Interim custody of seized gold ornaments to banks cannot be denied solely due to pendency of trial.

Following a dacoity at its Sihora Branch on August 11, 2025, where assailants stole cash and approximately 14,873 grams of gold, the applicant-bank sought interim custody of 3.090 kilograms of recovered ornaments.

The applicant filed a petition under Section 503 of the BNSS after the Judicial Magistrate First Class and the First Additional Sessions Judge rejected its application, primarily on the grounds that the articles were essential evidence for the upcoming trial.

1. Whether the lower courts were legally justified in withholding interim custody of seized valuables solely on the grounds that the property might be required as evidence during the trial.

Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

Sunderbhai Ambalal Desai v. State of Gujarat (2002): This precedent dictates that valuable articles should not languish in police custody indefinitely; instead, courts should exercise powers for interim release expeditiously by substituting the physical production of articles with detailed inventories, photographs, and videography to preserve evidentiary value.

The Court observed that the applicant-bank held lawful possession of the gold as a bailee and secured creditor.

It reasoned that the lower courts erred by failing to consider that the prosecution's interests could be protected through safeguards rather than physical retention.

By applying the Sunderbhai Ambalal Desai doctrine, the Court determined that the technical requirements of the trial—such as identification and nexus—could be satisfied via "detailed panchnama, photographs, and other necessary records".

The Court concluded that since the bank is legally obligated to return these pledged articles to customers, continued retention caused unnecessary hardship without providing any additional legal benefit to the trial process.

The Court held that the bank is entitled to interim custody subject to specific conditions: (i) preparation of a detailed inventory/panchnama; (ii) high-resolution photography and videography; (iii) a bank guarantee or security equivalent to the value of the gold; (iv) an undertaking to produce the items if directed; and (v) a stipulation that release does not establish final ownership.