IN THE HIGH COURT OF DELHI AT NEW DELHI
Asha Menon, J.
Sandeep Singh - Appellant
Versus
State Of NCT Of Delhi & Anr. - Respondents
Crl.M.C. 174 of 2021
Decided On : 18-05-2022
Review of Order - FIR No.170/2019 - Sections 380/406/420/506/120B IPC - Sections 467/468/471 IPC - The court discussed the power of the Magistrate to review its order, principles of natural justice, and the interlocutory nature of orders under Section 451 Cr.P.C. The court concluded that the recall of the earlier order was not perverse or beyond the jurisdiction of the Trial Court.
Fact of the Case:
The petitioner filed a petition against the impugned order dated 14th January, 2021, which directed the surrender of seized moulds. The petitioner claimed misappropriation by the respondent and sought release of seized property.
Finding of the Court:
The court found that the earlier order granting custody of the moulds to the petitioner was passed without hearing the respondent and violated principles of natural justice. The court concluded that the recall of the earlier order was justified until the rights of the parties were adjudicated.
Issues: The issues revolved around the power of the Magistrate to review its order, the violation of principles of natural justice, and the interlocutory nature of orders under Section 451 Cr.P.C.
Ratio Decidendi: The court held that the Magistrate must grant affected parties an adequate opportunity to be heard before releasing property on superdari. The court also emphasized the interlocutory nature of orders under Section 451 Cr.P.C. and the inherent power of the Trial Court to modify such orders.
Final Decision: The court dismissed the petition, concluding that the recall of the earlier order was not perverse or beyond the jurisdiction of the Trial Court.
JUDGMENT
1. The petition has been filed by the complainant in FIR No.170/2019, which was registered under Sections 380/406/420/506/120B IPC at Police Station Vasant Kunj, Delhi, being aggrieved by the impugned order dated 14th January, 2021 passed by the learned Chief Metropolitan Magistrate, Patiala House Courts, New Delhi.
2. Mr. Mudit Jain, learned counsel for the petitioner submitted that the learned Chief Metropolitan Magistrate reviewed his earlier order dated 20th August, 2020 without any power to do so. Vide order dated 20th August, 2020, 8 moulds being seized by the police in FIR No.170/2019, were ordered to be released to the petitioner, whereas vide the impugned order, the petitioner was directed to surrender the released moulds within 7 days. Further, the Investigating Officer was directed to take possession of the same.
3. It may be mentioned here that the FIR has been registered by the petitioner as a partner of respondent No.2 submitting that they had set up a partnership firm through a registered Partnership Deed dated 10th March, 2014 for manufacturing remote controls in the name and style of M/s S.S. Manufacturing. The petitioner claims to have suddenly realized that the respondent No.2 had created a parallel company in the name of M/s Rugs Enterprises Pvt. Ltd. which was operating from M/s S.S. Manufacturing at the leased premises and the respondent No.2/accused along with a few employees planned a criminal conspiracy to misappropriate M/s S.S. Manufacturing's finished goods, raw material and machinery hypothecated for their own wrongful gain. According to the petitioner, the respondent No.2 was fully aware of the hypothecation of the machinery to Andhra Bank and the loan, as also the fact that in default of repayment, the loan would be recovered from the property belonging to the petitioner's father which had been mortgaged to Andhra Bank.
4. In the backdrop of these allegations of misappropriation, FIR No.170/2019 was registered at Police Station Vasant Kunj, Delhi against the respondent No.2 and others for having committed offences under Sections 380/406/420/506/120B IPC. Subsequently, Sections 467/468/471 IPC were also added by the Investigating Officer. It is the case of the petitioner that during investigations, the premises of M/s V.P. Automotive Components were raided and 8 moulds were seized which belonged to M/s S.S. Manufacturing. On the same day, upon a raid of the premises of M/s LIT India Pvt. Ltd., which was a company that belonged to the respondent No.2, 111 boxes of finished goods/remotes were also seized.
5. The petitioner moved an application under Section 451 Cr.P.C. and vide order dated 20th August, 2020, 8 moulds were released to him. In separate proceedings, the wife of the respondent No.2, being the Authorised Representative of M/s Rugs Enterprises Pvt. Ltd. approached the court of the learned Chief Metropolitan Magistrate for release of 111 boxes of finished goods/remotes and vide order dated 17th September, 2020, these were directed to be released to her as an Authorised Representative of M/s Rugs Enterprises Pvt. Ltd.
6. The respondent No.2 filed an application on 28th September, 2020 before the court of the learned Chief Metropolitan Magistrate seeking directions to the petitioner to surrender the moulds released to him earlier. The learned counsel for the petitioner submitted that such an order could not have been passed by the learned Chief Metropolitan Magistrate, since it had no powers to review its order. The order had to be, therefore, set aside straightway. Reliance has been placed on Muneshwar Bux Singh Vs. State 1955 SCC OnLine All 362, Juhi Modi Vs. Neeraj Gupta & Anr. 1999 SCC OnLine Del 796, Adalat Prasad Vs. Rooplal Jindal & Ors. (2004) 7 SCC 338, Subramanium Sethuraman Vs. State of Maharashtra 2005 SCC (Crl) 242, Smt. Anisa Begum v. Masoom Ali and Ors. 1985 SCC OnLine Del 382, M/s Shiva Leasing CO. Vs State, 1999 (79) DLT 148, Sunderbhai Ambalal Desai v. State of Gujarat (
Adalat Prasad vs. Rooplal Jindal & Ors. (2004) 7 SCC 338
Dhruvaram Murlidhar Sonar vs. State of Maharashtra
Iqbal Singh Marwah & Anr. V. Meenakshi Marwah & Anr. (2005) 4 SCC 370
Ira Juneja & Anr. vs. State & Anr. (2004) 72 DRJ 207
Janta Dal vs. H.S Chowdhary and Anr. (1992) 4 SCC 305
M/s Shiva Leasing CO. vs. State
Manjit Singh vs. State (2014) (214) DLT 646
State Bank of India vs. Rajendra Kumar Singh & Ors. (1969) 2 SCR 216
Surya Vadanan vs. State of Tamil Nadu and Ors. (2015) 5 SCC 450
Vishnu Agarwal vs. State of Uttar Pradesh and Anr. (2011) 14 SCC 813
The judgment emphasizes the importance of principles of natural justice, the interlocutory nature of orders under Section 451 Cr.P.C., and the inherent power of the Trial Court to modify such orders.
The power to modify orders passed under Section 451 Cr.P.C. is inherent, and the order under Section 451 Cr.P.C. is interlocutory in nature.
The main legal point established in the judgment is that an order passed under Section 91 of the Cr.P.C. is an order of interlocutory nature and does not attract the bar under Section 362 of the Cr.P....
The entitlement to seized property post-acquittal is contingent upon proven ownership title, overriding mere possession claims.
The main legal point established in the judgment is the lack of power of review or recall for the Chief Metropolitan Magistrate under the SARFAESI Act, as determined by the Supreme Court's decision i....
The court upheld that the petitioner failed to substantiate ownership of confiscated goods, emphasizing the necessity for adequate inquiry under applicable provisions of the Code of Criminal Procedur....
Anticipatory bail, once granted, remains effective until the trial concludes, and a court must adhere to higher court directives regarding bail conditions and custody.
Anticipatory bail granted by a higher court remains in effect until the trial concludes, and lower courts must adhere to such orders to maintain judicial discipline.
Point of law: Court can postpone the issue of process
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