Inherent powers can secure release of seized currency during pending proceedings, subject to bank guarantee and no prejudice to adjudication.

The Delhi High Court held that its inherent powers under Section 482 of the Code of Criminal Procedure could be invoked to prevent injustice during pending adjudication, provided the proceedings were not prejudiced. Applying that principle, the Court found that seized currency could be released against suitable security and accepted an undertaking that the identity of the money would not be disputed. The seized currency was therefore ordered to be released to the petitioner on furnishing a bank guarantee to the satisfaction of the Enforcement Directorate, and the impugned order was set aside.

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Issues: Whether the High Court should exercise its inherent powers to direct release of currency seized by the Enforcement Directorate during pendency of adjudication, on the furnishing of security.

Analysis: The Court held that, in the interests of justice, its inherent powers under Section 482 of the Code of Criminal Procedure, 1973 could be invoked to prevent injustice while ensuring that pending proceedings were not prejudiced. It found that the seized currency could be released against a bank guarantee, and accepted the undertaking that the identity of the seized money would not be challenged.

Conclusion: The seized currency was ordered to be released to the petitioner on furnishing a bank guarantee of Rs. five lakhs to the satisfaction of the Enforcement Directorate, and the impugned order was set aside.

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