Interim release of a seized vehicle cannot be conditioned on furnishing a bank guarantee.

The petitioner, owner of a tipper lorry seized by the Range Forest Officer, applied under Section 457 of the Code of Criminal Procedure for its release.

The Magistrate allowed release subject to conditions, including an indemnity bond and surety, a ₹25 lakh bank guarantee, and a prohibition on alienating or transferring the vehicle.

The petitioner challenged conditions 2 and 3.

The seizure-related matter had been pending since 2021, and the vehicle remained in the respondent’s custody.

1. Whether the Magistrate’s requirement that the petitioner furnish a ₹25 lakh bank guarantee as a condition for release of the seized vehicle should be quashed.

2. Whether the restriction on alienating or transferring the vehicle should be quashed.

Section 457 of the Code of Criminal Procedure empowers the Magistrate to make orders regarding the custody and disposal of property seized by the police and reported to the court.

The High Court considered its jurisdiction under Articles 226 and 227 of the Constitution, read with Section 482 of the Code.

It relied on a coordinate Bench decision in W.P. No. 200882 of 2019, which, referring to Vivek and another v. State of Karnataka, 2018 (2) KCCR 1239, set aside a bank-guarantee condition imposed for release of a seized vehicle.

The judgment does not formulate a broader test governing when a bank guarantee or non-alienation condition may be imposed.

The Court noted that the vehicle had remained in custody for five years and that continued detention was beneficial neither to the petitioner nor to the prosecution.

It relied on the coordinate Bench’s decision concerning a bank-guarantee condition for release of a seized vehicle and concluded that the petition should succeed in respect of conditions 2 and 3.

It preserved condition 1, requiring an indemnity bond and surety, as the basis on which the vehicle could be released.

The Court quashed condition 2, requiring a ₹25 lakh bank guarantee, and condition 3, prohibiting alienation or transfer of the vehicle.

It directed that the vehicle be released to the petitioner forthwith upon compliance with condition 1.