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B.S. Rawant, Asst. Collector Of Customs, Bombay v. Shaikh Abdul Karim

Bombay High Court
Feb 2, 1989
Smart Summary (Beta)

Structured Summary of Opinion — Suresh, J.

Factual and Procedural Background

On August 31, 1987, Bombay Customs intercepted a taxi (registration MMO 2649) in Bombay. The driver and sole occupant, Taj Mohd. Jan Mohd. Pathan, was arrested after Customs discovered six packages (about 76 kgs) of brown powder purported to be brown sugar and 18 kgs of white powder purported to be heroin. The taxi was seized under a panchanama and the accused was charged under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act); the criminal case remained pending.

On January 29, 1988, respondent No. 1 (who claimed ownership of the taxi and produced a taxi permit and valid driving licence) applied before the Additional Chief Metropolitan Magistrate for return of the taxi, contending the vehicle was rusting while lying unattended at Customs House. The Magistrate, after hearing, ordered return of the taxi to the applicant on execution of a bond of Rs. 90,000 with one surety in like amount, stating the vehicle was likely to be damaged if not in use and noting the accused had no objection.

Customs Authorities filed a criminal revision application challenging the Magistrate's order. The case considered questions about jurisdiction and the applicability of the NDPS Act and certain provisions of the Code of Criminal Procedure, 1973 (Cr. P. C.), including sections 451 and 457(1), and related NDPS provisions dealing with seizure, custody and confiscation (notably sections 41–55, 60 and 63 of the NDPS Act).

Legal Issues Presented

  1. Whether the learned Magistrate had jurisdiction to pass an order for return/interim custody of a vehicle seized under the NDPS Act, or whether that jurisdiction rests exclusively with the Court of Sessions that will try the matter.
  2. Whether provisions of the NDPS Act (particularly sections 60 and 63, and seizure/ custody provisions such as sections 42, 51, 53 and 55) preclude the application of Cr. P. C. sections 451 or 457(1) (interim custody / custody of property) pending trial.
  3. Whether, assuming jurisdiction, the learned Magistrate exercised his discretion judicially in ordering return of the vehicle on the facts of this case.

Arguments of the Parties

Prosecution (Mr. Gupte)

  • Contended that the learned Magistrate had no jurisdiction to order return of the taxi because the case was to be tried by the Sessions Judge, who alone has jurisdiction to pass such orders.
  • Argued that under the NDPS Act there is no scope for interim orders handing over a vehicle pending trial when that vehicle is liable to confiscation; confiscation proceedings occur at trial under sections 60 and 63, and the owner can defend at that stage.
  • Asserted that sections 451 and 457 of the Cr. P. C. do not apply because the NDPS Act's provisions on seizure, arrest and custody (sections 41–55) supplant corresponding Cr. P. C. provisions to the extent of any inconsistency (relying on section 51 of the NDPS Act).
  • Submitted that only where the second proviso to section 63(2) (sale/disposal in cases of speedy decay or for owner's benefit) applies may a court direct sale or disposal; that proviso does not authorize general interim release of vehicles.
  • Relied on sections 42 and 43 (entry, search, seizure and arrest without warrant/authorisation) and section 55 (police to take charge and keep articles pending orders of the Magistrate) to show NDPS provides its own regime of custody.

Respondent / Owner's Counsel (Mr. Sabnis)

  • Submitted that where two reasonable interpretations are possible, particularly affecting property or liberty, the interpretation less burdensome on those rights should be preferred.
  • Argued that the NDPS Act does not contemplate extinction of an innocent owner's rights; an innocent owner retains rights to be heard under sections 60(3) and 63, including a right to interim custody in deserving cases.
  • Maintained that in absence of an express prohibition in the NDPS Act against interim custody, the Magistrate may exercise powers under Cr. P. C. sections 451 or 457(1) to grant interim custody subject to conditions that safeguard availability of the vehicle for confiscation at trial.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court conducted a statutory analysis of the NDPS Act provisions and their interaction with the Cr. P. C. The analysis proceeded in several discrete steps, summarized below as reflected in the opinion:

  1. Identification of relevant NDPS provisions: the court set out sections that govern confiscation (section 60), the procedure for confiscation (section 63), and seizure/custody powers (sections 41–55, especially 42, 51, 53 and 55). The provisions show that animals or conveyances used in committing NDPS offences are liable to confiscation unless the owner proves lack of knowledge/connivance and that reasonable precautions were taken (section 60(3)). Section 63 governs when and how confiscation is decided and provides certain provisos (including sale where perishable or sale benefits owner).
  2. Consideration of the prosecution's submission that NDPS supplants Cr. P. C.: the court acknowledged that section 51 of the NDPS Act makes Cr. P. C. provisions applicable only insofar as they are not inconsistent with the NDPS Act. It accepted the premise that some Cr. P. C. provisions might be inapplicable where inconsistent.
  3. Examination of whether sections 451 or 457(1) Cr. P. C. are inconsistent with the NDPS Act: the court reasoned that the NDPS scheme requires vehicles to be available for confiscation at trial, but this requirement does not mean the vehicle must remain at the police station for the entire pendency. The court rejected the prosecution's narrow reading that only the sale/disposal proviso to section 63(2) allows any act with respect to custody; that proviso addresses disposal/sale where necessary and is not apposite to requests for interim custody by an innocent owner.
  4. Interpretation of section 55 and effect on Magistrate's power: section 55 provides that the officer-in-charge shall take charge of and keep in safe custody all articles seized "pending the orders of the Magistrate." The court construed "pending the orders of the Magistrate" as allowing the Magistrate, where not inconsistent with the NDPS Act, to consider applications for interim custody under Cr. P. C. sections 451 or 457(1), provided the provisions are not inconsistent with the NDPS scheme.
  5. Protection of innocent owners: the court accepted the respondent's submission that the NDPS Act does not intend extinction of an innocent owner's rights. Because sections 60(3) and 63 ensure hearing and appeal rights for non-convict claimants, in deserving cases interim custody may be granted to protect those rights, subject to guarantees that the vehicle will remain available for confiscation if so ordered later.
  6. Jurisdictional scope prior to committal to Sessions: the court observed that sections 52(2) and 55 refer to the Magistrate before whom arrested persons and seized articles are to be produced; until committal to the Sessions Court, the Magistrate has charge of the seized property and may pass appropriate interim orders concerning custody and production.
  7. Assessment of the Magistrate's order in this case: although the court found that a Magistrate may have jurisdiction to pass an interim custody order in appropriate circumstances, it concluded that the specific order under challenge was arbitrary and inadequately reasoned. The Magistrate's order failed to disclose the arguments and did not discuss materials and documents placed before him (as pointed out by Mr. Gupte). The court emphasized that even when discretion is vested in the Magistrate (under section 457(1) Cr. P. C.), it must be exercised judicially and not cavalierly.
  8. Procedural disposition: considering incompleteness of the record and that all facts were not before it, the court chose not to decide the merits on the existing record. Instead, it set aside the Magistrate's order and directed that respondent No. 1 be at liberty to move in the appropriate Court (the Sessions Court where the case was committed) on a fresh application; the prosecution was given liberty to file affidavits and documents in response and the Sessions Judge was to decide the matter on merits after hearing both sides.

Holding and Implications

Holding: The impugned order dated March 9, 1988, passed by the learned Magistrate is set aside and the rule is made absolute. (The opinion concludes: "Rule made absolute.")

Direct consequences and practical implications as specified in the opinion:

  • Respondent No. 1 is granted liberty to file a fresh application in the Court of Sessions where the case has been committed.
  • On such application, the prosecution is permitted to file a proper affidavit and reply with any documents it deems appropriate.
  • The learned Sessions Judge is to decide the matter on its merits after hearing both parties.
  • The court did not decide the substantive merits on the present record and directed re-adjudication before the appropriate forum; the Magistrate's order was set aside because the exercise of discretion lacked adequate reasons and disclosure of relevant material.

Broader jurisprudential note in the opinion: The court held that the NDPS Act does not necessarily exclude the operation of Cr. P. C. sections 451 or 457(1) where those sections are not inconsistent with the NDPS scheme, and that an innocent owner may, in deserving cases, seek interim custody subject to guarantees that the property will remain available for confiscation. However, the opinion does not purport to lay down a new sweeping precedent on all such applications; it remitted the matter for decision on the merits by the Sessions Judge.

Rule made absolute.
Show all summary ...

Suresh, J.:— On August 31, 1987 the Bombay Customs, intercepted a taxi bearing registration No. MMO 2649 at the junction of Kesnavji Naik Path and S.V Road, Bombay-400009. One Taj Mohd. Jan Mohd. Pathan was the driver and the sole occupant of the taxi at the time of interception. It was found that the taxi was being used for carrying six packages weighing about 76 kgs. containing brown powder purported to be brown sugar and 18 kgs. of white powder purported to be Heroin. The said person was arrested and the taxi was seized under a panchanama. The accused has been chargad under the provisions of the Narcotic Drugs and Psychotropic Substances Act, 1985 (hereinafter referred to as the “NDPS Act”) and the case is pending.

2. In the meanwhile on January 29, 1988 the present respondent No. 1 made an application before the learned Additional Chief Metropolitan Magistrate, 8th Court, Esplande, Bombay, for return of the said taxi, on the basis that he is the owner of the said taxi and that he has a taxi permit and a valid motor driving licence and that the taxi is lying at the Customs House unattended and its machinery is getting rusted since last several months and that no useful purpose would be served by keeping the abovementioned taxi in the custody of the Customs authorities. On this application, the learned Magistrate issued a notice to the Customs Authorities and after hearing both the parties, the learned Magistrate passed the following order:

“Taxi to be refurned to applicant on his executing bond of Rs. 90,000/- with one surety in the like amount.

Taxi being a mechanically propelled vehicle is likely to be damaged if not in use and therefore it is expedient in the interest of justice to return the taxi to the registered owner (Applicant). Accused has given his no objection and under the N.D.P.S Act Court has power to pass order regarding disposal of vehicle.”

3. It appears that Mr. Gupte, who appeared for the prosecution, brought to the notice of the learned Magistrate various documents and material indicating how respondent No. 1 could not claim the taxi on the basis of ownership rights. However, there was no affidavit before the learned Magistrate in this behalf. So also the order is absolutely silent on all these aspects argued by Mr. Gupte, of which argument, I have no doubt whatsoever.

4. It is against this order, the Customs Authorities have filed the present criminal revision application.

5. Mr. Gupte advanced several propositions. Firstly, he contended that the learned Magistrate could have had no jurisdiction to pass any order for return of the taxi inasmuch as, the case is to be tried by the learned Sessions Judge and he alone has the jurisdiction to pass such an order. Secondly, he submitted that if one has regard for the scheme of the NDPS Act, 1985 there is no question of passing any interim order of handing over to any person, any conveyance, or vehicle pending the trial, which vehicle is liable to be confiscated ultimately. He further submitted that section 451 of the Cri. P. Code or for that matter section 457 of the Cr. P. Code will have no application whatsoever in view of certain provisions of the said NDPS Act, 1985.

6. The relevant provisions which provide for disposal and confiscation of the properties or the conveyance used for the purpose of committing any offence under the said Act are as follows:

Section 60. Liability of illicit drugs, substances, plants, articles and conveyances to confiscation—

(1) ……….

(2) ……….

(3) Any animal or conveyance used in carrying any narcotic drug or psychotropic substance or any article liable to confiscation under sub-section (1) or sub-section (2) shall be liable to confiscation, unless the owner of the animal or conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any and the person-in-charge of the animal or conveyance and that each of them had taken all reasonable precautions against such use.”

Section 63. Procedure in making confiscations—(1) In the trial of offences under this Act, whether the accused is convicted or acquitted or discharged, the Court shall decide whether any article or thing seized under this Act is liable to confiscation under section 60 or section 62 and if it decides that the article is so liable, it may order confiscation accordingly.

(2) Where any article or thing seized under this Act appears to be liable to confiscation under section 60 or section 61 or section 62, but the person who committed the offence in connection therewith is not known or cannot be found, the Court may inquire into and decide such liability and may order confiscation accordingy:

7. Provided that no order of confiscation of an article or thing shall be made until the expiry of one month from the date of seizure, or without hearing any person who may claim any right thereto and the evidence, if any, which he produces in respect of his claim:

8. Provided further that if any such article or thing, other than a narcotic drug, psychotropic substance, the opium poppy, coca plant or cannabis plant is liable to speedy and natural decay, or if the Court is of opinion that its sale would be for the benefit of its owner, it may at any time direct it to be sold; and the provisions of this sub-section shall, as nearly as may be practicable, apply to the net proceeds of the sale.

(3) Any person not convicted who claims any right to property which has been confiscated under this section may appeal to the Court of Session against the order of confiscation.”

9. On the basis of these provisions Mr. Gupte submitted that if a conveyance has been used for commission of any offence under this Act the same shall be liable to confiscation. He submitted that the confiscation shall take place only at the end of the trial. It is at that point of time the owner of the conveyance can approach the Court and if he satisfied the Court that the vehicle was used without the knowledge or connivance of the owner himself, or his agent, if any, or the person-in-charge of the conveyance and that each of them as the case may be, had taken all reasonable precautions against such use, the Court may not pass any order of confiscation. He further submitted that even if the Court passes any order of confiscation, it is open to the owner to appeal against such an order of confiscation. He, therefore, submitted that there is no provision under this Act whereby the vehicle can be given to any person, pending the hearing and disposal of the case.

10. Under the second proviso of section 63 sub-section (2) of the NDPS Act, 1985. It is open to the Court to dispose of, or sell the article if the article ts liable to speedy and natural decay, or if the Court is of opinion that its sale would be for the benefit of its owner, it may at any time direct it to be sold. Mr. Gupte also submitted that it is only in these contingencies, it is open to the learned Magistrate, to pass such an order and not otherwise.

11. Mr. Gupte further submitted that the Act provides for seizure and arrest and to that extent the provisions of the Criminal Procedure Code will not apply at all. In this connection he relied upon sections 41, 42, 43, 51, 52, 53 and 55 of the NDPS Act. It is better to quote some of these provisions to the extent that they are relevant for the present discussion. Section 41 provides for power to issue warrant and authorisation. It is section 42 which provides for power of entry, search, seizure and arrest without warrant or authorisation and in the present, case it is under section 42 the vehicle was seized. After seizure of the vehicle, the officer concerned can take charge of and keep in safe custody, pending the orders of the Magistrate, all articles seized under, this Act. That is provided under section 55 of the NDPS Act, 1985, which reads as follows:

“Section 55: Police to take charge of articles seized and delivered…An officer in-charge of a police station shall take charge of and keep in safe custody, pending the orders of the Magistrate, all articles seized under this Act within the local area of that police station and which may be delivered to him, and shall allow any officer who may accompany such articles to the police station or who may be deputed for the purpose, to affix his seal to such articles or to take samples of and from them and all samples so taken shall also be sealed with a seal of the police station.”

12. Even though the officer who has seized this vehicle is not a police officer, by virtue of section 53 he becomes one and he has the necessary powers of an officer-in-charge of a police station. Mr. Gupte has relied upon section 51 to say that the provisions of section 451 and also section 457(1) of the Cr. P. Code are not applicable. section 51 of the NDPS Act, 1985, is as follows:—

“Section 51. Provisions of the Code of Criminal Procedure, 1973 to apply to warrants, arrests, searches and seizures.—The provisions of the Code of Criminal Procedure, 1973 (2 of 1974) shall apply, in so far as they are not inconsistent with the provisions of this Act, to all warrants issued and arrests, searches and seizures made under this Act.”

13. I am told that in the present case the vehicle has not been produced before the Magistrate. The vehicle has also not been taken charge of by virtue of any warrant issued under the provisions of section 41. It is clear that an officer of the Customs has seized this vehicle under section 42 read with 43 of the NDPS Act, 1985 and by virtue of section 53 he is empowered as if he is an officer-in-charge of a police station. Under section 55 he shall take charge of and keep the same in safe custody and the vehicle shall be detained or kept sealed within the local area of the police station and the same shall be “pending the orders of the Magistrate”. What is the meaning of the words, “pending the orders of the Magistrate”? It is true that section 51 of the NDPS Act, 1985, says that the provisions of the Criminal Procedure Code will not apply, if they are inconsistent with the provisions of this Act in respect of warrants issued and arrests, searches and seizures made under this Act. Mr. Gupte submits that this must necessarily Include confiscation. I have no quarrel with this proposition of Mr. Gupte. But, I do not find, from reading of all these provisions, that these provisions necessarily exclude the operation of section 451 or 457(1) of the Cr. P. Code. Under sections 60 and 63 such an article or vehicle used for the purpose of commission of an offence under this Act is liable for confiscation. In other words, the article or the vehicle must be available at the time of the trial or at the end of the trial for the purpose of confiscation. It does not mean that the vehicle shall always remain at the concerned police station pending the trial. Mr. Gupte's submission is that it is only as provided under the second proviso, under sub-section (2) of section 63, an order can be passed for sale or disposal of the article, if these contingencies apply. I am not prepared to accept this submission of Mr. Gupte. In fact, this proviso has no application to the present case. This proviso applies if the Court wants to dispose of or sell the vehicle. Such a question does not arise in this petition before me. There again, the idea is that if an article is liable to speedy and natural decay or if the Court is of opinion that its sale would be for the benefit of its owner the Court may direct it to be sold and the sale proceeds shall remain with the Court so as to make it available for the purpose of making an order of confiscation which may have to be passed as provided under the Act. In fact, we are not concerned with a situation of this kind at all. Here is a vehicle, of which respondent No. 1 claims to be the owner and according to him, he is not concerned with the offence and he is seeking an order for the custody of the vehicle pending the disposal of the case and he says that he would produce the same subject to terms and conditions imposed upon, at the time of the final hearing of the matter. Since there is no provision under the Act prohibiting interim custody and if section 451 or 457(1) of the Cr. P. Code is not inconsistent with the provisions of this Act, there is no reason why such an application cannot be considered by the Court.

14. The object of the Act is to see that the vehicle which is used for such an offence is not made available to the persons who have indulged in these activities. They shall not have the benefit of such a vehicle. By and large if an accused person is himself the owner of the vehicle and he uses such a vehicle for the purpose of conveying the drugs, then of course, it is possible for the prosecution to contend that it is against the interest of justice that such a vehicle be given to the accused pending the trial. But in a given case, it might be that a vehicle belonging to an innocent owner is stolen by the accused and in that event, later on, if the vehicle is intercepted and seized by the officer, it does not mean that such an owner has to wait till the trial is completed, for the purpose of getting an order of return of the vehicle from the Magistrate. In such cases, subject to a guarantee that the vehicle becomes available for the purpose of confiscation, if any, the Court has necessarily the jurisdiction to pass an order for interim custody either under section 451 or 457(1) of the Cr. P. Code, as the case may be. An order under section 451 of 457(1) of the Cr. P. Code guarantees return of the vehicle at time of the final hearing of the matter, or as and when called upon by the Court, it secures, subject to certain terms and conditions, the interim custody of the vehicle, pending the trial. In fact, the operation of section 451 or 457(1) of the Cr. P. Code comes into existence only after the vehicle is seized and brought into, safe custody, as provided under section 55 of the Act. If that is so, it cannot be said that section 451 or 457(1) of the Cr. P. Code is not any way inconsistent with the scheme of the Act.

15. Mr. Sabnis appearing for respondent No. 1 submitted that if two interpretations are possible in respect of any provision of law, particularly where it seeks to affect one's property or liberty, one depriving them altogether unreasonably and the other ensuring them without defeating the object of law, the latter will have to be preferred to the former. He is right. The NDPS Act does not contemplate exclusion or extinction of an innocent owner's right. He has a right to be heard both under section 60(3) and under section 63 of the Act, with a further right of appeal under section 63(3) of the Act. That must necessarily mean that in a deserving case he has a right to interim custody, which, in the absence of any provision under the Act, can only be granted by the exercise of powers either under section 451 or under section 457(1) of the Cr. P. Code.

16. Mr. Gupte submitted that in any event, the learned Magistrate has no powers to pass such an order inasmuch as, it is Sessions Court which tries the matter, will have to pass the order. I am not prepared to accept this submission of Mr. Gupte. Section 52(2) as also section 55 in terms refers to Magistrate before whom the persons arrested and articles seized shall be produced. Till the case is committed to the Court of Sessions, it is the Magistrate, who is in charge of such an article or vehicle and it is for him to pass such orders as are appropriate under the law. In the present case, if the vehicle has not been brought before the Magistrate, perhaps; it could be said that section 451 of the Cr. P. Code may not apply. But if one reads section 55 of the NDPS Act, 1985, together with section 457(1) Cr. P. Code, it could be said that the Magistrate has jurisdiction to pass an order as he thinks fit in respect of custody and production of the property, pending the trial.

17. This takes me to the other question viz., that assuming the learned Magistrate had jurisdiction to pass an order under section 451 or 57(1) Cr. P. Code whether the learned Magistrate could have passed an order in the facts and circumstances of this case and if so, whether it could be interfered with in revision or otherwise.

18. As far as the present order is concerned, I am more than convinced that the learned Magistrate has decided the matter in an arbitrary manner inasmuch as the order does not disclose the arguments advanced on either side and there is no discussion about the documents produced before the learned Magistrate. Under section 457(1) Cr. P. Code, the learned Magistrate has a discretion to pass an order granting interim custody or to decline. But in either case, the discretion has to be exercised judicially and not in a cavalier fashion. It is in this sense, the order deserves to be set aside. It is true that the present petition has been styled as criminal revision application. But I do find that the petitioner has sought to invoke the inherent jurisdiction of the Court under section 482 Cr. P. Code. In such circumstances the title of the petition becomes immaterial.

19. If the order has to be set aside the question is whether I should deal with the merits of the application. But I do not find certain difficulty in going into the merits of the case as all facts are not on record. I, therefore, suggested to the Advocates on either side, that the best course would be to have the order set aside and respondent No. 1 could prefer a separate application and the learned Judge concerned shall then deal with the matter on the merits of the case. Happily there has been a consensus on this.

20. I, therefore, pass the following order:

21. The impugned order dated March 9, 1988 passed by the learned Magistrate is hereby set aside.

22. I give liberty to respondent No. 1 to prefer a separate application in the Court of Sessions where the case has been committed.

23. On such application being filed, it is open to the prosecution to file a proper affidavit and reply on such documents as they think proper.

24. The learned Sessions Judge will decide the matter on merits, after hearing both the parties.

25. Rule is made absolute accordingly.

Rule made absolute.