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2022 Supreme(All) 373

IN THE HIGH COURT OF ALLAHABAD
Syed Aftab Husain Rizvi, J.
Abhishek Agarwal – Petitioner
Versus
State of U.P. And Others – Respondents
Matters Under Article 227 No. 5202 & 5204 of 2021
Decided On : 13-04-2022

Advocates:
Advocate Appeared:
For the Petitioner: Swetashwa Agarwal, Dinkar Lal

Point of Law : It is a general rule that case property should be released. It should not to be retained in custody of the court or the police for any time longer than what is absolutely necessary and it should be directly or indirectly disposed of and court must pass order for its disposal.

Headnote:

Constitution of India, 1950 - Article 227 – Indian Penal Code, 1860 - Section 420 - Molasses Control Act, 1964 – Section - 11/12 - Storage of Molasses - Raid - Allegations of FIR are that a secret information was received by complainant regarding storage of molasses, pursuant where to a raid was conducted by Excise Officials and upon asking for molasses related documents, no license or permit could be produced, instead four bills of purchase of Khansari Molasses weighing 755 quintal could only be produced – Whether the sample of Molasses pertains to Khandsari Molasss or that of Sugar Mil - Institute/National Sugar Institute has not been informed of any yardstick of differentiating between Molasses obtained through Khandsari or Sugar Mill - It is a general rule that case property should be released - It should not to be retained in custody of the court or the police for any time longer than what is absolutely necessary and it should be directly or indirectly disposed of and court must pass order for its disposal (Para 11).

Findings of the Court :

It was just and proper on the part of the Magistrate to release the molasses in favour of the petitioners after taking adequate surety bond after getting its value assessed by a competent authority and learned Magistrate may have imposed other conditions which it thinks necessary - Learned Magistrate has failed to exercise his jurisdiction properly - Learned revisional court has also failed to appreciate the facts and law on the point so both the orders are not justified and are liable to be set-aside

Result : Petitions allowed.

JUDGMENT :

1. These two petitions Under Article 227 of the Constitution of India are being heard together and are disposed of by a common order.

2. Heard Sri Swetashwa Agarwal, learned counsel for the petitioners, Ms. Sushma Soni, learned A.G.A. for the State and perused the record

3. These petitions Under Article 227 of the Constitution of India have been filed with the following prayers :

(I) Issue an appropriate order or direction setting aside the impugned order dated 17.9.2021 passed by the Additional Sessions Judge, Court No. 8, Bulandshahar in Criminal Revision No. 101 of 2021 Abhishek Agarwal Vs. State of U.P. as well as impugned order dated 8.7 2021 passed by the C.J.M. Bulandshahar in Case Crime No. 271 of 2021 State Vs. Abhishek Agarwal, under section 420 IPC and Section 11/12 U.P. Sheera Niyantran Adhiniyam, 1964, P.S. Kotwali Dehat, District Bulandshahar.

(ii) Issue an appropriate order or direction to the court below/C.J.M. Bulandshahar to release the molasses in question weighing 9492 quintal, seized by the O.P. No. 2 from the petitioner's firm-Khiansh Enterprises in connection with Case Crime No. 271 of 2021, under section 420 IPC and Section 11/12 UP. Sheera Niyantran Adhiniyam, 1964, P.S. Kotwali Dehat, District Bulandshahar.

4. In brief the facts are that an FIR Crime No. 271 of 2021, under section 420 IPC and 11/12 U.P. Molasses Control Act, 1964 was registered against the petitioners and one Tushar Agarwal and Sunil Kumar. The allegations of the FIR are that on 4.4.2021 a secret information was received by the complainant regarding storage of molasses, pursuant whereto a raid was conducted by the Excise Officials and upon asking for the molasses related documents, no license or permit could be produced, instead four bills of purchase of Khansari Molasses weighing 755 quintal could only be produced. The molasses stored in the tanks appeared to be much more and there was an apprehension of the same being manufactured by Sugar Mill and 9492 quintal of molasses was found stored in the storage tanks. Samples of molasses was taken at the spot as per the relevant Rules. One of the sample was made available to one Tushar at the factory premises and one sample was sent to the Regional Lab for examination and the seized molasses was given in the custody/superdagi of Unit Representative Tushar Agarwal, directing him not to use or sale the same and that the provisions of UP. Sheera Niyantran Niyamawali, 1974 and U.P. Sheera Nivantran Adhiniyam, 1964 have been violated, for which the first information report is being registered. After investigation charge-sheet has been submitted.

5. Learned counsel for the applicants submitted that the Excise Officials have initiated the prosecution of the petitioners on their own whims and fancies without there being any offence committed by them. Learned counsel further submitted that all the bills of purchase, GST Invoices and details of Stock Register were duly furnished by the petitioners to the Investigating Officer during the course of investigation regarding the trading of Khandsari Molasses undertaken by them, but no heed was deliberately paid to the same. The petitioners also brought on record the GST Registration Certificate of the firm Khiansh Enterprises, GST Bills and Returns from Jan. 2021 to March 2021, E. Way Bills, GST Bills and Stock Register relating to the purchase and sale of Khandsari Molasses, in support of the release application moved by them. Perusal of the aforesaid bills and invoices would reveal that the petitioners have been trading with various firms across State of U.P in respect of sale and purchase of Khandsari Molasses, upon which requisite taxes were duly paid.

It is further submitted that neither the Investigating Officer nor the Excise Officials disputed any of the Bills or Invoices or Stock Details furnished by the petitioners along with the release application regarding sale and purchase of Khandsari Molasses. However, relying upon the Lab Test Repor

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