AU FINANCIERS(INDIA) LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Present petition under Articles 226 and 227 of the Constitution of India is filed by the petitioner company for challenging the legality and validity of the order dated 30.11.2016 passed in Criminal Misc. Application No.3692 of 2016.

(2.) Background of facts on account of which the present petition has come up for consideration is that the petitioner company is running the business of advancing financial facilities to the needy persons by executing contracts and loan agreements on stipulated terms. In respect of the said business, the petitioner company provided loan to one Kantilal Kalal for purchase of vehicle, i.e. Scorpio car, bearing registration No.GJ-09 BC-7056. The said vehicle was then run by said Kantilal Kalal and on 19.6.2016, when Kantilal Kalal along with his associate one Mr. Gopal Panchal, while traveling from Sagwara to Ahmedabad, were intercepted by the investigating team wherein it was found that they were carrying and transporting contraband heroin substance to the extent of 1.196 Kg. and after completing necessary formalities, these persons were arrested, produced before the Court on 22.6.2016 and the vehicle in question was seized as muddamal article.

(3.) The petitioner company, claiming to be the owner by virtue of hypothecation agreement, came out with a request to release the said vehicle, i.e. Scorpio car, so as to fetch the outstanding loan amount by selling away the same. With this request, an application was submitted before the Court below, namely learned City Civil Judge, Court No.23, at Ahmedabad under Sections 451 read with Section 457 of the Code of Criminal procedure and the said application was registered as Criminal Misc. Application No.3692 of 2016. So, in substance, the vehicle in question was seized as a muddamal in connection with a complaint, being C.R. No.03 of 2016 being Narcotic Control Bureau / Ahmedabad Zonal Unit Complaint, for the offences punishable under Sections 8(c), 21(c) and 29 of the Narcotic Drugs and Psychotropic Substances Act, 1985 ('NDPS Act'). At that time, the investigation was going on, as a result of which, the investigating machinery, i.e. Narcotic Control Bureau, specifically opposed release of the said vehicle in favour of the petitioner company by filing detailed affidavit-in-reply on 18.10.2016 and after hearing both the sides, learned City Civil and Sessions Judge, Court No.23, Ahmedabad was pleased to reject the application of the petitioner company vide order dated 30.11.2016, which is made the subject matter of the present petition before this Court.