Interim custody of seized cheques may be granted to the person entitled to possession, with evidence preserved for trial.

Custody of muddamal cheques seized during investigation under Section 457 CrPC turns on entitlement to possession, not adjudication of title or guilt. Because cheques are negotiable instruments whose utility may diminish with time, the Magistrate may direct interim delivery to the person entitled to possession, subject to conditions that preserve evidentiary value through copies and panchnama. The negotiable instrument framework, including presumptions as to consideration and holder in due course, supported release of the cheques to the petitioner. The order remanding the matter for rehearing was unsustainable.

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Issues: Whether the muddamal cheques seized during investigation were liable to be delivered to the petitioner pending trial under Section 457 of the Code of Criminal Procedure, 1973.

Analysis: The application concerned custody of property seized by police and not produced before the criminal court during inquiry or trial, where the Magistrate may order delivery to the person entitled to possession. Cheques are negotiable instruments whose efficacy may be lost by lapse of time, and their custody pending trial must be determined with reference to entitlement to possession rather than adjudication of title or guilt. The statutory scheme of the Negotiable Instruments Act, 1881, including the presumptions as to consideration and holder in due course, supports the view that the cheques could be retained by the petitioner subject to conditions, while copies and panchnama could preserve evidentiary value for trial.

Conclusion: The petitioner was entitled to custody of the cheques, and the order remanding the matter for rehearing was unsustainable.

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