Disposal of seazed vehicles

In   Sunderbhai        Ambalal    Desai  (2002) 10 SCC 283,  the       Supreme Court while      quoting      the   provisions Sections 451 and 457     of   the      Cr.PC,  observed in para 7 as under:-

             "7.     In our view, the powers under Section 451 Cr PC should be exercised

             expeditiously and judiciously. It would serve various purposes, namely:

             1.     owner    of   the article would not suffer because of its

             remaining     unused    or    by    its misappropriation;

             2. court or    the police would not be required to keep the

             article in safe custody;

             3.     if    the   proper panchnama before handing over possession of the article is prepared, that can be used in evidence instead of its production  before the court during the trial. If  necessary, evidence could also be recorded describing the nature of the property in detail; and

             4.     this jurisdiction   of the court to record evidence should be  exercised promptly so that there may not  be further chance of tampering with the  articles."

To safeguard the    interests   of the prosecution, it was directed that following measures should be adopted giving instances contained in para 12 reproduced hereinbelow:

             "12     For this purpose, if material on record indicates that such      articles  belong to the complainant at whose house theft, robbery    or   dacoity   has   taken

place,    then   seized    articles   be handed over to the complainant after:

             (1)     preparing       detailed     proper panchnama of such       articles;

             (2)     taking    photographs   of   such articles and a bond that      such articles would be produced if required at  the     time of trial; and

             (3)     after taking proper security."

While dealing with the seized vehicles from time to time by the police either in commission of various offences or abandoned vehicles or vehicles which are recovered during investigation of complaint of thefts,          the court observed as

under:-

               "17.    In our view, whatever be the situation, it is of no use to keep such seized vehicles at the police stations for a long period. It is for the Magistrate to pass appropriate orders immediately by taking appropriate bond and guarantee as   well as security for return of the said vehicles, if required at any point of time. This can be done pending hearing of  applications for return of such vehicles.

               18.   In case where the vehicle is not claimed by the accused, owner, or the  insurance company or by a third person, then such vehicle may be ordered to be auctioned by the court. If the said vehicle is insured with the insurance company then the insurance company be informed by the court to take possession of the vehicle which is not claimed by the owner or a third person. If the insurance  company fails to take possession, the vehicles may be sold as per the direction of the court. The court would pass such order within a period of six months from the date of production of the said vehicle  before the court. In any case, before  handing over possession of such vehicles, appropriate   photographs   of  the   said vehicle should be taken and detailed panchnama should be prepared."

In General Insurance Council & Ors.     V.        State of Andhra Pradesh & orsdecided on 19/04/2010, Considering       the   mandate   of    Section   451   read   with Section 457 of the Code, the Supreme Court  in   addition   to   aforesaid  directions,  gave following further directions with regard to seized vehicles are required to be given.

               "(A)    Insurer may be permitted to move a separate application for release of the recovered vehicle as soon as it is informed of such recovery before the Jurisdictional Court. Ordinarily, release shall be made within a period of 30 days from the date of the application. The necessary photographs may be taken duly authenticated   and   certified,   and   a detailed panchnama may be prepared before such release.

               (B)     The photographs so taken may be used as secondary evidence during trial.  Hence, physical production of the vehicle may be dispensed with.

               (C)     Insurer      would      submit     an undertaking/guarantee      to    remit    the proceeds from the sale/auction of the vehicle conducted by the Insurance Company in the event that the Magistrate finally adjudicates that the rightful ownership of the vehicle does not vest with the   insurer. The undertaking/guarantee would  be furnished at the time of release of the vehicle, pursuant to the application release    of    the    recovered    vehicle. Insistence    on  personal    bonds  may   be

dispensed with looking to the corporate   structure of the insurer."