Premananda Sahoo vs. State Of Odisha

Facts

The petitioner, Premananda Sahoo, filed a petition under Section 482 Cr.P.C. challenging an order dated 27th October, 2022, passed by the learned S.D.J.M., Puri. The order allowed the release of seized scrap copper wires in favour of the petitioner, but imposed a condition to deposit cash security of Rs. 21,50,580/-. The petitioner, the consigner, was alleged to have prepared forged documents in the name of M/s S.S. Metal Overseas to evade GST payment on the seized copper waste and scrap. The State argued that the petitioner had not paid GST on the seized item and had created forged documents, justifying the court's imposition of the cash security condition.

Held

The Court held that while the learned S.D.J.M. was inclined to allow the release of the seized scrap copper wires in favour of the petitioner, the condition to deposit a cash security of Rs. 21,50,580/- was unreasonable and onerous. The Court reasoned that such an onerous condition amounts to a virtual denial of relief, which should be avoided. Therefore, the Court decided that the condition should be replaced by property security, which would serve the purpose and meet the ends of justice. The impugned order was set aside to the extent of the cash security condition, and the learned S.D.J.M. was directed to accept property security for the like amount and ensure the release of the seized article, subject to any other just and proper conditions.

Key Issues

1. Whether the condition imposed by the learned S.D.J.M., Puri, for the release of seized scrap copper wires, requiring the deposit of cash security of Rs. 21,50,580/-, is unreasonable and bad in law, turning on Section 457 Cr.P.C. and general principles of law regarding onerous conditions for release of seized goods. Petitioner's contention: The condition to deposit a heavy cash security is unreasonable and onerous, amounting to a virtual denial of relief, and should be substituted with property security. Revenue's contention: The petitioner is alleged to have not paid GST and created forged documents, and the learned court below was justified in imposing the cash security condition to the extent of the unpaid GST.