Disposal of Property

Sub-section (2), the fourteen days. The Court shall, within fourteen days from the production of the property, prepare a statement of it containing its description, in such form and manner as the State Government provides by rules.

Sub-section (3), the photograph. The Court shall cause to be taken the photograph and if necessary videograph, on a mobile phone or any electronic media, of the property.

Sub-section (4), their status. The statement and the photograph or videography shall be used as evidence in any inquiry, trial or other proceeding.

Sub-section (5), the thirty days. The Court shall, within thirty days after the statement has been prepared and the photograph or videography taken, order the disposal, destruction, confiscation or delivery of the property in the manner specified hereinafter.

Section 498: disposal at the conclusion

Sub-section (1). When an investigation, inquiry or trial is concluded, the Court may make such order as it thinks fit for the disposal, by destruction, confiscation or delivery to any person claiming to be entitled to possession thereof or otherwise, of any property or document produced before it or in its custody, or regarding which an offence appears to have been committed, or which has been used for the commission of an offence.

Sub-section (2), the restitution bond. Delivery may be ordered without any condition, or on condition that the claimant executes a bond, with or without securities, engaging to restore the property to the Court if the order is modified or set aside on appeal or revision.

Sub-section (3). A Court of Session may, instead of making the order itself, direct the property to be delivered to the Chief Judicial Magistrate, who deals with it under sections 503, 504 and 505.

Sub-section (4), the two months. Except where the property is livestock, or is subject to speedy and natural decay, or where a bond has been executed under sub-section (2), an order under sub-section (1) shall not be carried out for two months, or, where an appeal is presented, until the appeal has been disposed of.

Sub-section (5), converted property. "Property" includes, for property regarding which an offence appears to have been committed, not only the property originally in the possession or control of a party, but also any property into or for which it may have been converted or exchanged, and anything acquired by such conversion or exchange, whether immediately or otherwise.

Sub-section (5) is the section that follows stolen money into the flat that was bought with it. It is worth a sentence in any answer on this chapter.

Sections 499 to 502: the innocent purchaser, appeals, destruction, restoration

Section 499, the innocent purchaser. Where a person is convicted of an offence which includes or amounts to theft or receiving stolen property, and it is proved:

• that another person bought the stolen property from him without knowing or having reason to believe it was stolen; and
• that money was taken out of the convicted person's possession on his arrest,

the Court may, on that purchaser's application and on restitution of the stolen property to the person entitled to possession, order that out of that money a sum not exceeding the price he paid be delivered to him within six months from the date of the order.

Section 500, appeals.

Sub-section (1). Any person aggrieved by an order under section 498 or section 499 may appeal to the Court to which appeals ordinarily lie from convictions by the former Court.

Sub-section (2). The Appellate Court may stay the order pending the appeal, or modify, alter or annul it and make any further just orders.

Sub-section (3). Those powers may also be exercised by a Court of appeal, confirmation or revision while dealing with the case in which the order was made.

Section 501, destruction of libellous and other matter.

Sub-section (1). On a conviction under section 294, 295, or section 356(3) or (4) of the Bharatiya Nyaya Sanhita, 2023, the Court may order the destruction of all copies of the thing in respect of which the conviction was had, which are in the custody of the Court or remain in the possession or power of the person convicted.

Sub-section (2). On a conviction under section 274, 275, 276 or 277 of that Sanhita, the Court may order the food, drink, drug or medical preparation in respect of which the conviction was had to be destroyed.

Section 502, restoring possession of immovable property.

Sub-section (1). Where a person is convicted of an offence by use of criminal force or show of force or by criminal intimidation, and it appears that by that force, show of force or intimidation any person has been dispossessed of immovable property, the Court may, if it thinks fit, order that possession be restored to that person, after evicting by force, if necessary, any other person in possession. Proviso: no such order shall be made more than one month after the date of the conviction.

Sub-section (2). Where the trial Court has not made such an order, the Court of appeal, confirmation or revision may do so while disposing of the appeal, reference or revision.

Sub-section (3). Section 500 applies to such an order as it applies to an order under section 499.

Sub-section (4). No order under this section shall prejudice any right or interest in the immovable property which any person may be able to establish in a civil suit.

Sub-sections (1) and (4) together are the point of section 502. It is a quick criminal remedy restoring the position force disturbed, and it settles nothing about title, which the civil court decides.

Sections 503 to 505: property seized by the police

Section 503(1). Whenever the seizure of property by a police officer is reported to a Magistrate and the property is not produced before a Criminal Court during an inquiry or trial, the Magistrate may make such order as he thinks fit respecting its disposal, or its delivery to the person entitled to possession, or, if that person cannot be ascertained, respecting its custody and production.

Sub-section (2). If the person entitled is known, the Magistrate may order delivery on such conditions as he thinks fit. If that person is unknown, he may detain it and shall issue a proclamation specifying the articles and requiring any claimant to appear and establish his claim within six months from the date of the proclamation.

Section 504(1). If no person establishes a claim within that period, and the person in whose possession the property was found is unable to show that it was legally acquired by him, the Magistrate may direct that it be at the disposal of the State Government and may be sold by it, the proceeds being dealt with as the State Government provides by rules.

Sub-section (2). An appeal lies against such an order to the Court to which appeals ordinarily lie from convictions by that Magistrate.

Section 505, perishable and low-value property. If the person entitled to possession is unknown or absent and the property is subject to speedy and natural decay, or if the Magistrate is of opinion that its sale would be for the benefit of the owner, or that its value is less than ten thousand rupees, he may at any time direct it to be sold; and sections 503 and 504 apply, as nearly as practicable, to the net proceeds of the sale.

A worked example

A car used in a robbery is seized and produced before the Magistrate.

What happens first? The Court may make an order for its proper custody pending the trial, section 497(1); and it shall prepare a statement describing it within fourteen days of its production, sub-section (2), and cause a photograph, and if necessary a videograph, to be taken, sub-section (3).

Why does that matter? Because the statement and the photograph are themselves evidence, sub-section (4), so the car itself need not be preserved as an exhibit; and the Court shall order its disposal, destruction, confiscation or delivery within thirty days of preparing them, sub-section (5).

The seized goods are vegetables. They are subject to speedy and natural decay, so the Court may, after recording such evidence as it thinks necessary, order them sold or otherwise disposed of, section 497(1).

The trial ends. The Court may order destruction, confiscation or delivery to a person claiming to be entitled to possession, section 498(1), and may take a bond to restore the property if the order is modified or set aside on appeal, sub-section (2).

The owner wants the car at once. He must ordinarily wait: an order under section 498(1) shall not be carried out for two months, or, if an appeal is filed, until it is disposed of, sub-section (4). But he may have it at once if he executes the bond under sub-section (2), and the two months do not apply to livestock or perishable property either.

The stolen money was used to buy a shop. The shop is within the definition: property includes anything into or for which the property was converted or exchanged, section 498(5).

A man had bought the stolen jewellery from the thief in good faith. On his application, and on restitution of the jewellery to the person entitled, the Court may order that out of money taken from the convict on arrest a sum not exceeding the price he paid be delivered to him within six months, section 499.

Somebody is aggrieved by the order. He may appeal to the Court to which appeals lie from convictions by that Court, and the Appellate Court may stay, modify, alter or annul it, section 500.

A different case: a man is convicted of criminal intimidation and it appears he drove the complainant off his land. The Court may order possession restored, evicting by force if necessary, but not more than one month after the conviction, section 502(1); and that order does not prejudice any right the parties can establish in a civil suit, sub-section (4).

Now property seized by the police and never produced in court. The Magistrate may order its delivery to the person entitled, or, if that person is unknown, detain it and proclaim it, requiring claims within six months, section 503. If nobody claims and the possessor cannot show it was legally acquired, the Magistrate may direct that it be at the disposal of the State Government and sold, section 504, and an appeal lies against that.

And where the property is perishable, or worth less than ten thousand rupees, or a sale would benefit the owner? The Magistrate may direct its sale at any time, and the proceeds are dealt with under sections 503 and 504, section 505.

Distinctions

What this does NOT mean

The Court is not free to hold property indefinitely. Section 497 fixes fourteen days for the statement and thirty days for the disposal order.

A disposal order is not immediately executable. Section 498(4) holds it for two months, or until an appeal is decided, outside its three exceptions.

Delivery is not a declaration of title. Section 498(1) speaks of a person claiming to be entitled to possession, and section 502(4) preserves whatever any person can establish in a civil suit.

Section 499 is not compensation. It is limited to the price the innocent purchaser paid, out of money taken from the convict on arrest, and only on restitution of the stolen property.

And section 504 is not a forfeiture for the offence. It applies where nobody claims within six months and the possessor cannot show legal acquisition, and it is appealable.

Quick revision

• 497: custody pending trial; sale of property subject to speedy and natural decay or where otherwise expedient, after recording evidence; statement within fourteen days; photograph, and if necessary videograph, on a mobile phone or electronic media; both are evidence; disposal, destruction, confiscation or delivery within thirty days.
• 498: on conclusion, destruction, confiscation or delivery to a person claiming entitlement; bond to restore on appeal; a Court of Session may send it to the Chief Judicial Magistrate; two month stay, except livestock, perishables, and where a bond is executed; property includes what it was converted or exchanged into.
• 499: an innocent purchaser may recover not more than the price he paid, out of money taken from the convict on arrest, on restitution of the stolen property, within six months.
• 500: appeal to the Court to which appeals lie from convictions by the former Court; stay, modify, alter or annul; the same powers to a Court of appeal, confirmation or revision in the case itself.
• 501: destruction of copies on a conviction under BNS ss.294, 295, 356(3) and (4), and of food, drink, drug or medical preparation under BNS ss.274 to 277.
• 502: restoration of possession of immovable property lost to criminal force, show of force or intimidation, within one month of the conviction, by an appellate, confirming or revising Court if the trial Court did not; civil rights unaffected.
• 503 to 505: police-seized property not produced in Court, delivered if the claimant is known, otherwise detained and proclaimed with six months to claim; unclaimed and unexplained property to the State Government, with an appeal; perishables, owner-benefit sales, and property under ten thousand rupees saleable at any time.

Test yourself

1. Within what time must the Court describe and photograph property produced before it? The statement of the property must be prepared within fourteen days of its production, and the Court shall cause a photograph, and if necessary a videograph on a mobile phone or other electronic media, to be taken, section 497(2) and (3).

2. Why does that matter? Because the statement and the photograph or videography are used as evidence in any inquiry, trial or other proceeding, section 497(4), and the Court must order the disposal, destruction, confiscation or delivery of the property within thirty days of their preparation, sub-section (5).

3. When can a disposal order be carried out at once? Where the property is livestock or subject to speedy and natural decay, or where a bond to restore the property has been executed under section 498(2); otherwise it waits two months, or until an appeal is disposed of, section 498(4).

4. Does "property" cover what the stolen money was spent on? Yes. Section 498(5) includes any property into or for which the original property was converted or exchanged, and anything acquired by such conversion or exchange, whether immediately or otherwise.

5. What may an innocent purchaser of stolen property recover? On his application and on restitution of the property to the person entitled to possession, a sum not exceeding the price he paid, out of money taken from the convicted person on his arrest, delivered within six months of the order, section 499.

6. Within what time may possession of immovable property be restored? Not more than one month after the date of the conviction, proviso to section 502(1); an appellate, confirming or revising Court may make the order while disposing of the case.

7. What happens to seized property nobody claims? Where the person entitled is unknown, the Magistrate proclaims the articles and allows six months for claims; if none is established and the possessor cannot show legal acquisition, the property may be directed to be at the disposal of the State Government and sold, sections 503 and 504.