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Patna High Court

Bablu Kumar Mahto @ Bablu MahtoversusThe State of Bihar

Decided
Disposal
ALLOWED

Holding

The court held that the penalty must be limited to 10 % of the insured value and that the additional 3 % fine is unlawful, thereby modifying the impugned order and quashing the extra fine.

Summary

The petitioner, Bablu Mahto, was arrested after his vehicle was intercepted by police who discovered 85.125 litres of illicit foreign liquor. He was charged under Section 30(a) of the Bihar Prohibition and Excise Act, 2016 and the Senior Deputy Collector imposed a penalty of 40 % of the vehicle’s insured value plus an additional 3 % fine. The petitioner challenged the order, arguing the penalty was excessive and the extra 3 % fine was unauthorized. The High Court examined the facts, noted the absence of any indication that the petitioner was a habitual offender, and referred to earlier decisions that excessive penalties create undue hardship. It reduced the penalty to 10 % of the insured value (Rs 4,28,240) and quashed the additional 3 % fine, directing release of the vehicle upon payment. The writ petition was therefore allowed.

Issues considered

  • Whether the 40 % penalty imposed under the Bihar Prohibition and Excise Act, 2016 is excessive and violative of the statute.
  • Whether the confiscating authority has power to levy an additional 3 % fine over and above the statutory penalty.

Legislation cited

Subjects

  • vehicle seizure
  • prohibition law
  • penalty assessment
  • excessive penalty
  • additional fine
  • writ petition
  • Bihar Prohibition and Excise Act

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                             Civil Writ Jurisdiction Case No. 20701 of 2025
                 ======================================================
                 Bablu Kumar Mahto @ Bablu Mahto Son of Jageshwar Mahto, resident of
                 Village- Lodipur, Police Station- Mahnar, District Vaishali. Presently House
                 No. N. 103 Zamrudpur, Greater Kailash, S.O. South Delhi.

                                                                               ... ... Petitioner/s

                                                      Versus

           1.    The State of Bihar through Principal Secretary Registration and Excise
                 Department, Patna.
           2.    The District Magistrate, Patna
           3.    The Senior Deputy Collector cum Excise Court, Patna.
           4.    The Station House Officer, Bahadurpur Police Station, Patna.
           5.    The Investigating Officer, Bahadurpur Police Station, Patna.

                                                           ... ... Respondent/s
                 ======================================================
                 Appearance:
                 For the Petitioner/s   :         Mr. Pramod Ban Bihari Singh, Advocate
                                                  Mr. Subhash Prasad Singh, Advocate
                 For the Respondent/s   :         Mrs. Kumari Amrita, GP-3
                                                  Mr. Rajesh Kumar, AC to GP-3
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
                       and
                       HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY
                                    ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)


4   05-02-2026              The present writ petition has been filed for quashing the

                   order dated 25.11.2025 passed by the Senior Deputy Collector,

                   Patna-cum-In-charge Officer, District Development Branch,

                   Patna i.e. the respondent no. 3 in Vehicle Confiscation Case No.

                   63 of 2025-26 and consequently direct the respondents to
Patna High Court CWJC No.20701 of 2025(4) dt.05-02-2026
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          release the vehicle (Ertiga) bearing Registration No. HR55AV-

          3400, Chassis No. MA3BNC62SRM938830 and Engine No.

          K15CN9668211.

          2.      The brief facts of the case are that on 19.07.2025 at about

          10:00 p.m. when the police patrolling party was on patrolling

          duty and were conducting checking of the vehicles, one white

          colour Ertiga vehicle, which was also plying on the road started

          moving backwards upon seeing the police party, leading to the

          police force having suspected some foul play, hence the said

          Ertiga car was chased and intercepted, whereupon the driver

          was caught, who upon enquiry disclosed his name as Bablu

          Mahto (petitioner) and upon search of the said Ertiga vehicle,

          85.125 liters of illicit foreign liquor was recovered.

          3.      On the basis of the written report of the police personnel

          of Bahadurpur Police Station, Patna, Bahadurpur P.S. Case No.

          231 of 2025 dated 20.07.2025 was registered under Section

          30(a) of the Bihar Prohibition and Excise Act, 2016 (hereinafter

          referred to as the ‘Act, 2016’) against the said Bablu Mahto

          (petitioner) and owner of the Ertiga car.

          4.      The learned counsel for the petitioner has submitted that

          the respondent no. 3 while passing the impugned order dated

          25.11.2025 has imposed excessive penalty which is to the extent
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          of 40% of the insured value of the vehicle, thus the same defeats

          the provisions contained in the Act, 2016 for release of the

          vehicle in question. It is submitted that the vehicle was found

          carrying 85.125 liters of illicit foreign liquor, which is not a

          huge quantity, hence a sympathetic view be taken and the

          amount assessed as penalty be reduced.

          5.      Per contra, the learned counsel for the respondents has

          submitted that the vehicle was found carrying 85.125 liters of

          illicit foreign liquor, which is a huge quantity, therefore in order

          to discourage transportation of such huge quantity of liquor, the

          penalty to the extent of 40% is reasonable and no illegality can

          be found with the same.

          6.      We have considered the rival submissions advanced by

          the learned counsel for the parties. A bare perusal of the counter

          affidavit filed by the respondents would show that there is no

          material on record to suggest that the aforesaid vehicle in

          question was in regular use for transportation of liquor or the

          petitioner herein is a habitual offender. At this juncture, the

          learned counsel for the petitioner has stated across the bar that

          the petitioner is having a clean antecedent and save and except

          the connected case, he is not an accused in any other case.

          7.      We have also gone through the order dated 26.11.2025
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          passed by a coordinate Bench of this Court in CWJC No. 14928

          of 2025 (Rakesh Kumar Singh vs. The State of Bihar &

          others) and the one dated 01.12.2025 passed in the case of Alok

          Pandey vs. The State of Bihar & others (CWJC No. 15636 of

          2025). In the said cases, the learned coordinate Benches of this

          Court have held that imposition of excessive penalty is an

          onerous condition and it amounts to virtually creating a situation

          where huge hardship may be caused to an owner of the vehicle

          in getting release of the vehicle.

          8.      Having considered the facts and circumstances of the case

          as discussed hereinabove, we are of the considered view that

          10% of the insured value of the vehicle i.e. Rs. 4,28,240/- would

          be a reasonable amount by way of penalty. The learned counsel

          for the petitioner submits that the said amount would be

          deposited within a period of three weeks from today.

          Accordingly, we direct that if the afore-said amount is deposited

          within a period of three weeks from today, the vehicle in

          question shall be released by the concerned authority in favor of

          the petitioner forthwith, after being satisfied with the documents

          of the ownership of the vehicle in question. Consequently, the

          order dated 25.11.2025 passed by the respondent no. 3 stands

          modified to the aforesaid extent.
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          9.      Now, coming to the issue of levy of 3% fine to the tune of

          Rs. 12,847/-, to be deposited with the account of Bihar State

          Beverages Corporation Limited (in short ‘BSBCL’), we find that

          the confiscating authority under the provisions contained in the

          Act, 2016, as amended up to date has no power to impose an

          additional 3% penalty over and above the penalty amount. We

          further find that the confiscating authority, on its own cannot

          impose penalty over & above what has been sanctioned by law.

          In this connection, reference be had to a judgment dated

          11.12.2025 passed by a coordinate Bench of this Court in the

          case of Shantanu Kumar vs. The State of Bihar & Ors. (CWJC

          No. 18561 of 2025).

          10.     In view of the law laid down in the case of Shantanu

          Kumar (supra) as also considering the fact that the Act, 2016

          does not mandate imposition of additional penalty over and

          above what has been sanctioned by law, we find that imposition

          of 3% additional penalty is wholly unjust and improper as also

          is an act of undue enrichment caused to a government company,

          which is not permissible under the law. In such view of the

          matter, the additional penalty of 3% to the tune of Rs. 12,847/-

          imposed vide order dated 25.11.2025 passed by the respondent

          no. 3 is quashed.
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                   11.     The writ petition stands allowed to the aforesaid extent.


                                          (Mohit Kumar Shah, J)


                                          (Alok Kumar Pandey, J)
S.Sb/-

U


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