STATE BANK OF INDIA versus RAJENDRA KUMAR SINGH & ORS.

STATE BANK OF INDIA versus RAJENDRA KUMAR SINGH & ORS.

The High Court was bound to give notice to the appellant before altering the trial court's order for disposal of seized property under Section 517 of the Code of Criminal Procedure. The order passed without such notice was vitiated in law. Further, as the appellant acquired the currency notes in good faith, in the course of business, and had the right to possess them under Section 517, the notes ought to be returned to the appellant.

Parties
Appellant: State Bank of India; Respondent No. 1: Rajendra Kumar Singh; Respondent No. 2: Virendra Singh; Respondent No. 3: Kishan Gopal
Jurisdiction
India
Judgment Date
25 September 1968
Procedural Posture
Criminal Appeal / Appeal by Special Leave From Order of the High Court Under Section 520 Code of Criminal Procedure
Outcome
Appeal allowed, order of the High Court set aside, direction for return of currency notes to appellant.
Legal Topics
Return of Seized Property, Principles of Natural Justice, Right to Possess Currency Notes
Criminal Law Procedure Return of Seized Property Principles of Natural Justice Right to Possess Currency Notes

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Parties

State Bank of India

Appellant

Rajendra Kumar Singh

Respondent No. 1

Virendra Singh

Respondent No. 2

Kishan Gopal

Respondent No. 3

Procedural Posture

Criminal Appeal / Appeal by Special Leave From Order of the High Court Under Section 520 Code of Criminal Procedure

Legal Issues

  1. 1 Whether the High Court was required to give notice and opportunity of hearing to the adversely affected party before altering the order concerning disposal of seized property under Section 517 of the Code of Criminal Procedure
  2. 2 Who is entitled to 'right to possess' seized currency notes under the meaning of Section 517 CrPC

Ratio Decidendi

The High Court was bound to give notice to the appellant before altering the trial court's order for disposal of seized property under Section 517 of the Code of Criminal Procedure. The order passed without such notice was vitiated in law. Further, as the appellant acquired the currency notes in good faith, in the course of business, and had the right to possess them under Section 517, the notes ought to be returned to the appellant.

Court Disposition

Appeal allowed, order of the High Court set aside, direction for return of currency notes to appellant.

Orders

  • The appeal is allowed.
  • The order of the High Court dated April 5, 1963 is set aside.