Interim release of vehicle under Odisha Excise Act is permissible despite pendency of confiscation proceedings.

The Petitioner, Chandan Naik, sought the interim release of his motorcycle (Pulsar RS 200, Regd. No. OD 06 G 8536) which was seized in connection with an offence under Section 52(a)(i) of the Odisha Excise Act, 2008

The learned J.M.F.C. (R), Cuttack, rejected the Petitioner's application on 11.12.2025, citing the initiation of confiscation proceedings under Section 71 of the Act and the jurisdictional bar under Section 72

The Petitioner contended he was the registered owner, the vehicle was hypothecated with active EMI payments, he was not arrayed as an accused, and the offence occurred without his knowledge

1. Whether the Magistrate has the jurisdiction to direct the interim release of a vehicle when confiscation proceedings under the Odisha Excise Act, 2008 have been initiated

2. Whether the statutory bar under Section 72 of the Odisha Excise Act, 2008 precludes the High Court from exercising revisional jurisdiction to ensure the preservation of seized property

The court primarily applied Section 71(3) and Section 72 of the Odisha Excise Act, 2008, which generally grant exclusive jurisdiction to the Collector/Authorized Officer over seized property and bar other court proceedings during the pendency of confiscation

Sections 497 and 503 of the BNSS, 2023 (corresponding to Sections 451 and 457 of the Cr.P.C.) regarding the custody and disposal of property

Sunderbhai Ambalal Desai v. State of Gujarat (2002), which mandates that seized vehicles should not be left to deteriorate in open spaces

Narayan Subudhi v. State of Odisha (2026) regarding interim release during excise proceedings

The Court reasoned that although Section 72 of the Act, 2008 creates a jurisdictional bar for "Courts" during confiscation proceedings, such provisions must be read in harmony with the necessity of preserving the property from physical decay

The Court observed that the Petitioner was not an accused in the PR case and that the vehicle, being a hypothecated asset for which he was still paying installments, represented a significant financial hardship

Applying the principles from Sunderbhai Ambalal Desai, the Court noted that keeping the vehicle seized and exposed to the "vagaries of nature" serves no judicial purpose

The Court followed the logic in Narayan Subudhi, determining that the vehicle could be released on an interim basis without prejudice to the final outcome of the confiscation proceedings, provided sufficient conditions were imposed to maintain the identity and ownership of the motorcycle

The Court directed the J.M.F.C. (R), Cuttack, to grant interim release of the motorcycle to the Petitioner forthwith, subject to ownership verification and conditions preventing the alteration or sale of the vehicle. The release was explicitly made subject to the final outcome of the pending confiscation proceedings under the Odisha Excise Act