. The firm is duly registered under the Bihar Finance Act, 1981, Part I (the sales tax law relevant for the State of Bihar) and the Central Sales Tax Act, 1956 and the said firm is also regularly assessed under the Income Tax Act as a specified Hindu Undivided Family. The petitioner No.2 is the manager of the said firm. From the statement made in the application, it appears that the said firm in course of regular business as Bullion Merchant purchases silver and silver jwellery and after melting the same Converts it into silver bar sells it either at Kishanganj or sends it for sale to places outside like Delhi.

4. On 30-9-1987 in course of business petitioner No.1 was sending four silver bars duly stamped marked as Bar Nos. 1, 2, 3, and 4, weighing 3757 gms. 4077 gms., 2826 grms. and 3818 gms. respectively to Delhi to sell through their commission agent, M/s Tarachand Jalan, 1162, Kucha Mahajani, Chandani Chowk, Delhi, through two employees of its firm. From the First Information Report (Annexure 3), it appears that when the aforesaid two employees were at Kishanganj Railway Platform at about 8.30 p.m. on the same dyay to catch a train for going to Delhi via Sealdah (since the railway line from this side was disrupted by heavy flood) they were apprehended by the G.R. Police and on search the aforesaid articles were recovered from their possession in two bags. Each employee was carrying two silver bars. The police suspected it to be the stolen property and lodged the aforesaid First Information Report before the officer Incharge Railway Police Station, Kishanglanj on the same day for an offence under Segtion 414 of the Indian Penal Code (hereinafter referred to as "the Penal Code") and started investigation. It further appears that in course of interrogtion the said two employees disclosed that were carrying the silver bars on route to Delhi on behalf of the petitioner firm and immediately showed the original folio of the silver transport voucher, but the Assistant Sub-. Inspector arrested the two persons and seized the aforesaid four silver bars and ticket which they were possessing from Kishanganj to Dalkola. The Police also drew up a seizure list with regard to other belongings of the aforesaid employees including the silver bars.

5. While the investigation was going on a petition was filed in the court of the Sub-Divisional Judicial Magistrate, Kishanganj, for the release of the seized silver bars and the learned Magistrate vide order dated 23-11-1987 released the seized silver bars to petitioner No.1 on furnishing bond of Rs. 80,000.00 (eighty thousand) with two local sureties of the like amount each subject to the condition that the petitioner shall not destroy or melt or change the present construction of the silver bars without seeking prior permission of t