Holding

Section 72(2) of the United Provinces Excise Act, 1910 confers exclusive, prosecution‑independent jurisdiction on the Collector to order confiscation of seized vehicles, and this statutory power prevails over any inconsistent provisions of the Code of Criminal Procedure.

Summary

An FIR was lodged under the United Provinces Excise Act, 1910 and the IPC for the seizure of illicit liquor and a firearm, leading to the confiscation of a truck owned by the appellant. The District Magistrate, who also acted as the Collector, issued a show‑cause notice and subsequently ordered the vehicle's confiscation and auction, offering the owner the option to pay a fine equal to its market value. The appellant challenged the Collector's jurisdiction, arguing that only the magistrate could order release after trial, and that confiscation was a punitive measure requiring court jurisdiction. The Supreme Court held that Section 72(2) of the Excise Act vests exclusive power of confiscation in the Collector, independent of any criminal prosecution, and that the Act's provisions override conflicting provisions of the Code of Criminal Procedure. Consequently, the High Court's order upholding the Collector's jurisdiction was affirmed, and the matter was remitted for judicial review of the confiscation order. The appeal was disposed of.

Issues considered

The extent of the Collector's jurisdiction to order confiscation of a vehicle seized under the United Provinces Excise Act, 1910.
Whether the power to confiscate is dependent on the initiation or conclusion of criminal prosecution.
Whether provisions of the Excise Act override conflicting provisions of the Code of Criminal Procedure, 1973.

Legislation cited

Code of Criminal Procedure, 1973s. 4, s. 5
United Provinces Excise Act, 1910s. 60, s. 72

Subjects

confiscationcollector jurisdictionexcise lawvehicle seizurespecial legislation vs CrPCnon obstante clauseindependent confiscation proceeding

Judgment

754 [2019]
SUPREME COURT 10 S.C.R. 754
REPORTS [2019] 10 S.C.R.

A MUSTAFA
v.
STATE OF UTTAR PRADESH & ORS.
(Civil Appeal No. 6438 of 2019)
B AUGUST 20, 2019
[L. NAGESWARA RAO AND HEMANT GUPTA, JJ.]
United Provinces Excise Act, 1910 – ss. 60 and 72 –
Jurisdiction of Collector to order confiscation of vehicle – A FIR
was registered for offences u/ss.60 & 72 of the Act and ss.420,
C
467, 468 and 471 of IPC in respect of seizure of 154 cartons of
illicit liquor, one 0.315 bore country made pistol with two 0.315
bore live cartridges, by a team of Excise Department and the police
officials – A notice was served upon the appellant by the District
Magistrate, who was also the Collector of the district to show cause
D as to why the seized truck be not confiscated – Pursuant thereto,
the District Magistrate passed an order of confiscation and auction
of vehicle – Aggrieved, appellant filed appeal before the District
Judge, which was dismissed – Challenge to the said order before
the High Court was also unsuccessful – On appeal before the Supreme
Court, the appellant contended that since FIR was registered in
E
respect of transportation of illicit liquor, therefore, the Magistrate
who is competent to conduct trial alone was competent to pass an
order of release of vehicle – It was further contended that it is on
completion of the trial; the Magistarte would pass an order of
confiscation of the vehicle – Thus, Collector had no jurisdiction to
F pass an order of confiscation of the vehicle – Held: The confiscation
of the vehicle found in illicit transportation of the liquor is an offence
which can be investigated by an Excise officer as well as by a police
officer – But, sub-section (2) of s.72 of the Act confers power upon
the collector to order confiscation of such thing or animal ‘whether
or not a prosecution for such offence has been instituted’ –
G
Therefore, the power of the Collector to confiscate the seized thing
or animal is independent of prosecution – Also, the proviso to sub-
section (2) of Section 72 of the Act gives an option to the owner to
pay such fine as the Collector thinks adequate not exceeding its
market value in lieu of its confiscation – It, thus, transpires that it is
H
754
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 755

the Collector who has been conferred exclusive jurisdiction to order A
confiscation of a thing or animal – Further, the criminal court before
whom the prosecution is lodged, will not have jurisdiction to release
anything or animal whether interim or final as the Act in question
has provisions contrary to the provisions contained in the Code of
Criminal Procedure – In view thereof, there is no error in the order
B
passed by the High Court regarding the jurisdiction of the Collector
to order confiscation – However, matter remitted back to the High
Court to exercise the power of judicial review over the order of
confiscation passed by the Collector and affirmed by the District
Judge.
United Provinces Excise Act, 1910 – Code of Criminal C
Procedure, 1973 – Procedure of confiscation of vehicle – Held:
The offences under the Act in terms of sub-section (2) of s. 4 of the
Code are to be dealt with according to the provisions of the Code
but subject to the provisions of the Act, 1910 regulating the manner
or place of investigating, inquiring into, trying or dealing with such D
offences – Since the procedure of confiscation of the vehicle is
prescribed under the Act, 1910 it is the provision of the Act which
will be applicable and not Chapter XXXIV of the Code – S. 5 of the
Code saves special or local laws or any special jurisdiction or power
conferred, or any special form of procedure prescribed, by any
other law for the time being in force. E

Disposing of the appeal, the Court
HELD: 1. The proviso to sub-section (2) of Section 72 of
the United Provinces Excise Act, 1910 gives an option to the
owner to pay such fine as the Collector thinks adequate not F
exceeding its market value in lieu of its confiscation. It, thus,
transpires that it is the Collector who has been conferred exclusive
jurisdiction to order confiscation of a thing or animal. The
Collector has been further empowered to impose fine not
exceeding the market value of the thing on the date of seizure.
Thus, the power of confiscation of a vehicle or a thing is absolutely G
vested with the Collector except in certain circumstances, instead
of confiscation, the fine, not exceeding the market value, can
also be imposed but by the Collector alone. [Para 16] [768-D-E]

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756 SUPREME COURT REPORTS [2019] 10 S.C.R.

A 2. Sub-section (3) of Section 72 of the Act is exception to
sub-section (2) wherein, on receiving report of seizure or on
inspection of the seized things, including any animal, cart, vessel
or other conveyance, which are subject to speedy wear and tear
or natural decay or it is expedient in public interest to do so, the
Collector may order such things or animal, except an intoxicant,
B
to be sold by auction or otherwise. Therefore, in case any seized
thing is subject to speedy wear and tear or natural decay, the
Collector is empowered to sell the same by public auction. The
power to sell the thing or animal pending confiscation proceedings
is also contemplated if it is expedient in public interest to do so.
C Such provision empowers the Collector to order the sale of the
vehicle or animal if he is satisfied that it is expedient in public
interest even before an order of confiscation is passed by him.
[Para 17] [768-F-G]
3. In terms of Section 4 of the Code of Criminal Procedure,
D 1973 trial of offences under IPC are to be investigated, inquired
into, tried, and otherwise dealt with according to the provisions
contained in the Code. It further provides that all offences under
any other law shall be investigated, inquired into, tried, and
otherwise dealt with according to the same provisions, but subject
to any enactment for the time being in force regulating the manner
E or place of investigating, inquiring into, trying or otherwise
dealing with such offences. The offences under the Act in terms
of sub-section (2) of Section 4 of the Code are to be dealt with
according to the provisions of the Code but subject to the
provisions of the Act regulating the manner or place of
F investigating, inquiring into, trying or dealing with such offences.
Since the procedure of confiscation of the vehicle is prescribed
under the Act, it is the provision of the Act which will be applicable
and not Chapter XXXIV of the Code. Section 5 of the Code saves
special or local laws or any special jurisdiction or power conferred,
or any special form of procedure prescribed, by any other law for
G the time being in force. [Para 21] [769-G-H; 770-A-B]
4. The confiscation of a vehicle found in illicit transportation
of the liquor is an offence which can be investigated by an Excise
Officer as well as by a Police Officer. But the exclusive power of

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MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 757

confiscation is vested with the Collector in terms of sub-section A
(2) of Section 72 of the Act. The sale proceeds of seized things
or Animal which are subject to speedy wear and tear or natural
decay, if sold, are required to be paid to the person found entitled
thereto in terms of sub-sections (4) and (8) of Section 72 of the
Act. [Para 26] [771-G-H; 772-A]
B
5. Sub-section (9) of Section 72 of the Act clarifies that no
order of confiscation made by the Collector shall prevent the
infliction of any punishment to which the person affected thereby
may be liable under this Act. Thus, the punishment consequent
to the prosecution is distinct from the order of confiscation passed
by the Collector. [Para 27] [772-B] C

6. After examining the provisions of the Act, this Court
holds that the Collector has exclusive jurisdiction to confiscate
the vehicles and in case the seized things are subject to speedy
wear and tear or natural decay, he may order to sell the same in
the manner prescribed under sub-section (3) of Section 72 of the D
Act. Sub-section (4) deals with distribution of sale proceeds when
the seized thing is sold which is subject to wear and tear and
natural decay or when it is expedient in public interest to do so.
Sub-section (8) of Section 72 of the Act deals with a situation
where a prosecution of an offence is instituted in relation to which E
confiscation was ordered, the thing or animal shall be disposed
of subject to the provisions of sub-section (4) of Section 72 of the
Act in accordance with the order of the Court. The order of the
Court in sub-section (8) of Section 72 of the Act is after conclusion
of the prosecution which is different from the seized things which
are subject to speedy wear and tear or natural decay as F
contemplated by sub-section (3) of Section 72 of the Act.
[Para 30] [772-H; 773-A-C]
Yogendra Kumar Jaiswal & Ors. v. State of Bihar &
Ors. (2016) 3 SCC 183 : [2015] 14 SCR 1037 ; State
(NCT of Delhi) v. Narender (2014) 13 SCC 100 : G
[2014] 1 SCR 109 ; State of Karnataka v. K. A.
Kunchindammed (2002) 9 SCC 90 : [2002] 3 SCR 162
– relied on.

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758 SUPREME COURT REPORTS [2019] 10 S.C.R.

A State of Madhya Pradesh & Ors. v. Madhukar Rao
(2008) 14 SCC 624 : [2008] 1 SCR 413 – held
inapplicable.
State of Madhya Pradesh v. Uday Singh AIR 2019 SC
1597 ; State of Madhya Pradesh and Others v. Kallo
B Bai (2017) 14 SCC 502 ; Divisional Forest Officer and
Another v. G. V. Sudhakar Rao and Others (1985) 4
SCC 573 : [1985] 3 Suppl. SCR 680 – referred to.
Case Law Reference
[2014] 1 SCR 109 relied on Para 8
C [2008] 1 SCR 413 held inapplicable Para 9
[2015] 14 SCR 1037 relied on Para 10
AIR 2019 SC 1597 referred to Para 10
(2017) 14 SCC 502 referred to Para 15
D [1985] 3 Suppl. SCR 680 referred to Para 15
[2002] 3 SCR 162 relied on Para 24
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 6438
of 2019.
From the Judgment and Order dated 30.10.2017 of the High
E Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 6728 of
2017.
Ms. Preetika Dwivedi, Pranav Krishna, Advs. for the Appellant.
Tanmaya Agarwal, Shwetank Sailakwal, Yashashvi Virendra,
Wrick Chatterjee, Nipun Goel, Advs. for the Respondents.
F
The Judgment of the Court was delivered by
HEMANT GUPTA, J. 1. Leave granted.
2. The owner of seized truck is in appeal aggrieved against an
order passed by the High Court of Judicature at Allahabad on October
G 30, 2017, whereby the order passed by the Collector on 12.11.2016 and
by the District Judge on 3.8.2017 confiscating the Vehicle for violation
of Sections 60 and 72 of the United Provinces Excise Act, 19101,
remained unsuccessful.
1
for short, ‘Act’
H
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 759
[HEMANT GUPTA, J.]

3. An FIR was lodged on November 17, 2015 for the offences A
under Sections 60 and 72 of the Act and Sections 420, 467, 468 and 471
of the Indian Penal Code, 18602 in respect of seizure of 154 cartons of
illicit liquor, one .315 bore country made pistol with two .315 bore live
cartridges, by a team of Excise Department and the Police Officials.
The investigation was taken up by Mr. Satyaveer Singh, Sub-Inspector.
B
4. On December 17, 2015, a notice was served upon the appellant
by the District Magistrate, who is also the Collector of the District to
show cause as to why the seized truck be not confiscated. The show
cause notice in respect of the Santro Car meant for Nisar Ahmed son of
Nazir was issued as to why the car be not confiscated.
C
5. On an application filed by Nisar Ahmed, the Chief Judicial
Magistrate, Muzaffarnagar on March 15, 2016 passed an order of release
of Santro Car.
6. The appellant filed objections before the District Magistrate on
September 23, 2016 in response to the show cause notice served on him D
wherein the appellant sought release of the Vehicle as it is sole means of
his livelihood and that he will suffer financial loss. In pursuance of such
show cause notice, the District Magistrate passed an order of confiscation
and auction of both vehicles, owned by Nisar Ahmed and the Appellant,
and the sale proceeds be deposited in Government treasury. However,
the appellant was given an option in terms of Section 72 of the Act to E
pay Rs.4,50,000/- as market value of the truck. Nisar was given an
option to pay Rs.1,20,000/- to seek release of the car.
7. The appellant filed an appeal before the learned District Judge,
a judicial authority appointed by the State Government, which was
dismissed on August 3, 2017. Further, challenge to the said order remained F
unsuccessful before the High Court vide the order impugned in the present
appeal.
8. The High Court held that in terms of Section 5 of the Criminal
Procedure Code, 19733, the Act is special and local Act to deal with the
properties seized under the Act, therefore, the provisions contained in G
the Code with regard to disposal of property can be used only to the
extent they are not inconsistent with Section 72 of the Act. The High

2
for short, ‘IPC’
3
for short, ‘Code’
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760 SUPREME COURT REPORTS [2019] 10 S.C.R.

A Court relied upon an order passed by this Court in State (NCT of Delhi)
v. Narender4.
9. Ms. Preetika Dwivedi, learned counsel for the appellant has
vehemently argued that since FIR has been registered in respect of
transportation of illicit liquor, therefore, the Magistrate who is competent
B to conduct trial alone is competent to pass an order of release of vehicle.
It is on completion of the trial; the Magistrate will pass an order of
confiscation of the vehicle. Thus, it is argued that the Collector has no
jurisdiction to pass an order of confiscation of the vehicle. Reliance is
placed upon judgment in State of Madhya Pradesh & Ors. v. Madhukar
Rao5. It is also argued that judgment in Narender is not applicable to
C the facts of the present case, as in the aforesaid case, the jurisdiction of
all courts was specifically excluded but that is not the situation in the
present case.
10. On the other hand, Mr. Tanmaya Agarwal, learned counsel
for the respondents argued that confiscation of a vehicle is an independent
D proceeding, independent of prosecution of the offences under the IPC.
The confiscation of the vehicle engaged in transportation of illicit liquor
exclusively falls within the jurisdiction of the Collector in terms of the
various provisions of the Act. Learned counsel relied upon judgment in
Yogendra Kumar Jaiswal & Ors. v. State of Bihar & Ors.6 as also in
E The State of Madhya Pradesh v. Uday Singh7.
11. Before we consider respective arguments of the learned counsel
for the parties, some of the provisions from the Act would be necessary
to reproduce to appreciate the arguments. Chapter IX of the Act confers
power on the authorised officers of the Excise Department and the
F competent Police Officers to investigate into the offences punishable
under the Act. Section 50 of the Act confers power of arrest, seizure
and detention on the specified Excise and Police Officers whereas
Chapter X deals with offences and penalties which can be imposed for
the violation of the provisions of the Act. Section 72 of the Act deals
with the things which are liable for confiscation. The relevant provisions
G read as under: -
“49. Powers of certain officers to investigate into offences
4
(2014) 13 SCC 100
5
(2008) 14 SCC 624
6
(2016) 3 SCC 183
7
H AIR 2019 SC 1597
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 761
[HEMANT GUPTA, J.]

punishable under this Act. - (1) A police officer not below the A
rank of Sub-Inspector and an officer of the Excise Department
not below such rank as the State Government may prescribe,
may investigate into any offence punishable under this Act
committed within the limits of the area in which such officer
exercises jurisdiction.
B
(2) Any such officer may exercise the same powers in respect of
such investigation as an officer in charge of a police station may
exercise in a cognizable case under the provisions of Chapter XII
of the Code of Criminal Procedure, 1973, and if specially
empowered in that behalf by the State Government, such officer
may, without reference to a Magistrate, and for reasons to be C
recorded by him in writing, stop further proceedings against any
person concerned or supposed to be concerned in any offence
punishable under this Act into which he has investigated.
50. Power of arrest, seizure and detention. - Any officer of
the excise, police, salt, opium or land revenue department not below D
such rank and subject to such restrictions as the State Government
may prescribe, and any other person duly empowered in this behalf,
may arrest without warrant any person found committing an
offence punishable under Section 60, Section 62, Section 63 or
Section 65; and may seize and detain any intoxicant or other article E
which he has reason to believe to be liable to confiscation under
this Act or other law for the time being in force relating to excise
revenue; and may detain and search any person upon whom, and
any vessel, vehicle, animal, package, receptacle or covering in or
upon which he may have reasonable cause to suspect any such
article to be. F

xx xx xx
70. Cognizance of offence. - (1) No Magistrate shall take
cognizance-
(a) of an offence punishable under Section 60, Section 63, Section G
64-A, Section 65 except on his own knowledge or suspicion
or on the complaint or report of an Excise Officer; or
(b) of an offence punishable under Section 64, Section 66, Section
67 or Section 68 except on the complaint or report to the
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762 SUPREME COURT REPORTS [2019] 10 S.C.R.

A Collector or an Excise Officer authorised by him by a general
or special order in that behalf.
(2) Except with the special sanction of the State Government no
magistrate shall take cognizance of any offence punishable under
this Act, unless the prosecution is instituted within a year after the
B date on which the offence is alleged to have been committed.
xx xx xx
72. What things are liable to confiscation. - (1) Whenever
an offence punishable under this Act has been committed-

C (a) every intoxicant in respect of which such offence has been
committed;
(b) every still, utensil, implement or apparatus and all materials
by means of which such offence has been committed;
(c) every intoxicant lawfully imported, transported, manufactured,
D held in possession or sold along with or in addition to any
intoxicant liable to confiscation under clause (a);
(d) every receptacle, package and covering in which any
intoxicant as aforesaid or any materials, still, utensil, implement
or apparatus is or are found, together with the other contents
E (if any) of such receptacle or package;
(e) every animal, cart, vessel or other conveyance used in carrying
such receptacle or package shall be liable to confiscation.
(2) Where anything or animal is seized under any provision of this
Act and the Collector is satisfied for reasons to be recorded that
F an offence has been committed due to which such thing or animal
has become liable to confiscation under sub-section (1), he may
order confiscation of such thing or animal “whether or not a
prosecution for such offence has been instituted”:
Provided that in the case of anything (except an intoxicant) or
G animal referred to in sub-section (1), the owner thereof shall be
given an option to pay in lieu of its confiscation such fine as the
Collector thinks adequate not exceeding its market value on the
date of its seizure.
(3) Where the Collector on receiving report of seizure or on
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MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 763
[HEMANT GUPTA, J.]

inspection of the seized things, including any animal, cart, vessel A
or other conveyance, is of the opinion that “any such things or
animal is subject to speedy wear and tear or natural decay or it is
otherwise expedient in the public interest so to do”, he may order
such things (except an intoxicant) or animal to be sold at the market
price by auction or otherwise.
B
(4) Where any such things or animals is sold as aforesaid, and-
(a) no order of confiscation is ultimately passed or maintained
by the Collector under sub-section (2) or on review under
sub-section (6); or
(b) an order passed on appeal under sub-section (7) so requires; C
or
(c) in the case of a prosecution being instituted for the offence
in respect of which the thing or the animal is seized, “the
order of the court so requires”;
D
the sale proceeds after deducting the expenses of the sale
shall be paid to the person found entitled thereto.
(5) (a) No order of confiscation under this section shall be made
unless the owner thereof or the person from whom it is seized is
given-
E
(i) a notice in writing informing him of the grounds on which such
confiscation is proposed;
(ii) an opportunity of making a representation in writing within
such reasonable time as may be specified in the notice; and
(iii) a reasonable opportunity of being heard in the matter. F

(b) Without prejudice to the provisions of clause (a), no order
confiscating any animal, cart, vessel, or other conveyance shall
be made if the owner thereof proves to the satisfaction of the
Collector that it was used in carrying the contraband goods without
the knowledge or connivance of the owner, his agent, if any, and G
the person in charge of the animal, cart, vessel or other conveyance
and that each of them had taken all reasonable and necessary
precautions against such use.
(c) Where on an application in that behalf being made to the
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764 SUPREME COURT REPORTS [2019] 10 S.C.R.

A Collector within one month from any order of confiscation made
under sub-section (2), or as the case may be, after issuing notice
on his own motion within one month from the order under the
sub-section refusing confiscation to the owner of the thing or animal
seized or to the person from whose possession it was seized, to
show cause why the order should not be reviewed, and after giving
B
him a reasonable opportunity of being heard, the Collector is
satisfied that the order suffers from a mistake apparent on the
face of the record including any mistake of law, he may pass such
order on review as he thinks fit.
(6) Where on an application in that behalf being made to Collector
C within one month from any order of confiscation made under sub-
section (2), or as the case may be, after issuing notice on his own
motion within one month from the order under the sub-section
refusing confiscation to the owner of the thing or animal seized or
to the person from whose possession it was seized to show cause
D why the order should not be reviewed, and after giving him a
reasonable opportunity of being heard, the Collector is satisfied
that the order suffers from the mistake apparent on the face of
the record including any mistake of law, he may pass such order
on review as he thinks fit.
E (7) Any person aggrieved by an order of the confiscation under
subsection (2) or sub-section (6) may, within one month from the
date of the communication to him of such order, appeal to such
judicial authority as the State Government may appoint in this
behalf and the judicial authority shall, after giving an opportunity
to the appellant to be heard, pass such order as it may think fit,
F confirming, modifying or annulling the order appealed against.
(8) Where a prosecution is instituted for the offence in relation to
which such confiscation was ordered the thing or animal “shall
subject to the provisions of sub-section (4) be disposed of in
accordance with the order of the Court”.
G
(9) No order of confiscation made by the Collector under this
section shall prevent the infliction of any punishment to which the
person affected thereby may be liable under this Act.”
(emphasis supplied)
H
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 765
[HEMANT GUPTA, J.]

12. The argument of learned counsel for the appellant is based A
upon the expression “order of the court so requires” appearing in Section
72(4)(c) of the Act. Reliance is also placed on the language used in sub-
section (8) of Section 72 of the Act contemplating that where a
prosecution is instituted for an offence in relation to which such
confiscation was ordered, the thing or animal shall be disposed of in
B
accordance with the order of the court subject to the provisions of sub-
section (4). However, we do not find any merit in the arguments raised.
13. Under the Act, an Officer of the Excise Department not below
the rank as the State Government may prescribe has been granted the
power to investigate; to arrest and detain any intoxicant or other article
which he has reason to believe to be liable to confiscation under the Act. C
Therefore, the power of an Excise Officer is in addition to power
conferred on the Police Officer to investigate, to seize articles and vehicles
involved in the commission of crime. In terms of Section 70 of the Act,
no Magistrate can take cognizance except on his own knowledge or
suspicion or on the complaint or report of the Excise Officer. The D
cognizance can also be taken on the complaint or report to the Collector
or an Excise Officer authorised by him by general or special order. Sub-
section (2) of Section 70 of the Act categorically puts an embargo that
the Magistrate cannot take cognizance without special sanction of the
State Government and unless the prosecution is instituted within a year.
E
14. Section 72(1) of the Act confers power of confiscation of
animal, cart, vessel or other conveyance used by means of which an
offence has been committed. Sub-section (2) of Section 72 of the Act
confers power upon the Collector to order confiscation of such thing or
animal “whether or not a prosecution for such offence has been
instituted”. Therefore, the power of the Collector to confiscate the seized F
thing or animal is independent of prosecution. This Court in Yogendra
Kumar Jaiswal was dealing with the confiscation of property under the
Orissa Special Courts Act, 2006 and the Bihar Special Courts Act, 2009.
It was held that such confiscation is independent of result of prosecution
under the Prevention of Corruption Act, 1988. The Court held as under: G
“146. In the case at hand, the entire proceeding is meant to
arrive at the conclusion whether on the basis of the application
preferred by the Public Prosecutor and the material brought on
record, the whole or any other money or some of the property in
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766 SUPREME COURT REPORTS [2019] 10 S.C.R.

A question has been acquired illegally and further any money or
property or both have been acquired by the means of the offence.
After arriving at the said conclusion, the order of confiscation is
passed. The order of confiscation is subject to appeal under Section
17 of the Orissa Act. That apart, it is provided under Section 19
where an order of confiscation made under Section 15 is modified
B
or annulled by the High Court in appeal or where the person
affected is acquitted by the Special Court, the money or property
or both shall be returned to the person affected. Thus, it is basically
a confiscation which is interim in nature. Therefore, it is not a
punishment as envisaged in law and hence, it is difficult to accept
C the submission that it is a pre-trial punishment and, accordingly,
we repel the said submission.
xx xx xx
149. We have already held that confiscation is not a punishment
and hence, Article 20(1) is not violated. The learned counsel for
D the State would lay stress on the decision in State of
A.P. v. Gandhi [State of A.P. v. Gandhi, (2013) 5 SCC 111: (2013)
2 SCC (Cri) 884]. In that case, the issue that arose for
consideration was: when the disciplinary proceeding was initiated
one type of punishment was imposable and when the punishment
E was imposed due to amendment of rule, a different punishment,
which was a greater one, was imposed. The High Court opined
that the punishment imposed under the amended rule amounted
to imposition of two major penalties which was not there in the
old rule. Dealing with the issue the Court referred to the rule that
dealt with major penalties and the rule-making power. Reference
F was made to the decision in Pyare Lal Sharma v. J&K Industries
Ltd. [Pyare Lal Sharma v. J&K Industries Ltd., (1989) 3 SCC
448 : 1989 SCC (L&S) 484] wherein it has been stated that no
one can be penalised on the ground of a conduct which was not
penal on the date it was committed. Thereafter, the two-Judge
G Bench referred to the authority in K. Satwant Singh v. State of
Punjab [K. Satwant Singh v. State of Punjab, AIR 1960 SC
266 : 1960 Cri LJ 410] wherein it has been held thus: (Gandhi
case [State of A.P. v. Gandhi, (2013) 5 SCC 111 : (2013) 2 SCC
(Cri) 884] , SCC pp. 133-34, para 46)

H
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 767
[HEMANT GUPTA, J.]

“46. … ‘28. … In the present case a sentence of imprisonment A
was, in fact, imposed and the total of fines imposed, whether
described as ‘ordinary’ or ‘compulsory’, was not less than the
amount of money procured by the appellant by means of his
offence. Under Section 420 of the Penal Code an unlimited
amount of fine could be imposed. Article 20(1) of the
B
Constitution is in two parts. The first part prohibits a conviction
of any person for any offence except for violation of law in
force at the time of the commission of the act charged as an
offence. The latter part of the article prohibited the imposing
of a penalty greater than that which might have been inflicted
under the law in force at the time of the commission of the C
offence. The offence with which the appellant had been
charged was cheating punishable under Section 420 of the
Penal Code which was certainly a law in force at the time of
the commission of the offence. The sentence of imprisonment
which was imposed upon the appellant was certainly not greater
D
than that permitted by Section 420. The sentence of fine also
was not greater than that which might have been inflicted under
the law which had been in force at the time of the commission
of the offence, as a fine unlimited in extent could be imposed
under the section.’” (K. Satwant Singh case [K. Satwant
Singh v. State of Punjab, AIR 1960 SC 266 : 1960 Cri LJ E
410] , AIR p. 275, para 28)”
15. Recently, this Court in Uday Singh referred to earlier judgments
of this Court in State of Madhya Pradesh and Others v. Kallo Bai8
and Divisional Forest Officer and Another v. G. V. Sudhakar Rao
and Others9 to approve the argument that criminal proceedings are distinct F
from confiscation proceedings. The Court held as under:
“22. In 2017, a similar view has been taken by another two judge
Bench of this Court in Kallo Bai (supra) while construing the
provisions of the Madhya Pradesh Van Upaj (Vyapar Viniyam)
Adhiniyam, 1969. By virtue of the amendments made to G
the Adhiniyam, Sections 15-A to 15-D were introduced to provide
for confiscation proceedings in line with the provisions contained
in the Forest Act as amended in relation to the State of Madhya
8
(2017) 14 SCC 502
9
(1985) 4 SCC 573 H
768 SUPREME COURT REPORTS [2019] 10 S.C.R.

A Pradesh. Relying on the earlier decisions of this Court including GV
Sudhakar Rao (supra), Justice NV Ramana, speaking for the
two judge Bench held:
“23. Criminal prosecution is distinct from confiscation
proceedings. The two proceedings are different and parallel,
B each having a distinct purpose. The object of confiscation
proceeding is to enable speedy and effective adjudication with
regard to confiscation of the produce and the means used for
committing the offence while the object of the prosecution is
to punish the offender. The scheme of the Adhiniyam prescribes
an independent procedure for confiscation. The intention of
C prescribing separate proceedings is to provide a deterrent
mechanism and to stop further misuse of the vehicle.”
16. The proviso to sub-section (2) of Section 72 of the Act gives
an option to the owner to pay such fine as the Collector thinks adequate
not exceeding its market value in lieu of its confiscation. It, thus, transpires
D that it is the Collector who has been conferred exclusive jurisdiction to
order confiscation of a thing or animal. The Collector has been further
empowered to impose fine not exceeding the market value of the thing
on the date of seizure. Thus, the power of confiscation of a vehicle or a
thing is absolutely vested with the Collector except in certain
E circumstances, instead of confiscation, the fine, not exceeding the market
value, can also be imposed but by the Collector alone.
17. Sub-section (3) of Section 72 of the Act is exception to sub-
section (2) wherein, on receiving report of seizure or on inspection of
the seized things, including any animal, cart, vessel or other conveyance,
F which are subject to speedy wear and tear or natural decay or it is
expedient in public interest to do so, the Collector may order such things
or animal, except an intoxicant, to be sold by auction or otherwise.
Therefore, in case any seized thing is subject to speedy wear and tear or
natural decay, the Collector is empowered to sell the same by public
auction. The power to sell the thing or animal pending confiscation
G proceedings is also contemplated if it is expedient in public interest to do
so. Such provision empowers the Collector to order the sale of the vehicle
or animal if he is satisfied that it is expedient in public interest even
before an order of confiscation is passed by him.

H
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 769
[HEMANT GUPTA, J.]

18. The distribution of sale proceeds after the thing or animal is A
sold, is contemplated by sub-section (4) of Section 72 of the Act. It deals
with a situation when no order of confiscation is ultimately passed or
maintained by the Collector or an order passed on appeal under sub-
section (7) so requires. Similar power is conferred to distribute the sale
proceeds in terms of the order of the Court in case of a prosecution
B
instituted for the offence in respect of thing or animal seized. Thus, sub-
section (4) deals with the disposal of sale proceeds of the seized thing or
Animal in terms of sub-section (3) of Section 72 of the Act. In other
words, the sale conducted by auction or otherwise in terms of sub-section
(3) is complete but the distribution of proceeds of sale alone is to be
dealt with in the manner prescribed in sub-section (4) of Section 72 of C
the Act including an order of the Court dealing with prosecution instituted
for the offence.
19. Sub-section (5) of Section 72 of the Act deals with the
procedure and the limitations on the power of the Collector to sell the
seized thing including any animal, cart, vessel or other conveyance in D
terms of sub-section (3) of Section 72 of the Act. Sub-section (6) of
Section 72 of the Act confers power of review on the Collector of an
order passed under sub-section (2).
20. Sub-section (7) of Section 72 of the Act confers a right of
appeal to a judicial authority, as the State Government may appoint, against E
an order of confiscation under sub-section (2) or sub-section (6) of Section
72 of the Act. In other words, an order of confiscation, other than in
respect of seized things which are subject to speedy wear and tear or
natural decay falling in sub-section (3) of Section 72 of the Act, is subject
to appeal to the judicial authority. No appeal is provided in respect of an
order passed under sub-section (3) of Section 72 of the Act in respect of F
seized things or animal which are subject to speedy wear and tear or
natural decay or otherwise expedient in the public interest.
21. We find that in terms of Section 4 of the Code, trial of offences
under IPC are to be investigated, inquired into, tried, and otherwise dealt
with according to the provisions contained in the Code. It further provides G
that all offences under any other law shall be investigated, inquired into,
tried, and otherwise dealt with according to the same provisions, but
subject to any enactment for the time being in force regulating the manner
or place of investigating, inquiring into, trying or otherwise dealing with
such offences. The offences under the Act in terms of sub-section (2) H
770 SUPREME COURT REPORTS [2019] 10 S.C.R.

A of Section 4 of the Code are to be dealt with according to the provisions
of the Code but subject to the provisions of the Act regulating the manner
or place of investigating, inquiring into, trying or dealing with such
offences. Since the procedure of confiscation of the vehicle is prescribed
under the Act, it is the provision of the Act which will be applicable and
not Chapter XXXIV of the Code. Section 5 of the Code saves special
B
or local laws or any special jurisdiction or power conferred, or any special
form of procedure prescribed, by any other law for the time being in
force.
22. However, where a prosecution is instituted for an offence in
relation to which confiscation was ordered, the things or animals are to
C be disposed of in accordance with the order of the Court subject to
provisions of sub-section (4) of Section 72 of the Act. The order passed
by the Court where a prosecution is instituted for the offence, in terms
of sub-section (8) of Section 72 of the Act, is subject to provisions of
sub-section (4) of Section 72 of the Act. Thus, the provision again deals
D with distribution of the sale proceeds after confiscation on conclusion of
prosecution.
23. The power of release of the property produced before any
criminal court whether interim or final in terms of Sections 451, 452 or
457 of the Code will not be available to court except the order in respect
E of distribution of sale proceeds. Therefore, the power under Sections
451, 452 or 457 of the Code available to criminal court or Magistrate is
inconsistent with the provisions contained in the Act regarding disposal
of the property not only in respect of pending trial but also after the
conclusion of the trial.

F 24. The argument raised that the judgment in Narender is not
applicable to the present case cannot be accepted as the criminal court
before whom the prosecution is lodged, will not have jurisdiction to release
anything or animal whether interim or final as the Act in question has
provisions contrary to the provisions contained in the Code. This Court
in Narender relied upon the judgment in State of Karnataka v. K. A.
G Kunchindammed10 and held as under:
“13. In our opinion, the general provision of Section 451 of the
Code with regard to the custody and disposal of the property or
for that matter by destruction, confiscation or delivery to any person
10
H (2002) 9 SCC 90
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 771
[HEMANT GUPTA, J.]

entitled to possession thereof under Section 452 of the Code or A
that of Section 457 authorising a Magistrate to make an order for
disposal of property, if seized by an officer and not produced before
a criminal court during an inquiry or trial, however, has to yield
where a statute makes a special provision with regard to its
confiscation and disposal.
B
14. We have referred to the scheme of the Act and from that it is
evident that the vehicle seized has to be produced before the
Deputy Commissioner, who in turn has been conferred with the
power of its confiscation or release to its rightful owner. The
requirement of production of seized property before the Deputy
Commissioner under Section 59(1) of the Act is, notwithstanding C
anything contained in any other law, and, so also is the power of
confiscation. Not only this, notwithstanding anything to the contrary
contained in any other law for the time being in force, no court, in
terms of Section 61 of the Act, has jurisdiction to make any order
with regard to the property used in commission of any offence D
under the Act.
15. In the present case, the legislature has used a non obstante
clause not only in Section 59 but also in Section 61 of the Act. As
is well settled, a non obstante clause is a legislative device to give
effect to the enacting part of the section in case of conflict over E
the provisions mentioned in the non obstante clause. Hence,
Sections 451, 452 and 457 of the Code must yield to the provisions
of the Act and there is no escape from the conclusion that the
Magistrate or for that matter the High Court, while dealing with
the case of seizure of vehicle under the Act, has any power to
pass an order dealing with the interim custody of the vehicle on F
security or its release thereof.”
25. Though, Section 61 of the Delhi Excise Act, 2009 bars the
jurisdiction of all Courts but, even in the absence of similar provisions in
the Act, the principle laid down is applicable in the present case as the
Act is inconsistent with the provisions of the Code. G
26. The confiscation of a vehicle found in illicit transportation of
the liquor is an offence which can be investigated by an Excise Officer
as well as by a Police Officer. But the exclusive power of confiscation
is vested with the Collector in terms of sub-section (2) of Section 72 of
H
772 SUPREME COURT REPORTS [2019] 10 S.C.R.

A the Act. The sale proceeds of seized things or Animal which are subject
to speedy wear and tear or natural decay, if sold, are required to be paid
to the person found entitled thereto in terms of sub-sections (4) and (8)
of Section 72 of the Act.
27. Sub-section (9) of Section 72 of the Act clarifies that no order
B of confiscation made by the Collector shall prevent the infliction of any
punishment to which the person affected thereby may be liable under
this Act. Thus, the punishment consequent to the prosecution is distinct
from the order of confiscation passed by the Collector.
28. In Madhukar Rao’s case, the provisions of the Code and
C that of the Wild Life (Protection) Act, 1972 were examined. The Court
found that the use of a vehicle in the commission of an offence under
the Act, without anything else would bar its interim release appears to
be quite unreasonable. The Court held that the provisions of Section 50
of the Wild Life (Protection) Act, 1972 and the amendments made
thereunder do not in any way affect the Magistrate’s power to make an
D order of interim release of the vehicle under Section 451 of the Code.
The Court held as under:
“16. We are unable to accept the submissions. To contend that
the use of a vehicle in the commission of an offence under the
Act, without anything else would bar its interim release appears
E to us to be quite unreasonable. There may be a case where a
vehicle was undeniably used for commission of an offence under
the Act but the vehicle’s owner is in a position to show that it was
used for committing the offence only after it was stolen from his
possession. In that situation, we are unable to see why the vehicle
F should not be released in the owner’s favour during the pendency
of the trial.”
29. We find that sub-section (3) of Section 72 of the Act confers
power on the Collector for release of the vehicle if it is considered
expedient in public interest apart from the fact, when anything or animal
G is subject to speedy wear and tear or natural decay. Therefore, the basis
of the order in Madhukar Rao are not applicable in the case in hand.
30. After examining the provisions of the Act, we hold that the
Collector has exclusive jurisdiction to confiscate the vehicles and in case
the seized things are subject to speedy wear and tear or natural decay,
H
MUSTAFA v. STATE OF UTTAR PRADESH & ORS. 773
[HEMANT GUPTA, J.]

he may order to sell the same in the manner prescribed under sub-section A
(3) of Section 72 of the Act. Sub-section (4) deals with distribution of
sale proceeds when the seized thing is sold which is subject to wear and
tear and natural decay or when it is expedient in public interest to do so.
Sub-section (8) of Section 72 of the Act deals with a situation where a
prosecution of an offence is instituted in relation to which confiscation
B
was ordered, the thing or animal shall be disposed of subject to the
provisions of sub-section (4) of Section 72 of the Act in accordance with
the order of the Court. The order of the Court in sub-section (8) of
Section 72 of the Act is after conclusion of the prosecution which is
different from the seized things which are subject to speedy wear and
tear or natural decay as contemplated by sub-section (3) of Section 72 C
of the Act.
31. In view of the above, we do not find any error in the order
passed by the High Court which may warrant interference in the present
appeal. Since the High Court has decided the matter only on the question
of jurisdiction of the Collector to order confiscation, the matter is remitted D
back to the High Court to exercise power of judicial review over the
order of confiscation passed by the Collector and as affirmed by the
District Judge. The appeal is disposed of accordingly.

Ankit Gyan Appeal disposed of. E

F

G

H