State of Kerala v. A.A. Ali
Background
A Tata Hitachi hydraulic excavator belonging to a contractor engaged to widen a National Highway was taken into court custody. The contractor sought its release under Section 451 of the Code of Criminal Procedure. A Magistrate allowed release only on furnishing heavy security, including a bank guarantee covering the value of a Government/Forest Department building that had been demolished during the highway-widening work; the High Court deleted the bank-guarantee condition relating to that alleged loss, and the State of Kerala appealed to the Supreme Court against that deletion.
Decision Breakdown
The Supreme Court held that since the contractor had demolished the building only pursuant to directions from his superior officers in the course of National Highway development work, the High Court was justified in holding that a bank guarantee for the alleged loss need not be insisted upon merely to release a vehicle held under Section 451 CrPC. The Magistrate was directed to release the vehicle without that bank-guarantee condition, and the State's appeal was dismissed.
Lesson Learnt
Section 451 CrPC proceedings for interim custody/release of seized property are not the forum to extract security for unrelated alleged losses, especially where the person in possession was merely carrying out directions from a public authority in an official works project.