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Patna High Court

Rajesh KumarversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The penalty under Rule 12A is a mandatory minimum of 10% of the insured value of the vehicle and cannot be reduced below that, though the Court may fix it at the minimum and order release upon payment.

Summary

Petitioner Rajesh Kumar challenged a memo requiring payment of 11% of his vehicle's value to secure its release after 180ml of whisky was seized from the vehicle, arguing he was not involved in the offence. The State contended that under Rule 12A of the Bihar Excise and Prohibition Rules, 2021, a penalty of at least 10% of the insured value is mandatory for any seized conveyance. The Court examined the wording of Rule 12A, noting that the penalty must consider the quantity of intoxicant but cannot be less than 10% of the vehicle's insured value. It held that the statutory minimum is mandatory and cannot be reduced below 10%, though the Court may fix the penalty at that minimum. Accordingly, the Court directed the Assistant Commissioner to levy a penalty of exactly 10% of the vehicle's valuation and release the vehicle upon payment and proof of ownership. The writ application was disposed with this direction.

Issues considered

  • What is the minimum penalty prescribed under Rule 12A of the Bihar Excise and Prohibition Rules, 2021 for the release of a seized vehicle?
  • Can the Court lower the statutory penalty below the 10% minimum when the owner was not personally involved in the offence?
  • Whether the petitioner, as the owner, is liable to pay the penalty despite the vehicle being used by a friend.

Legislation cited

Subjects

  • vehicle seizure
  • excise law
  • penalty
  • Rule 12A
  • minimum penalty
  • owner liability
  • writ jurisdiction
  • confiscation
  • release of vehicle

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                 Civil Writ Jurisdiction Case No.5530 of 2026
                 ======================================================
                 Rajesh Kumar Son of Ramakant Sharma, Resident of Lari, P.S. Arwal,
                 District Arwal, Bihar-804421.

                                                                              ... ... Petitioner
                                                   Versus
           1.    The State of Bihar
           2.    The Secretary, Excise and Prohibition, Government of Bihar, Patna.
           3.    The Commissioner, Excise and Prohibition, Government of Bihar, Patna.
           4.    The Assistant Commissioner, Excise and Prohibition, Government of Bihar,
                 Patna.
           5.    The Station House Officer, Gardanibagh Police Station, Patna.

                                                           ... ... Respondents
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :     Mr. Shashi Sharma, Advocate
                 For the Respondent/s   :     Mr. Jitendra Kr. Roy-1, SC 13
                                              Mr. Hitesh Sumar, AC to SC 13
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
                         and
                         HONOURABLE JUSTICE SMT. SONI SHRIVASTAVA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD)

2   15-05-2026                   Heard learned counsel for the petitioner and learned

                   counsel for the State.

                               2. The petitioner in this case is aggrieved and

                   dissatisfied with the communication as contained in Memo No.

                   111 dated 11.03.2026 issued by the Assistant Commissioner,

                   Excise, Patna in Confiscation Case No. 160/2025-26.

                               3. By the impugned communication, the petitioner has

                   been informed, the owner of the vehicle in question, to get his
Patna High Court CWJC No.5530 of 2026(2) dt.15-05-2026
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          vehicle released on payment of 11% of the value of the vehicle

          i.e., Rs.73,150/- failing which the vehicle shall be subjected to

          acquisition and auction sale.

                      4. Learned counsel for the petitioner submits that the

          petitioner is the owner of the vehicle, but he was not present in

          the vehicle when it was intercepted and from the rear seat of the

          vehicle 180ml of 8 PM tetra packs of “Blend of Scotch and

          Indian Grain Whisky” were allegedly recovered. It is submitted

          that the vehicle was being driven by one Rajnish Kumar, who

          happened to be a friend/distant relative of the petitioner and on

          his request the petitioner had given him the vehicle for

          temporary use.

                      5. Learned counsel submits that considering the

          meager quantity of liquor, vehicle may be ordered to be released

          without payment of penalty. Her submission is that since the

          petitioner is not involved in the alleged offence and the vehicle

          was given to his friend in good faith, he may not be made liable

          for payment of penalty.

                      6. On the other hand, learned counsel for the State

          submits that unlike a commercial vehicle when the vehicle is

          given to a driver to transport commercial goods from one State

          to another or from one place to another covering long distance,
Patna High Court CWJC No.5530 of 2026(2) dt.15-05-2026
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          it is a case in which a private vehicle has been given to a friend

          or relative, who was driving the vehicle and in course of that use

          liquor has been found in the vehicle. Admittedly, the liquor was

          found in the vehicle therefore, the vehicle is liable to be seized

          and proceeding towards confiscation of the vehicle has to take

          place.

                      7. It is submitted that no fault may be found with the

          communication as contained in Memo No. 111 dated

          11.03.2026, because a bare reading of Rule 12A of the Bihar

          Excise and Prohibition Rules, 2021 (as amended up-to-date)

          would show that there cannot be a penalty less than 10% of the

          valuation of the vehicle. Learned counsel submits that although

          the petitioner relies on the Co-ordinate Bench judgments of this

          Court in the case of Deepak Kumar Gupta vs. State of Bihar

          (CWJC No. 15342 of 2024), it would appear that the said order

          has been passed saying that the same has been done in exercise

          of extraordinary writ jurisdiction. However, his submission

          would be that no mandamus may be issued against the statute. If

          the rule provides for penalty not less than 10%, this Court in

          exercise of its writ jurisdiction may not substitute the rule and

          form an opinion in violation of the statutory provision.

                      8. We agree with the submissions advanced on behalf
Patna High Court CWJC No.5530 of 2026(2) dt.15-05-2026
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          of the State. Rule 12A of the Rules of 2021 reads as under:

                                  “2[12A. Release of Vehicles, Conveyance etc. On
                                  Payment of Penalty.- (1) if any vehicles,
                                  conveyance, vessel, animal etc. has been seized by
                                  any police or excise officer under the Act, then in
                                  terms of Section 57B (1) of the Act, the Collector
                                  or an officer authorized by him upon receipt of an
                                  application in Form IV by the owner of the said
                                  conveyance or vehicle etc., may release the said
                                  conveyance or vehicle upon payment of such
                                  penalty as may be ordered by the Collector or the
                                  officer authorized by him.
                                  Provided, where it is not possible to ascertain the
                                  owner of the vehicle or the owner is not coming to
                                  claim the vehicle, the Collector or the officer
                                  authorized by him, after waiting for 15 days from
                                  the date of seizure, shall proceed to confiscate
                                  and auction the vehicle as per the provisions of
                                  the Act.
                                  3
                                   [(2) The amount of penalty shall be as decided
                                  by the Collector or the Officer authorized by him.
                                  While imposing the penalty, he shall have due
                                  regard to the quantity of intoxicant recovered,
                                  involvement of the vehicle owner and the latest
                                  insurance value of the vehicle. In no case, the
                                  penalty should be less than 10% of the insured
                                  value of the vehicle and more than Rs. 5 lakhs.
                                  The insured value is the value of the vehicle as
                                  assessed by the insurance company. Where, the
                                  insured value is not available or the Collector or




                2. Ins. By Amdt. Rules 2022, vide Notifn. No. 2458, dated 5.4.2022.
               3. Subs. By Amdt. Rules, 2023, vide Notifn. No. 3671, dated 31.05.2023
Patna High Court CWJC No.5530 of 2026(2) dt.15-05-2026
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                                  the Officer authorized by him has reason to
                                  believe that the vehicle is undervalued, he shall
                                  get the valuation done by the District Transport
                                  Officer.
                                  In any case, the Collector shall not wait beyond
                                  15 days from the date of seizure and if during this
                                  period, the accused/owner does not pay up the
                                  penalty,     he    shall   proceed     with    the
                                  confiscation/auction.]
                                  (3) Notwithstanding above, if on a report by
                                  police officer or excise officer, the Collector or
                                  the officer authorized by him is satisfied that
                                  releasing the vehicle or conveyance shall not be
                                  in the public interest, he shall proceed ahead with
                                  the confiscation of the said vehicle or conveyance
                                  and its subsequent auction/disposal.
                                  (4) Where the conveyance is such that its
                                  valuation/insurance is not possible, the Collector
                                  or the officer authorized by him shall impose
                                  such fine as he deems fit. While imposing such
                                  fine, the Collector or the officer authorized by
                                  him shall have due regard to the economic status
                                  of the individual, nature of his involvement in the
                                  crime and the quantum of intoxicant recovered.
                                  (5) Such penalty shall be, regardless of the
                                  outcome of the trial if any, before the Special
                                  Court, non-refundable.
                                  (6) The owner of the vehicle/conveyance shall,
                                  after the release of the vehicle/conveyance,
                                  produce the vehicle/conveyance as and when
                                  required by the authorities.”


                      9. It is evident on a bare reading of the

          aforementioned rule that the penalty is required to be
           Patna High Court CWJC No.5530 of 2026(2) dt.15-05-2026
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                     determined by taking into consideration various factors, one of

                     which will be the quantum of the liquor recovered from the

                     vehicle, but having said so the provision has made it clear that

                     in no case the penalty shall be less than 10% of the valuation of

                     the vehicle. The manner in which this provision is couched, it

                     has to be taken as a mandatory provision. It would, therefore,

                     not be appropriate to tinker with the provision of law.

                     Considering, however, the entire facts and circumstances, we

                     direct the Assistant Commissioner, Excise, Patna to keep the

                     penalty amount at the minimum and it should not be more than

                     10% of the valuation of the vehicle. On payment of 10% of the

                     valuation of vehicle, the vehicle in question shall be released in

                     favour of the petitioner on production of documents of

                     ownership.

                                 10. Accordingly, this writ application is disposed of

                     with the aforesaid direction.



                                              (Rajeev Ranjan Prasad, J)


                                                   (Soni Shrivastava, J)
anand/prachi/-
U


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