Conditional release of seized goods upheld where Magistrate acted within jurisdiction in pending criminal proceedings.

Where seized goods were before the criminal court in pending proceedings, the Magistrate could direct interim custody and conditional release on furnishing a bank guarantee under Section 451 of the Code of Criminal Procedure, 1973. The challenge was confined to the two orders granting release and authorising auction if the guarantee was not furnished, and the Court found no demonstrated illegality or jurisdictional error on that limited record. The conditional release direction was therefore sustained, and the challenge failed; only limited time was extended to furnish the guarantee and auction was stayed temporarily.

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Issues: Whether the Magistrate was justified in directing release of the seized goods only on furnishing a bank guarantee and in authorising auction if the guarantee was not furnished.

Analysis: The customs proceedings on the original import had ended and the goods had been delivered to the petitioners after payment of duty and redemption fine, but the goods were later re-seized on different grounds and a criminal complaint was pending before the Magistrate. In that setting, the challenge before the Court was confined to the two impugned orders of the Magistrate, and the subsequent seizure and show-cause notice were not under challenge. On the limited pleadings before it, the Court held that no illegality or jurisdictional error was shown in the Magistrate's exercise of power in connection with the pending criminal case. The petitioners were free to take the goods upon complying with the condition imposed, and the condition of furnishing bank guarantee was treated as within jurisdiction.

Conclusion: The Magistrate's orders were upheld and the challenge to the conditional release of the goods failed.

Final Conclusion: The petition was dismissed, with only a limited extension of time to furnish the bank guarantee and a temporary stay on auction.

Ratio Decidendi: Where goods are before the criminal court in pending proceedings, the court may pass appropriate orders regarding interim custody and conditional release under Section 451 of the Code of Criminal Procedure, 1973, and interference will not be warranted absent a demonstrable jurisdictional error on the limited challenge raised.

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