Sikandar Ajam Vs State of Bihar (Patna High Court)
The Patna High Court considered a writ petition challenging confiscation-related orders passed under the Bihar Prohibition and Excise Act, 2016 and the Bihar Prohibition and Excise Rules, 2021. The District Magistrate-cum-Collector had ordered release of a seized vehicle on payment of 50% of its insured value along with an additional 3%, failing which confiscation would follow. The appellate authority affirmed this order.
The petitioner, claiming ownership of the vehicle, stated that it had been leased out under a vehicle lease agreement via a car-sharing platform. During the lease period, the vehicle was intercepted and found transporting 317.88 liters of foreign liquor, leading to seizure and registration of an FIR under the relevant excise provisions. The petitioner argued that the penalty of 50% of the insured value was excessive and unjustified, and that the additional 3% had no legal basis. Reliance was placed on prior decisions where the Court had held that such additional levy lacked sanction of law.
The State contended that the vehicle was involved in transportation of a large quantity of liquor and that the penalty imposed was justified; it was also argued that disputes arising from the lease agreement were matters of private law. The State, however, did not dispute that in similar cases the Court had reduced penalties to 30% of the insured value.
