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2025 Supreme(Online)(SC) 10344

2025 INSC 1258


REPORTABLE


IN THE SUPREME COURT OF INDIA


CRIMINAL APPELLATE JURISDICTION


CRIMINAL APPEAL NO(S). OF 2025


(Arising out of SLP (Crl.) No(s).8698 of 2025)


DENASH ….APPELLANT(S)


VERSUS


THE STATE OF TAMIL NADU ….RESPONDENT(S)

Courts retain jurisdiction under criminal procedure laws to order the interim release of seized vehicles under the drug control regime. Administrative disposal rules are supplemental and cannot extinguish the judicial authority to protect the properties of innocent third-party owners pending trial.

Headnote:(A) Narcotic Drugs and Psychotropic Substances Act, 1985 - Sections 60 and 63 - Code of Criminal Procedure, 1973 - Sections 451 and 457 - Bharatiya Nagarik Suraksha Sanhita - Sections 497 and 503 - Narcotic Drugs and Psychotropic Substances (Seizure, Storage, Sampling and Disposal) Rules, 2022 - Interim release of seized conveyance - Jurisdiction of Special Court - Rules of 2022, being subordinate legislation, do not override power of courts to grant interim release of seized conveyances - Procedure under Rules is supplemental and not an ouster of judicial power - (Paras 13, 27, 28, 29)

(B) Confiscation of property - Right to hearing - Confiscation as a measure of deprivation of property requires adherence to natural justice - Statutory scheme contemplates an opportunity of hearing for claimants - Non-accused owner’s right to seek release - Court may grant interim release where owner proves absence of knowledge or connivance - (Paras 21, 22, 25, 26)

Facts of the case:
The owner of a transport vehicle sought the release of the vehicle apprehended for allegedly carrying illicit substances. The owner was not an accused in the chargesheet and maintained that the transportation of the contraband occurred without their knowledge or connivance. The lower courts rejected the plea on the grounds that the authority to dispose of seized conveyances rested exclusively with an administrative committee established under specific disposal rules.

Findings of Court:
The court held that the procedural rules introduced in 2022 are supplemental to the parent legislation and do not divest the court of its jurisdiction. The power to determine the legality of confiscation and the interim custody of seized property remains with the court. An innocent owner is entitled to judicial scrutiny to prevent undue deprivation of property.

Issues: The primary issue was whether the rules governing the administrative disposal of seized items preclude the courts from exercising their judicial authority to grant interim release of a conveyance pending the conclusion of a trial.

Ratio Decidendi: The power to determine the fate of seized conveyances is a judicial function vested in the court, which cannot be superseded by administrative disposal protocols. Protecting the rights of a bona fide owner who is not involved in the offence is essential, and the court must balance this with the statutory provisions for confiscation.

Result: Appeal allowed.

J U D G M E N T

Mehta, J.

1. Heard.

2. Leave granted.

3. The appellant herein has approached this Court through this appeal by special leave for assailing the judgment dated 20th December, 2024 passed by the learned Single Judge of the Madurai Bench of the Madras High Court, (1 Hereinafter, being referred to as the “High Court”.) in Criminal Revision Case (MD) No.1021 of 2024, whereby the prayer made by the appellant for interim custody of his lorry bearing registration no. TN 52 Q 0315 (Ashok Leyland, 14 wheeler), (2 Hereinafter, being referred to as “the vehicle”.), was rejected.

Brief Facts: -

4. The appellant is the owner of the vehicle in question, which was lawfully hired for transporting 29,400 MT of iron sheets from M/s S.S. Steel and Power, Chhattisgarh to Ashok Steels, Ranipet, Tamil Nadu. For this purpose, the vehicle had been assigned to driver Kannan @ Venkatesan (accused No. 1), Deva (accused No. 2), Senthamalivalavan (accused No. 3), and Tamil Selvan (accused No. 4). During the course of transit, on 14th July, 2024, the officers of Police Station Neyveli Township, intercepted and searched the vehicle, whereupon 1.5 kilograms of Ganja was found concealed beneath the driver Kannan’s (accused No. 1) seat, and an additional 1.5 kilograms each was recovered from the personal possession of the other three accused, thereby bringing the total quantity of seized Ganja to 6 kilograms. All four accused persons present in the vehicle were arrested. Pursuant to the seizure, First Information Report No. 220 of 2024 was registered at P.S. Neyveli Township, District Cuddalore, for offences punishable under Sections 8(c), 20(b)(ii)(B), 25 and 29(1) of the Narcotic Drugs and Psychotropic Substance Act, 1985 , (3 For short “NDPS Act”.). Upon conclusion of the investigation, chargesheet was filed against the aforesaid four accused for the said offences. It is important to note that the appellant was not arraigned as an accused in the report filed under Section 173(2) of the Code of Criminal Procedure, (4 For short “CrPC”.) [Section 193(3) of Bharatiya Nagarik Suraksha Sanhita, (5 For short “BNSS”.)].

5. Being aggrieved by the continued seizure of his valuable transport vehicle, the appellant moved an application under Section 497 BNSS [ Section 451 CrPC], being Criminal Miscellaneous Application No. 5495 of 2024, before Additional District Judge/Presiding Officer, Special Court under Essential Commodities Act, Thanjavur, (6 Hereinafter, being referred to as the “Special Court”.), seeking interim release of the seized vehicle on supurdagi pending conclusion of trial.

6. The Special Court, vide order dated 9th September, 2024 dismissed the aforesaid application filed by the appellant on the ground that the vehicle seized under the provisions of the NDPS Act was not amenable to release on interim custody by invoking the provisions under Sections 451 and 452 of CrPC [Sections 497 and 498 BNSS], as the same was liable to confiscation under Section 63 of the NDPS Act.

7. Being aggrieved, the appellant approached the High Court for assailing the order of the Special Court by filing Criminal Revision Case (MD) No. 1021 of 2024 which came to be rejected by the impugned judgment.

8. The High Court held that pursuant to introduction of the Narcotic Drugs and Psychotropic Substances (Seizure, Storage, Sampling and Disposal) Rules, 2022, (7 For short “Rules of 2022”.), the Drug Disposal Committee alone had the authority and jurisdiction to adjudicate upon the disposal of the property which included seized drugs as well as the conveyances. The High Court further held that since the Rules of 2022 vested exclusive jurisdiction with the Drug Disposal Committee, it could be presumed that the Committee was empowered to consider requests for interim release of a seized conveyance as well. Accordingly, the revision preferred by the appellant was dismissed upon which, the appellant is before us by way of the instant appeal with special leave.

9. Learned

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