{"id":131550,"date":"2011-05-25T00:00:00","date_gmt":"2011-05-24T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-financial-vs-state-on-25-may-2011"},"modified":"2016-03-21T20:10:41","modified_gmt":"2016-03-21T14:40:41","slug":"mahindra-mahindra-financial-vs-state-on-25-may-2011","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-financial-vs-state-on-25-may-2011","title":{"rendered":"Mahindra & Mahindra Financial … vs State on 25 May, 2011"},"content":{"rendered":"
Rajasthan High Court – Jodhpur<\/div>\n
Mahindra & Mahindra Financial … vs State on 25 May, 2011<\/div>\n

<\/p>\n

<\/pre>\n
                             1<\/span><\/p>\n
  IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN
\n                       AT JODHPUR<\/p>\n
    Mahindra & Mahindra Financial Services Ltd.\n<\/p>\n
                       V\/s.\n<\/p>\n
                State of Rajasthan<\/p>\n
    S.B. Criminal Revision Petition No.840\/2010<\/p>\n
             S.B. Criminal Revision Petition
\n            under Section 397\/401 of Cr.P.C.\n<\/p>\n<\/p>\n
Date of Order                    ::      May 25, 2011<\/p>\n
          HON’BLE MR.JUSTICE R.S.CHAUHAN<\/p>\n
Mr. M.L. Khatri for the petitioner.\n<\/p>\n
Mr. Anil Upadhyay PP for the State.\n<\/p>\n<\/p>\n
          The issue which has arisen before this Court in<\/p>\n
the present case is that whether the finance company<\/p>\n
which had granted a loan to the owner for buying a vehicle<\/p>\n
is entitled to recover the vehicle in case, the higher<\/p>\n
purchaser defaults in payment and in case the offending<\/p>\n
vehicle is involved in commission of criminal offence?<\/p>\n
          The issue arises in the following background: on<\/p>\n
08.05.2008, the police found a Bolero Jeep, bearing<\/p>\n
engine AC 44 G 62510 and Chasis No.42 G 3754. The<\/p>\n
registration number of the vehicle is RJ 16 T 1440. The
\n                                   2<\/span><\/p>\n
police had discovered 11 bags of doda post, weighing 324<\/p>\n
Kg. doda post powder. Thus, a case was chalked out for<\/p>\n
offences under the NDPS Act and the vehicle was duly<\/p>\n
seized. Since the petitioner company had granted a loan<\/p>\n
to Daluram for the said vehicle, since Daluram had failed<\/p>\n
to repay the loan amount, the petitioner-company had<\/p>\n
filed an application under Section 457 Cr.P.C. before the<\/p>\n
learned trial Court. It prayed that the custody of the<\/p>\n
vehicle   be   given   to   it.   However,   vide   order   dated<\/p>\n
30.07.2010, the said application was dismissed. Hence,<\/p>\n
this petition before this Court.\n<\/p>\n<\/p>\n
          The learned counsel for the petitioner has relied<\/p>\n
upon the cases of Sunderbhai Ambalal Desai V\/s. State of<\/p>\n
Gujarat [JT 2002 (10) SC 80), Bharat Mehta V\/s. State by<\/p>\n
Inspector of Police, Chennai [AIR 2008 SC 1970] and on<\/p>\n
the case of General Insurance Council & Ors. V\/s. State of<\/p>\n
Andhra Pradesh & Ors. [2010 Cri. L.J.2883] to buttress his<\/p>\n
contention that even if the vehicle is involved in a criminal<\/p>\n
offence, since the petitioner company had been shown as<\/p>\n
the owner of the offending vehicle, it is entitled to seek<\/p>\n
the custody of the vehicle. Secondly, the Apex Court had<\/p>\n
laid down certain guidelines for exercising of power under<\/p>\n
Section 451 Cr.P.C. in the case of Sunderbhai Ambalal
\n                                   3<\/span><\/p>\n
Desai (supra). However, the said guidelines have been<\/p>\n
ignored    by   the   learned     Judge    while   dismissing   the<\/p>\n
application under Section 451 Cr.P.C.<\/p>\n
           On the other hand, the learned Public Prosecutor<\/p>\n
has vehemently contended that under the provisions of<\/p>\n
NDPS Act, the vehicle is subject to confiscation by the<\/p>\n
Government. Therefore, the custody of the vehicle should<\/p>\n
not be given to the finance company.\n<\/p>\n<\/p>\n
           Heard the learned counsel for the parties and<\/p>\n
perused the impugned order as well as the case law cited<\/p>\n
at the Bar.\n<\/p>\n<\/p>\n
           In   the   case   of       Sunderbhai   Ambalal   Desai<\/p>\n
(supra), the Hon’ble Supreme Court has laid down the<\/p>\n
guidelines for the exercise of power under Section 451<\/p>\n
Cr.P.C. The guidelines dealing with the vehicles are as<\/p>\n
under :-\n<\/p>\n
           “13. Learned senior counsel Mr. Dholakia,
\n           appearing for the State of Gujarat further
\n           submitted that at present in the police
\n           station premises, number of vehicles are
\n           kept unattended and vehicles become junk
\n           day by day. It is his contention that
\n           appropriate directions should be given to
\n           the magistrates who are dealing with such
\n           questions to hand over such vehicles to its
\n                     4<\/span><\/p>\n
owner or to the person from whom the said
\nvehicles are seized by taking appropriate
\nbond and the guarantee for the return of
\nthe said vehicles if required by the court at
\nany point of time.\n<\/p><\/blockquote>\n
14. However,      the     learned    counsel
\nappearing for the petitioners submitted that
\nthis question of handing over of vehicles to
\nthe person from whom it is seized or to its
\ntrue owner is always a matter of litigation
\nand a lot of arguments are advanced by the
\nconcerned persons.\n<\/p><\/blockquote>\n
15. In our view, whatever be the situation,
\nit is of no use to keep seized vehicles at the
\npolice stations for a long period. It is for the
\nMagistrate to pass appropriate orders
\nimmediately by taking appropriate bond and
\nguarantee as well as security for return of
\nthe said vehicles, if required at any point of
\ntime. This can be done pending hearing of
\napplications for return of such vehicles.<\/p>\n
16. In case where the vehicle is not
\nclaimed by the accused, owner, or the
\ninsurance company or by third person, then
\nsuch vehicle may be ordered to be
\nauctioned by the court. If the said vehicle is
\ninsured with the insurance company then
\ninsurance company be informed by the
\ncourt to take possession of the vehicle
\nwhich is not claimed by the owner or a third
\nperson. If insurance company fails to take
\npossession the vehicles may be sold as per
\nthe direction of the court. The court would
\npass such order within a period of six
\nmonths from the date of production of the
\nsaid vehicle before the court. In any case,
\nbefore handing over possession of such
\nvehicles, appropriate photographs of the
\nsaid vehicle should be taken and detailed
\npanchnama should be prepared.\n<\/p>\n
                              5<\/span><\/p>\n
          Thus, according to the Apex Court even if the<\/p>\n
vehicle were involved in a commission of crime, even then<\/p>\n
both in the interest of the owner and in the interest of the<\/p>\n
nation, the vehicle should be returned to the owner after<\/p>\n
imposing certain conditions. Moreover, in the case of<\/p>\n
Bharat Mehta (supra), a case under the Excise Act, the<\/p>\n
Hon’ble Supreme Court has noted that according to the<\/p>\n
hire purchase agreement, the finance company is shown<\/p>\n
as an owner. Therefore, instead of letting the vehicle be<\/p>\n
devalued by exposing it to natural elements, the Apex<\/p>\n
Court had directed that the vehicle should be returned to<\/p>\n
the finance company. The present case is squarely<\/p>\n
covered by the case of Sunderbhai Ambalal Desai (supra)<\/p>\n
and the case of Bharat Mehta (supra).<\/p>\n
          Keeping in view the guidelines established by<\/p>\n
the Apex Court in the case of Sunderbhai Ambalal Desai<\/p>\n
(supra), this Court has no hesitation in setting aside the<\/p>\n
order dated 30.07.2010 and to direct that the custody of<\/p>\n
the Bolero Jeep, engine No. AC 44 G 62510, chasis No.42<\/p>\n
G 37554 and Registration No.RJ 16 T 1440, shall be<\/p>\n
returned forthwith to the petitioner-company provided the<\/p>\n
petitioner-company submits a bank guarantee of the value<\/p>\n
of the bolero jeep before the learned trial Court. Moreover,
\n                                6<\/span><\/p>\n
the finance company is directed not to transfer or to sell<\/p>\n
the said bolero jeep to a third party. Furthermore, it shall<\/p>\n
submit a written undertaking before the learned trial court<\/p>\n
that in case the bolero jeep is required for the purpose of<\/p>\n
confiscation, the same shall be made available to the<\/p>\n
learned trial Court at the time of passing of the final<\/p>\n
judgment in the criminal trial.\n<\/p>\n<\/p>\n
            The revision petition is, hereby, allowed.<\/p>\n
                                         (R.S.CHAUHAN)J.\n<\/p>\n
A.Asopa\/-<\/p>\n","protected":false},"excerpt":{"rendered":"
Rajasthan High Court – Jodhpur Mahindra & Mahindra Financial … vs State on 25 May, 2011 1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR Mahindra & Mahindra Financial Services Ltd. V\/s. State of Rajasthan S.B. Criminal Revision Petition No.840\/2010 S.B. Criminal Revision Petition under Section 397\/401 of Cr.P.C. Date of Order :: […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,19],"tags":[],"class_list":["post-131550","post","type-post","status-publish","format-standard","hentry","category-high-court","category-rajasthan-high-court-jodhpur"],"yoast_head":"\nMahindra & Mahindra Financial ... vs State on 25 May, 2011 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-financial-vs-state-on-25-may-2011\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mahindra & Mahindra Financial ... vs State on 25 May, 2011 - 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