The State Of Karnataka vs M/S Vedanata Limited (Formerly Known As ...

3. The brief facts necessary to be noted for deciding this appeal are:

4. Another case registered was CBI Crime No. RC 17(A)/2012. Chargesheets were filed after investigation in Special C.C. No. 268/2013, Special C.C. No. 11/2014, Special C.C. No. 14/2014, Special 3 C.C. No. 15/2014, Special C.C. No. 36/2014, Special C.C. No. 37/2014, Special C.C. No. 38/2014, Special C.C. No. 53/2014, Special C.C. No. 54/2014. The State filed an application under Section 451/457 Cr.P.C. in the aforesaid cases before the XXXII Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bangalore (CCH-34), seeking permission to dispose off 56 heaps of iron ore lying at the Belekeri Port approximately weighing 2,72,713.347 Metric Tonnes by e-tender.

14. The investigation which was carried out by SIT was registered as Crime No. 2/2014. The respondent in his compilation has filed a notice issued under Section 91 Cr.P.C. to the Managing Director/Director of M/s SESA Goa Limited, presently, M/s Vedanta Limited (respondent). Notice dated 21.08.2014 refers to the Order of this Court and registration of Crime No. and it is useful to extract the opening paragraph of the notice issued to the respondent dated 21.08.2014:

15. It was in the aforesaid proceeding that final report was submitted on 12 08.10.2015. The respondent has filed a copy of the order sheet of XXXII Additional City Civil and Sessions Judge and Special Judge for Prevention of Corruption Act at Bangalore City in Crime No. 2/2014 where filing of the final report is noticed and Court also directed for issue notice to the complainant returnable by 15.12.2015. On 15.12.2015, the Court in Crime No. 2/2014 passed the following order:

7. The State filed an objection in the Writ Petitions opposing the prayers made in the Writ Petitions. The High Court vide its judgment and order dated 04.07.2017 allowed the Writ Petitions. The State aggrieved by the judgment of the High Court has come up in this appeal.

11. In the wake of the final report being submitted by the SIT, we do not find any impediment to release the iron ore in favour of the petitioner. An inventory has to be prepared and, thereafter, the iron ore shall be released in favour of the writ petitioner, immediately. The entire process must be completed by four weeks.

12. The writ petitions are, therefore, allowed.

(Directed to the Judgment Writer, transcribed by the corrected and then signed and pronounced by me in the open court on this 8th day of May 2015), Sd/-08/05 (Pradeep S. Balikal) XXXII Addl. City Civil and Sessions Judge and Spl. Judge for CBI Cases, Bangalore”

“ PRAYER Wherefore, it is prayed that this Hon’ble Court be pleased to allow the above application and direct the release in favour of the applicant company herein, of about 34,544 MT of Iron Ore belonging to the applicant company that has been seized on 20.03.2010 and is lying at the plot allotted to applicant company by Shree Mallikarjun Shipping Private Limited in Belekeri Port area, in the interest of justice & equity.

Place: Bangalore Date 08.03.2016 Applicant [Anand Prakash Dubey, Advocate for Applicant Head-Finance, (K.N. Phanindra)” Iron Ore Karnataka]

20. Learned Senior Counsel for the appellant has also brought on record subsequent judgment of the High Court where High Court in Writ Petition filed against the same Order dated 08.05.2015 by another writ petitioner has disposed off the Writ Petition granting liberty to that Writ Petitioner to approach Jurisdictional Criminal Court for release of the seized iron ore by establishing its existence and ownership rights. Reference has been made to the Order of the Karnataka High Court dated 20.11.2017 in Writ Petition Nos. 29527-29531 of 2017 and Writ Petition Nos. 29881-29884 of 2017 filed as Annexure P-11.

21. In result of foregoing discussion, we are of the view that order and judgment of the High Court is wholly unsustainable and is hereby set aside. We, however, observe that it shall be open for the respondent to file an appropriate application before the XXXII Additional City Civil and Sessions Judge and Special Judge for CBI Cases, Bangalore (CCH-34), for release of seized iron ore by establishing its existence and its ownership right over the same, which may be considered by Jurisdictional Criminal Court in accordance with law. The Criminal Appeal is allowed.