2010 (4) TMI 1206 - SC - Indian Laws

National waste of seized vehicles involved in commission of various offences - Insurance on vehicles - seeking directions so that national waste with regard to the seized vehicles involved in commission of various offences may not become junk and their road worthiness be maintained - Facts of the present case, the report of 2005 of NCRB, 84,675 vehicles were reported lost, out of which 24,918 vehicles were recovered by the police and out of these, only 4,676 vehicles were finally co-ordinated. As a result, several hundred crores worth of assets were lost. Further, by the time the recovered vehicles are released, the same are reduced to junk at the respective police stations. HELD THAT - Petitioners have submitted that information with regard to all insured vehicles in the country is available with the Insurance Information Bureau created by IRDA. This information could be utilised to assist the police to identify the insurer of the vehicle. Upon recovery of the vehicle in police station, insurer/ complainant can call an All India Toll Free No. to be provided by Insurance Information Bureau to give the information of the recovered vehicle. Thereafter, the insured vehicle database would be searched to identify the respective insurer. Upon such identification, this information can be communicated to the respective insurer and concerned police stations for necessary coordination. In our considered opinion, the information is required to be utilised and followed scrupulously and has to be given positively as and when asked for by the Insurer. We also feel, it is necessary that in addition to the directions issued by this Court in Sunderbhai Ambalal Desai 2002 (10) TMI 773 - SUPREME COURT considering the mandate of Section 451 read with Section 457 of the Code, further directions with regard to seized vehicles are required to be given, like insurer may be permitted to move a separate application for release of the recovered vehicle as soon as it is informed of such recovery before the Jurisdictional Court, The photographs so taken may be used as secondary evidence during trial. Hence, physical production of the vehicle may be dispensed with and Insurer would submit an undertaking/guarantee to remit the proceeds from the sale/auction of the vehicle conducted by the Insurance Company in the event that the Magistrate finally adjudicates that the rightful ownership of the vehicle does not vest with the insurer. It is a matter of common knowledge that as and when vehicles are seized and kept in various police stations, not only they occupy substantial space of the police stations but upon being kept in open, are also prone to fast natural decay on account of weather conditions. Even a good maintained vehicle loses its road worthiness if it is kept stationary in the police station for more than fifteen days. Apart from the above, it is also a matter of common knowledge that several valuable and costly parts of the said vehicles are either stolen or are cannibalised so that the vehicles become unworthy of being driven on road. We direct that all the State Governments/ Union Territories/Director Generals of Police shall ensure macro implementation of the statutory provisions and further direct that the activities of each and every police stations, especially with regard to disposal of the seized vehicles be taken care of by the Inspector General of Police of the concerned Division/Commissioner of Police of the concerned cities/Superintendent of Police of the concerned district. In case any non-compliance is reported either by the Petitioners or by any of the aggrieved party, then needless to say, we would be constrained to take a serious view of the matter against an erring officer who would be dealt with iron hands. With the aforesaid directions, this writ petition stands finally disposed of.

Summary

Issues: Violation of fundamental rights under Articles 14 and 19 of the Constitution of India, compliance with Sections 451 and 457 of the Code of Criminal Procedure, 1973, compliance with Section 158 (6) of the Motor Vehicles Act, 1988 and Rule 159 of the Central Motor Vehicles Rules, 1989.

In this judgment, the petitioners, General Insurance Council and others, approached the Supreme Court under Article 32 of the Constitution of India, alleging a violation of fundamental rights under Articles 14 and 19. Despite previous judgments addressing the interpretation and implementation of Sections 451 and 457 of the Code of Criminal Procedure, the petitioners sought further directions due to unresolved issues. They highlighted the loss of assets due to inefficiencies in handling seized vehicles involved in offenses, leading to substantial national waste. The petitioners emphasized the need for proper maintenance and disposal of seized vehicles to prevent them from becoming junk. The Court acknowledged the importance of expeditiously exercising powers under Section 451 of the Code to prevent misuse or deterioration of seized articles. It directed the handing over of seized vehicles to the complainant or insurance company after necessary documentation and security measures to maintain road worthiness and prevent tampering.

Regarding compliance with Section 158 (6) of the Motor Vehicles Act and Rule 159 of the Central Motor Vehicles Rules, the Court emphasized the mandatory nature of these provisions and directed all State Governments and Union Territories to ensure compliance. It instructed regular monitoring by police authorities and specified consequences for non-compliance. Despite previous directions, the petitioners raised concerns about inadequate steps taken by authorities, leading to the need for further directions to ensure compliance. The Court noted that most states had issued guidelines for compliance with relevant provisions, indicating a consensus on the matter.

The petitioners proposed utilizing the Insurance Information Bureau's database to assist in identifying insurers of recovered vehicles, emphasizing the need for timely information sharing. The Court agreed with the proposal and issued additional directions for the release of recovered vehicles by insurers, including specific timelines, documentation requirements, and guarantees for proceeds from vehicle sales. It emphasized the importance of preventing decay and theft of seized vehicles, directing comprehensive implementation of statutory provisions and oversight by police authorities at various levels. Non-compliance would be dealt with severely. With these directions, the writ petition was finally disposed of, aiming to address the concerns raised by the petitioners and ensure effective handling of seized vehicles to reduce national waste and maintain road worthiness.