Introduction

In a significant ruling, the Division Bench of the Patna High Court comprising Hon’ble the Acting Chief Justice P.B. Bajanthri and Hon’ble Mr. Justice S. B. Pd. Singh directed the Bihar Government to compensate the petitioner, Sharad Navnath Gange, with ₹21,00,000 in connection with an unlawful vehicle confiscation and auction under the Bihar Prohibition and Excise Act, 2016.

The petitioner, a Maharashtra-based truck owner, challenged the order dated 20.02.2023 passed in Excise Confiscation Case No. 04/2023, wherein his truck (Registration No. MH-04JU-0423) was seized after recovery of 477 litres of Indian Made Foreign Liquor and later auctioned at a mere ₹2.2 lakhs without any notice or hearing. The Court found that the confiscation proceedings were carried out in gross violation of the principles of natural justice, as no proper notice was served to the petitioner, and the authorities failed to verify his ownership details from the District Transport Office.

The Bench observed that the State officials acted mechanically and ignored statutory safeguards under Sections 47, 57B, and 58 of the Bihar Prohibition and Excise Act, 2016 and Rule 12A of the Bihar Prohibition and Excise Rules, 2021. The Court emphasized that confiscation of a vehicle is permissible only if it is used for transporting liquor with the owner’s consent or connivance, which was absent in this case.

Holding the action of the authorities as arbitrary and violative of Articles 14 and 300A of the Constitution, the Court quashed the confiscation order. It noted that despite no proof of the petitioner’s involvement, the vehicle had been auctioned at an undervalued price, whereas its insurance value was ₹21 lakh at the time of seizure.

Earlier, by order dated 19.03.2025, the Court had directed the State to deposit ₹21 lakh and initiate criminal proceedings against the erring officials. The State’s appeal before the Hon’ble Supreme Court was dismissed on 07.05.2025, following which a demand draft of ₹21 lakh was deposited with the Patna High Court Registry.

Finally, the Bench directed the Registrar General to release the said amount to the petitioner after he deposits a penal amount of ₹5 lakh with the government treasury. The Court reiterated that deprivation of property without authority of law violates constitutional guarantees and stressed accountability of officers acting beyond statutory limits.

Case Title: Sharad Navnath Gange vs. The State of Bihar & Ors.
Case No.: CWJC No. 18561 of 2023
Coram: Hon’ble The Acting Chief Justice P. B. Bajanthri & Hon’ble Mr. Justice S. B. Pd. Singh