Release of seized property permitted when investigation is complete and court safeguards can protect further dealings.

Seized property may be released to the claimant when it is no longer required for investigation and custody can be protected by suitable court-imposed conditions. Here, the accused raised no objection to release, and the Income Tax Department stated that no further action was warranted and did not seek continued custody of the shares or instruction slip books. In those circumstances, the refusal by the Magistrate and revisional court to release the seized materials was unsustainable, and the claimant was entitled to handover of the instruction slip books and transfer of the shares subject to appropriate safeguards.

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Issues: Whether the seized shares and instruction slip books could be released to the petitioner and the orders of the Magistrate and revisional court refusing such release were liable to be quashed.

Analysis: The property in question had been seized during investigation and was sought under the provision governing custody and disposal of seized property. The accused had raised no objection to release in favour of the petitioner, and the Income Tax Department, after inquiry, reported that no further action was warranted and did not press for continued custody of the materials for its investigation. In these circumstances, the seized instruction slip books and the shares represented in the demat accounts were not required to remain under detention, though any further dealing with the shares could be regulated by the trial court through appropriate safeguards.

Conclusion: The refusal to release the seized property was unsustainable, and the petitioner was entitled to handover of the instruction slip books and transfer of the shares on suitable conditions.

Ratio Decidendi: Seized property may be released to the claimant when it is no longer for investigation and the proposed release can be protected by suitable conditions imposed by the court.

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