Gujarat High CourtCivil Procedure and EvidenceCriminal Law

Gujarat HC Releases Kotak Bank’s Seized Hyundai In Liquor Case, Citing SC: Prohibition Act Is No Absolute Bar To Interim Custody

KOTAK MAHINDRA BANK LTD. THRO HARSHIL PANKAJKUMAR THAKKARv.STATE OF GUJARAT

Gujarat HC Releases Kotak Bank’s Seized Hyundai In Liquor Case, Citing SC: Prohibition Act Is No Absolute Bar To Interim Custody. KOTAK MAHINDRA BANK LTD. THRO HARSHIL PANKAJKUMAR THAKKAR vs STATE OF GUJARAT. Gujarat High Court. LawLens
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In brief

The question

Whether the High Court could order interim release of the seized vehicle despite the confiscation provisions of the Gujarat Prohibition Act.

The court held

The petition was allowed, and the trial court or concerned authority was directed to release the Hyundai Verna to the petitioner upon furnishing a solvent surety equal to the vehicle’s price as stated in the FIR, filing an undertaking not to transfer it until final disposal of the trial, and producing it when directed; the order further provided that the vehicle would stand confiscated in the event of a subsequent offence.

It also directed

Before release, police were directed to photograph the vehicle and prepare a panchanama at the petitioner’s cost, with both included in the charge-sheet papers.

A copy of the order was to be sent to the relevant RTO to record the restraint on transfer, subject to any later order of the trial court.

Rule was made absolute.

01Facts

Police seized a Hyundai Verna, registration No. GJ-31-BA-5578, after allegedly finding its driver carrying liquor without a pass or permit.

p. 1

An FIR was registered at Dahod Rural Police Station under the Gujarat Prohibition Act.

p. 1

Kotak Mahindra Bank, the vehicle’s registered owner, petitioned under Articles 21 and 226 of the Constitution and Section 497 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking the vehicle’s release.

pp. 1–2, 4

The State opposed release by reference to the Act’s confiscation provisions but accepted that the High Court could exercise its Article 226 jurisdiction to order release.

p. 2

02Issues

i.Whether the High Court could order interim release of the seized vehicle despite the confiscation provisions of the Gujarat Prohibition Act.

p. 2, 4

ii.Whether the vehicle should be released to the petitioner on terms protecting its availability for trial and any subsequent proceedings.

pp. 3–4

03Law Applied

Articles 226 and 227 of the Constitution empower the High Court to order release of seized property in an appropriate case.

p. 3

Section 497 of the Bharatiya Nagarik Suraksha Sanhita, 2023, corresponding to Section 451 of the Code of Criminal Procedure, 1973, provides for orders concerning the custody and disposal of property pending trial.

p. 3

In Sunderbhai Ambalal Desai v. State of Gujarat, the Supreme Court held that seized vehicles should not be left to deteriorate at police stations and may be released on appropriate bonds, guarantees, and security.

p. 3

The Court also relied on Musa Khan Jat v. State of Gujarat, in which a coordinate bench ordered vehicle release under Articles 226 and 227, and M/s ABC Express v. State of Gujarat, which held that Section 98(2) of the Gujarat Prohibition Act does not impose an absolute bar on interim release of a seized vehicle.

pp. 3–4

Provisions in the judgment · 3 · Linked ones open on LawLens

Bharatiya Nagarik Suraksha Sanhita, 2023 Section 497

Gujarat Prohibition Act, 1949. Section 98

Code of Criminal Procedure, 1973 Section 451

04Reasoning

The petitioner was the registered owner of the seized vehicle, and the Court considered the risk of vehicles deteriorating while kept at police stations, as addressed in Sunderbhai.

pp. 3–4

It further relied on the Supreme Court’s conclusion in M/s ABC Express that Section 98(2) does not absolutely preclude interim release, and noted the coordinate-bench decision in Musa Khan Jat.

pp. 3–4

The Court therefore ordered release subject to conditions intended to secure the vehicle’s value, prevent its transfer, ensure its production when required, and address any subsequent offence.

p. 4

05Holding

The petition was allowed, and the trial court or concerned authority was directed to release the Hyundai Verna to the petitioner upon furnishing a solvent surety equal to the vehicle’s price as stated in the FIR, filing an undertaking not to transfer it until final disposal of the trial, and producing it when directed; the order further provided that the vehicle would stand confiscated in the event of a subsequent offence.

p. 4

Before release, police were directed to photograph the vehicle and prepare a panchanama at the petitioner’s cost, with both included in the charge-sheet papers.

p. 5

A copy of the order was to be sent to the relevant RTO to record the restraint on transfer, subject to any later order of the trial court.

p. 5

Rule was made absolute.

p. 5
Gujarat High Court

Original Court PDF

KOTAK MAHINDRA BANK LTD. THRO HARSHIL PANKAJKUMAR THAKKARvsSTATE OF GUJARAT

Gujarat High Court · November 05, 2026

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