29/06/2026
Magistrate Can’t Review Final Order Releasing Seized Vehicle By Re-Appreciating Ownership Dispute; Such Recall Barred By Section 362 CrPC: Orissa High Court
The Court held that once a Magistrate passes a final order granting interim custody of seized property after considering rival claims, the same cannot subsequently be recalled or reviewed based on additional material produced during the investigation.
By - Muhib Makhdoomi
Update: 2026-06-22 07:10 GMT
Magistrate Can’t Review Final Order Releasing Seized Vehicle By Re-Appreciating Ownership Dispute; Such Recall Barred By Section 362 CrPC: Orissa High Court
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The Orissa High Court has held that a Magistrate cannot indirectly review or recall a final order releasing a seized vehicle by re-examining questions of ownership based on subsequent materials collected by the Investigating Officer.
The Court further held that the cancellation of an interim custody order can ordinarily be justified only upon a violation of release conditions or other legally sustainable grounds, and not by undertaking a fresh adjudication of ownership disputes already considered when passing the original order.
The Court was hearing a petition challenging an order of the Sub-Divisional Judicial Magistrate, Kamakhyanagar, whereby an earlier order releasing a seized JCB machine in favour of the petitioner was recalled, and the petitioner was directed to produce the vehicle before the Investigating Officer.
A Single Judge Bench of Justice Sanjeeb K. Panigrahi observed: “... the impugned order falls afoul of the embargo contained in Section 362 of the Code of Criminal Procedure, 1973. The said provision unequivocally states that no Court, after it has signed its final order disposing of a case, shall alter or review the same except to correct a clerical or arithmetical error. The order dated 21.08.2023 was a final order disposing of the Petitioner’s claim for interim custody. The learned Magistrate did not purport to cancel the release on the ground of violation of any condition. Instead, he proceeded to re-appreciate the entire factual matrix concerning ownership of the vehicle including the alleged sale deed, the tax invoice, the No Objection Certificate, and the repayment records and concluded that the Petitioner’s claim was improbable. This is nothing short of a review and revision of a previous final order on the merits, which is expressly prohibited by law".
The Bench further added: "The mere labelling of the application as one for “cancellation of zimanama” cannot circumvent the statutory bar. The power to cancel an interim release order exists only when the conditions of release are breached or when the order was obtained by fraud practised upon the Court. In the present case, no condition was alleged to have been violated, and the issue of fraud is a contentious factual dispute involving examination of signatures and documents, which is yet to be adjudicated. The Magistrate, by undertaking a mini-trial on the issue of title at the behest of the Investigating Officer, has clearly acted without jurisdiction.