Attachment of hypothecated vehicle - financier filed application to interim custody of vehicle - maintainable

Citation

2014(2) CWC 601

Cholamandalam investment and finance vs the chief secretary of government 

IN THE HIGH COURT OF MADRAS

T.S. Sivagnanam, J.

W.P. No. 28583 of 2013 & C.R.C. Nos. 259 to 255 of 2014.

Jone 23, 2014

Cholamandalam Investment & Finance Co. Ltd., Coimbatore, Rep. Assistant Manager Legal, Mr. C. Bhagyaraj...Petitioner

...vs...

The Chief Secretary to Govt., Govt. of Tamil Nadu, Fort St. George, Chennai-9; the Principal Secretary to Govt., Govt. of Tamil Nadu, Home, Fort St. George, Chennai-9; the Competent Authority & District Revenue Officer, Erode; the Inspector of Police, Economic Offence Wing, Erode; Suvi Emu Farms, Rep. by Its Partner, Indumathi, Old No.2/132, New No.2/130, Kasipillampalayam, Kampuliyampatti, Perundurai, Erode-638 056; Suvi Emu Farms (India) Pvt. Ltd., Rep. by Its Director Indumathi, Old No.2/132, New No.2/130, Kasipillampalayam, Kampuliyampatti, Perundurai, Erode-638 056...Respondent

Code of Criminal Procedure, 1973 (2 of 1974), Sections 451 & 457- Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act, 1997 (T.N. Act 44 of 1997), Section 3 Custody and disposal of property pending trial- Procedure on seizure of property Default in return of Deposits-Property of Accused attached including a Vehicle purchased under Hire Purchase Agreement Finance Company filed Application seeking interim custody of Vehicle Special Court dismissed Application holding that Government has every power to attach property- Revision filed Under Hire Purchase transactions ownership remains with Financiers Accused only a hirer Question of right to seek custody of vehicle in light of Hypothecation Agreement vis a vis power to seize property under TNPID Act not dealt with in impugned Order Matter remanded for fresh consideration. [Paras 20, 22 to 24]