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Criminal Law

Disposal of Property under BNSS

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 18-Oct-2024

Introduction 

  • Provisions related to disposal of property are given under Chapter XXXVI of Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). 
  • The term disposal is used by the courts to demolish or dispose of any asset due to various reasons. 
  • Some of reasons are ageing of the property, changes in performance or capacity requirement of the property. 
  • The court first examines the property in accordance with the provisions provided under BNSS. 

Property Includes  

  • As per the explanation given under Section 497 of the BNSS property includes: 
    • Property of any kind or document which is produced before the Court, or which is in its custody. 
    • Any property regarding which an offence appears to have been committed or which appears to have been used for the commission of any offence. 

Various Provisions Related to Disposal of Property 

  • Order for Custody and Disposal of Property pending trial in certain cases (Section 497): 
    • Subsection (1) states that when the property related dispute is e investigation, inquiry or trial, and, if the property is subject to speedy and natural decay, or if it is necessary to do so, the Court or the Magistrate may, after recording such evidence as it thinks necessary, order it to be sold or otherwise disposed of. 
    • Subsection (2) states that the Court or Magistrate shall prepare the description of such property as per the State Government’s rule within a period of 14 days from the production of property. 
    • Subsection (3) states that the court may take the electronic record of the property. 
    • Subsection (4) states that the records taken shall be used as evidence in any inquiry, trial or other proceedings under this act. 
    • Subsection (5) states that the court shall within a period of 30 days from collecting evidence order e disposal, destruction, confiscation or delivery of the property in the manner specified hereinafter.
  • Order for Disposal of Property at Conclusion of Trial (Section 498): 
    • Subsection (1) states that when an investigation, inquiry or trial in  any criminal case is concluded the court ,may pass such order as it thinks fit for the disposal, by destruction, confiscation or delivery to any person claiming to be entitled to possession or otherwise, of any property or document produced before it or in its custody, or regarding which any offence appears to have been committed, or which has been used for the commission of any offence 
    • Subsection (2) states that the court may order to deliver any property to the person claiming possession , without any condition or on condition that he executes a bond, with or without securities, to the satisfaction of the Court or the Magistrate, engaging to restore such property to the Court if the order made under sub-section (1) is modified or set aside on appeal or revision. 
    • Subsection (3) states that the court instead of making order under subsection (1) direct the property to be delivered to the Chief Judicial Magistrate, who shall thereupon deal with it in the manner provided in sections 503, 504 and 505 
    • Subsection (4) states that an order made under sub-section (1) shall not be carried out for two months, or when an appeal is presented, until such appeal has been disposed of except where the property is related to livestock or is subject to speedy and natural decay. 
    • Subsection (5) states that the property under this section includes: 
      • Property regarding which an offence appears to have been committed. 
      • Such property as has been originally in the possession or under the control of any party. 
      • Any property into or for which the same may have been converted or exchanged. 
      • Anything acquired by such conversion or exchange, whether immediately or otherwise.
  • Payment to Innocent Purchaser of Money found on Accused (Section 499): 
    • This section states that when any person is convicted of any offence which includes, or amounts to, theft or receiving stolen property the Court may, on the application of such purchaser and on the restitution of the stolen property to the person entitled to the possession thereof, order that out of such money a sum not exceeding the price paid by such purchaser be delivered to him within six months from the date of such order.
  • Appeal against Orders under Section 498 or Section 499 (Section 500): 
    • Subsection (1) states that a person aggrieved under Section 498 and 499 may file an appeal before the court where the appeals ordinarily lie. 
    • Subsection (2) states that the appellate Court may stay, dispose, modify, alter or annul the order. 
    • Subsection (3) states that the appellate court may also give confirmation or revision while dealing with the case in which the order referred to in sub-section (1) was made.
  • Destruction of Libelous and other Matter (Section 501): 
    • Subsection (1) states that on a conviction under section 294, section 295, or sub-sections (3) and (4) of section 356 of the Bharatiya Nyaya Sanhita, 2023, the Court may order the destruction of all the copies of the thing in respect of which the conviction was had, and which are in the custody of the Court or remain in the possession or power of the person convicted. 
    • Subsection (2) states that on a conviction under section 274, section 275, section 276 or section 277 of the Bharatiya Nyaya Sanhita, 2023, order the food, drink, drug or medical preparation in respect of which the conviction was had, to be destroyed.
  • Power to Restore Possession of Immovable Property (Section 502): 
    • Subsection (1) states that when a person is convicted of an offence by use of criminal force or show of force or by criminal intimidation, and it appears to the Court that, by such use of force or show of force or intimidation, any person has been dispossessed of any immovable property, the Court may, if it thinks fit, order that possession of the same be restored to that person after evicting by force, if necessary, any other person who may be in possession of the property 
    • It is provided that the order shall be made within 1 month after the date of conviction. 
    • Subsection (2) states that the trial court has not made any order, the appellate court. Revision or confirmation Court may make an order while disposing of the appeal, reference or revision. 
    • Subsection (3) states that the provisions of section 500 shall apply in relation thereto as they apply in relation to an order under section 499. 
    • Subsection (4) states that no order shall be made in such a manner that it prejudice any right or interest to or in such immovable property which any person may be able to establish in a civil suit.
  • Procedure by Police upon Seizure of Property (Section 503): 
    • Subsection (1) states that property seizure is reported and not produced before the court , the court may make such order as he thinks fit respecting the disposal of such property or the delivery of such property to the person entitled to the possession thereof, or if such person cannot be ascertained, respecting the custody and production of such property. 
    • Subsection (2) states that if the entitles person is a known person the magistrate may order the delivery of the property or him 
      • If the person is unknown then the court may detain it and shall, in such case, issue a proclamation specifying the articles of which such property consists, and requiring any person who may have a claim thereto, to appear before him and establish his claim within six months from the date of such proclamation.
  • Procedure where no Claimant appears within Six Months (Section 504): 
    • Subsection (1) states that if no person establishes his claim in the property and failed to show that he has legally acquired the property , the Magistrate may by order direct that such property shall be at the disposal of the State Government and may be sold by that Government and the proceeds of such sale shall be dealt with in such manner as the State Government may, by rules, provide. 
    • Subsection (2) states that an appeal against such order shall lie before the court where the appeal ordinarily lies.
  • Power to Sell Perishable Property (Section 505): 
    • This section states that If the person entitled to the possession of such property is unknown or absent and the property is subject to speedy and natural decay, or if the Magistrate to whom its seizure is reported is of opinion that its sale would be for the benefit of the owner, or that the value of such property is less than ten thousand rupees, the Magistrate may at any time direct it to be sold; and the provisions of sections 503 and 504 shall, as nearly as may be practicable, apply to the net proceeds of such sale. 

Conclusion  

The provisions related to disposal of property are clearly explained and the timelines mentioned are to be followed specifically. The provisions clearly state the duties of Police authorities and the judicial authorities for preventing any kind of miscarriage of justice.