Provisional release of seized gold ornaments allowed on deposit condition, while seizure was not quashed before adjudication began.

At a preliminary stage, where adjudication proceedings had not yet commenced, the Madras HC declined to quash the seizure of gold ornaments but held that provisional release was appropriate subject to a monetary deposit condition. The court balanced the pending nature of the proceedings against the petitioner's request for interim relief, directed release of the seized jewellery on deposit through the petitioner's power agent, and required full cooperation for the early conclusion of adjudication. The seizure therefore remained in force at that stage, while interim custody of the goods was permitted on conditions.

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Issues: Whether the seized gold ornaments were liable to be provisionally released pending commencement of adjudication proceedings.

Analysis: The adjudication proceedings had not yet commenced and the matter was at a preliminary stage. In those circumstances, the prayer to quash the seizure was not entertained, but provisional release of the seized goods was considered appropriate on a monetary deposit condition, with the proceedings to continue and full cooperation to be rendered for their early conclusion.

Outcome: Provisional release of the seized jewellery was directed on deposit of Rs.3,00,000 through the petitioner's power agent, and the seizure was not quashed at that stage.

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