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Issues:
1. Interpretation of Section 11 of the Opium Act and the Madhya Bharat Amendment Act. 2. Confiscation of conveyance used for transporting contraband opium. 3. Discretion of the Court in confiscation proceedings. 4. Rights of third parties in confiscation cases. Analysis: The judgment deals with the appeal against the Madhya Pradesh High Court's decision in a Criminal Revision case involving the confiscation of a truck used for transporting contraband opium. The case arose when the truck was searched, and contraband opium was found in it. The Additional District Magistrate convicted three persons and acquitted one, while ordering the final decision on the truck's disposal after the trial of another accused, Harbhajan Singh, who had a hire-purchase agreement with M/s. Azad Bharat Finance Co. regarding the truck. The key issue revolved around the interpretation of Section 11 of the Madhya Bharat Amendment Act, which mandated the confiscation of conveyances used in transporting contraband opium. The Magistrate and the Sessions Judge held that the word "shall" in the section was mandatory, requiring confiscation regardless of the owner's knowledge or involvement. However, the High Court interpreted "shall" as permissive, allowing discretion to confiscate the conveyance only if it belonged to the offender. The Supreme Court upheld the High Court's interpretation, emphasizing that the word "shall" does not always denote a mandatory obligation, especially in penal statutes. The Court considered factors like avoiding unjust outcomes, preventing penalties on innocent parties, and ensuring compliance with constitutional rights. It concluded that Section 11 of the Madhya Bharat Act granted discretion to the Court to decide on confiscation based on the circumstances of each case. Furthermore, the Court addressed the argument that a third party, M/s. Azad Bharat Finance Co., had no standing to challenge the confiscation order. It ruled that since this point was not raised before the High Court, it could not be raised at the appeal stage. Consequently, the appeal was dismissed, affirming the High Court's decision on the discretionary nature of confiscation proceedings and rejecting the challenge based on the rights of third parties in such cases.
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