SARWAN SINGH Vs. STATE

JUDGEMENT

(1.) THE Additional District Judge, Jullundur, - vide his order dated 18th April, 1973 has recommended the setting aside of the order dated 3rd October, 1970 of the Judicial Magistrate First Class, Phillaur who acting under section 523 of the Code of Criminal Procedure, 1898, hereinafter referred to as the 'old Code' delivered to the Superintendent Customs Department, Amritsar, a car, currency notes of Rs. 4,18,000 in the denomination of Rs. 100, Rs. 10 and Rs. 5 and 13 sovereigns of gold (British currency for adjudication under the Customs Act, 1962.

(2.) IN order to appreciate the recommendation of the Additional District Judge and the correctness or otherwise of the order of the Magistrate a reference to material facts would be necessary which can be stated thus : On 14th February, 1970, M M P1. Balwant Singh who was then patrolling the G.T. Road, at about 3 p.m. received secret information to the effect that some smugglers coming from Ludhiana in a green car were carrying arms and lakhs of money for the purpose of distributing the same to the relative of such persons who had gone to foreign countries. When the said car came within sight, it was got stopped despite an effort on the part of the driver to escape interception. The occupant of the front seat, namely Bodh Raj son of Khusi Ram Arora, Mohalla Telian, Bhatinda, tried to run away but was apprehended by the constable accompanying M M. P1 Balwant Singh. Two persons were sitting on the back seat of the said car namely, Ram Labhaya son of Gopal Dass, resident of Amritsar City, and Sarwan Singh son of Munshi Singh, resident of Bhatinda City. On a search of their persons, a key was recovered from the person of Ram Labhaya with which the suit case lying underneath the legs of Ram Labhaya and Sarwan Singh was opened in the presence of Kishan Chand advocate and one Piara Singh son of Rattan, Mahli Gate, Phagwara, who had arrived on the spot in the meantime. In the suit case were found lying currency notes of Rs. 4,18,000/- in the denomination of Rs. 100, Rs. 10, Rs. 5 and a 32 bore pistol loaded with bullets, besides eight bullets in a belt. On interrogation and further search of the person of Bodh Raj, 13 sovereigns of gold (British currency) lying in a cigarette box were recovered. The accused are said to have disclosed that they had their agents in other countries and were going to distribute the currency notes at Phagwara to the person whose relations were in foreign countries and who used to send money by illegal means. The police took into possession the currency notes, revolver, the belt of bullets and the key, besides the coat of Bodh Raj, cigarette box and the gold coverings. The car in question, Ambassador make No. RJQ-6022, was also taken into possession by the police. It was also said to have been mentioned by the accused in their statement that currency notes mentioned above were in lieu of the money or gold imported from foreign countries by illegal means and that the gold sovereigns were also imported by illegal means. The police then got registered case under sections 420, 411, 414 and 120(B), Indian Peal Code, section 27 of the Arms Act, sections 4, 5 and 8 of the Foreign Exchange Regulations Act, 1947, and section 110 of the Customs Act, 1962.

(3.) THE controversy revolves round the handing over of cash amount to the Customs authorities by the trial Magistrate. The person who stakes the claim to its possession is a firm known as Messrs Prehlad Kumar Sarwan Singh through Sawarn Singh (accused). Before the trial Magistrate many others had staked their claim to the possession of the said cash amount - they being the Income Tax Officer of Amritsar, Shri Kanwarjit Singh; the Income Tax Officer of Jullundur, Shri Arjan Singh; the Income Tax Officer of Bhatinda, Shri V.P. Sud; and the Superintendent, Customs Department, Amritsar, Shri M.M. Manchanda.