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2025 Supreme(Jhk) 486

IN THE HIGH COURT OF JHARKHAND AT RANCHI 
ANIL KUMAR CHOUDHARY, J.
Sanjay Kumar Mandal @ Ajay Kumar Mandal, S/o Mitlal Mandal - Appellant 
Versus
The State of Jharkhand - Respondent 
Cr.M.P. No. 918 of 2025
Decided on : 01-05-2025 

Advocates:
Advocate Appeared:
For the Appellant :Mr. Rishu Ranjan, Advocate
For the Respondent: Mr. Rajesh Kumar, Addl. P.P.

The absence of insurance does not bar the release of a seized vehicle if the owner provides sufficient security for potential compensation claims.

Headnote:(A) B.N.S.S., 2023 - Section 528 - Jharkhand Motor Accident Claims Tribunal Rules, 2019 - Rule 6 - Release of seized vehicle - Petitioner's request for release of a Tractor and Trailer denied by Chief Judicial Magistrate due to lack of insurance - Court held that Rule 6 does not prohibit release if sufficient security is provided - Court emphasized the need for timely action to prevent loss of vehicle value - Order set aside, and release granted upon furnishing indemnity bond. (Paras 2, 10, 11, 12)

(B) Principle of law - The absence of insurance does not automatically bar the release of a vehicle; the owner can provide security to satisfy potential compensation claims. (Paras 6, 10)

Facts of the case:
The petitioner sought the release of a Tractor and Trailer seized in connection with an accident, arguing that the vehicle's value was diminishing while in police custody. The Chief Judicial Magistrate denied the request due to lack of insurance.

Findings of Court:
The court found that the Chief Judicial Magistrate failed to follow Rule 6, which allows for release upon providing sufficient security.

Issues: Whether the lack of insurance prohibits the release of a seized vehicle and the proper procedure for such release.

Ratio Decidendi: The court ruled that the absence of insurance does not prevent the release of a vehicle if the owner can provide adequate security for potential compensation.

Result: Petition allowed, and the vehicle is to be released upon furnishing an indemnity bond.

JUDGMENT :

1. Heard the parties.

2. This criminal miscellaneous petition has been filed invoking the jurisdiction of this Court under Section 528 of B.N.S.S., 2023 with a prayer to set aside the order dated 20.12.2024, passed by the learned Chief Judicial Magistrate, Giridih in connection with Pachamba P.S. Case No. 144 of 2024, whereby and where under the learned Chief Judicial Magistrate, Giridih has rejected the prayer of the petitioner for release of the commercial vehicle being Tractor along with Trailer bearing Registration No. JH-11-Z-2732 as the same was not insured at the time of occurrence.

3. The brief fact of the case is that the said Tractor and Trailer was seized by the police in connection with Pachamba P.S. Case No. 144 of 2024, involving the offences punishable under Section 281, 125(a) and 125(b) of the B.N.S., 2023; as the same was involved in an accident causing injuries to the victim. The I.O. of the case on being asked by the court, intimated that the vehicle was not required for the purpose of investigation and on considering the fact that there was no valid insurance of the vehicle in question on the date of occurrence and Rule 6(1) of the Jharkhand Motor Accident Claims Tribunal Rules, the learned Chief Judicial Magistrate, Giridih rejected the prayer of the petitioner for release of the vehicle.

4. It is submitted by the learned counsel for the petitioner that Rule6 of the Jharkhand Motor Accident Claims Tribunal Rules, 2019 do not prohibit the release of the vehicle not insured but it provides that if the owner furnishes sufficient security to the satisfaction of the court to pay compensation, that may be awarded in any claim case arising out of such accidents, such vehicle can be released. It is next submitted that the vehicle in question has been kept under the open sky which is likely to diminish its value with passage of time. It is next submitted that there is no chance of the trial being concluded in near future and the petitioner is suffering irreparable loss because of the seizure of his vehicle and is ready and willing to furnish sufficient security to the satisfaction of the court below. Hence, it is submitted that the prayer as made in this criminal miscellaneous petition be allowed.

5. The learned Additional Public Prosecutor on the other hand vehemently opposes the prayer as made in this criminal miscellaneous petition and submits that since the vehicle was not insured on the date of accident, hence the learned Chief Judicial Magistrate, Giridih has rightly rejected the prayer for release of the vehicle. It is lastly submitted that this criminal miscellaneous petition being without any merit be dismissed.

6. Having heard the submissions made at the Bar and after going through the materials in the record, it is pertinent to mention here that it is a settled principle of law as has been held by the Hon’ble Supreme Court of India in the case of Sunderbhai Ambalal Desai V. State of Gujarat, AIR 2003 SC 638, that it is of no use, to keep the seized vehicle at the police station for a long time and it is for the Magistrate to pass appropriate orders immediately by taking bond and guarantee as well as security for the return of the vehicle, if required, at any point of time that can be ordered to be produced.

7. Now coming to the facts of the case, it is undisputed that the petitioner is the owner of the vehicle and the I.O. of the case does not require the vehicle for the purpose of investigation. It is certainly not desirable that a vehicle seized by the police will be kept under open sky when there is no chance of the trial being concluded within any reasonable time.

8. The Hon’ble Supreme Court of India in the case of Jai Prakash Vs. National Insurance Company Limited & Ors., reported in (2010) 2 SCC 607 para-41 of which reads as under:-

“41. Where there is no insurance cover for a vehicle, the owner should be directed to offer security or deposit an amount, adequate to satisfy the award that may be

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