LexGENERAL INSURANCE COUNCIL AND ORS. versus STATE OF ANDHRA PRADESH AND ORS.
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[2010] 5 S.C.R. 97 GENERAL INSURANCE COUNCIL AND ORS. v. STATE OF ANDHRA PRADESH AND ORS. (Writ Petition (C) No. 14 of 2008) APRIL 19, 2010 [P. SATHASIVAM AND DEEPAK VERMA, JJ.] A B Code of Criminal Procedure, 1973 - ss.451 and 457 - Directions issued by StJpreme Court in two earlier cases with regard to disposal of seized vehicles involved in commission C of various offences - Petition under Art. 32 of the Constitution alleging non-compliance of such directions - Considering the mandate of s.451 rlw s.457, further directions now issued by Supreme Court - In addition, all State Governments/Union Territories/ Director Generals of Police directed to ensure D macro implementation of the statutory provisions - Activities · of each and every police station, especially with regard to disposal of seized vehicles, directed to be taken care of by the Inspector General of Police of the concerned Division! Commissioner of Police of the concerned cities/ E Superintendent of Police of the concerned district - On non- compliance of the directions, action to be taken against the erring officials - Motor Vehicles Act, 1988 - s. 158(6) - Central Motor Vehicle Rules, 1989 - r.159 - Constitution of India, 1950 - Article 32. In two earlier cases, viz. Sunderbhai Ambalal Desai's case* and General Insurance Council's case**, the Supreme Court had issued certain directions with regard to disposal of seized vehicles involved in the commission F of various offences. G A writ petition under Article 32 of the Constitution was filed wherein it was contended that the police, the investigating agency and the prosecuting agency were 97 H 98 SUPREME COURT REPORTS [2010] 5 S.C.R. A not taking appropriate and adequated's1teps1 'for compliance of the directions issued by this Court in the aforesaid two cases. Prayer was made for further directions, orders and clarifications, so that national waste with regard to the seized vehicles may not become B junk and their road worthiness be maintained. Disposing of the writ petition, the Court HELD: 1.1. The information with regard to all insured vehicles in the country is available with the Insurance C Information Bureau created by IRDA. This information could be utilised to assist the police to identify the insurer of the vehicle. Upon recovery of the vehicle in police station, insurer/complainant can call an All India Toll Free No. to be provided by Insurance Information Bureau to D give the information of .the recovered vehicle. Thereafter, the insured vehicle database would be searched to identify the respective insurer. Upon such identification, this information can be communicated to the respective insurer and concerned police stations for necessary E coordination. The information is required to be utilised and followed scrupulously and has to be given positively as and when asked for by the Insurer. Also it is necessary that in addition to the directions issued by this Court in Sunderbhai Amba/al Desai's case, considering the F mandate of Section 451 read with Section 457 of tl:le CrPC, the following further directions with regard to seized vehicles are required to be given. ' "(A) 'Insurer may be permitted to move a separate application for release of the recovered vehicle as so.on G as it is informed of such recovery before the Jurisdictional Court. Ordinarily, release shall tie made within a period of 30 days from the date of the application. The necessary photographs may be taken duly authenticated and certified, and a detailed panchnama H may be prepared before such release. (B) The GENERAL INSURANCE COUNCIL v. STATE OF 99 ANDHRA PRADESH photographs ~o taken may be used as secondary A evidence during trial. Hence, physical production of the vehicle may be dispensed with. Insurer would submit an undertaking/guarantee to remit the proceeds from the sale/auction of the vehicle conducted by the Insurance Company in the event that the Magistrate finally B adjudicates that the rightful ownership of the vehicle does not vest with the insurer. The undertaking/guarantee would be furnished at the time of release of the vehicle, pursuant to the application for release of the recovered vehicle. Insistence on personal bonds may be dispensed c with looking to the corporate structure of the insurer." [Paras 13, 14) [105-H; 106-A-H; 107-A-B] 1.2. It is a matter of common knowledge that as and when vehicles are seized a
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