UNION OF INDIA Vs. JUDICIAL MAGISTRATE EASTERN RAILWAY

JUDGEMENT

(1.) STATION Officer, G.R.P., informed the Commissioner of Income-tax, Varanasi, that on December 25, 1981, one Vinod Kumar Jaiswal, son of Hira Lal Jaiswal, resident of Imamganj, Durga Devi, Mirzapur, was travelling by 2-DN Kalka Mail in a three tier bogie. From his possession currency notes of the value of Rs. 4,63,000 and some clothes were recovered which had been kept in a brief case. Vinod Kumar has been challenged under ss. 41/102, Cr. PC read with s. 411, I.P.C. The Commissioner having reason to believed that the assets represented undisclosed income, issued warrant of authorization under s. 132A of the I.T. Act (From No. 45C) read with r. 112D of the I.T. Rules, 1962, in he name of the STATION House Officer, G. R. P. Mughalsari, appointing Sri S. N. Kapor as the authorities officer and directing him to take possession and control of the assets. It appears that the S.H.O, G.R.P., Varanasi, did not deliver possession of the seized currency unless orders have been obtained from the court. On January 1, 1982, Sri Rajendra Kumar Panndey filed an application in the Court of Judicial Magistrate (R), Varanasi, praying that the amount in question be released in his favour or in favour of the accused, Vinod Kumar. The case set up in this application was that Sri Vinod Kumar is an employee of the firm M/s. Vindya Metal corporation, Bamariaya told, Mirzapur City, of which Santosh Kumar Jaiswal, resident of Calcutta, is a partner. The accused, Vinod Kumar Jaiswal, from whose possession the cash was recovered, is the nephew of Santosh Kumar and was serving as a muneem in the aforesaid firm. The said money was being taken by Sri Santosh Kumar for the purposes of participation in an auction for the purchase of zinc which was to be held on December 29, 30, 1981, at Calcutta under the instruction of the Manager, Materials Van, Steel Authorities of India Ltd., Rourkela Steel Plant. While Sri Santosh Kumar was processed on his journey, the G.R.P. Mughalsarai, illegal detained him and seized the money in question. The tax has been paid on the seized money, no offence was made to under s. 411, I.P.C. On January 4, 1981, Sri S. N. Kapoor, ITO/Authorized Officer, (F) Ward, officer, G.R.P., to deliver the assets to him. Objection thereto was filed by Sri R. K. Pandey, vide annex 7. Application, annex. 8, was again filed by Sri S. N. Kapoor. Authorize Officer giving further details and praying for the release of the sum of Rs. 4,63,000 seized from Vinod Kumar. Thereafter, the impugned order was passed on February 3, 1982, by the Judicial Magistrate, Varanasi, directing the delivery of the assets to Rajendra Kumar Pandey. Aggrieved thereby, the instant revision was filed by the Union of India.

(2.) SECTION 457, Cr. PC, refers to the procedure to be adopted by the police upon seizure of property. Admittedly, the seizure has been made by the G.R.P., Mughalsarai. SECTION 457, Cr. PC runs as follows: