NON-REPORTABLE

IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO.1607 OF 2008 (arising out of SLP(Crl.)No.5383 of 2006)

M/S SATNAM AGRO INDUSTRIES & ANR.        ....APPELLANTS

                     VERSUS

STATE OF PUNJAB & ORS.                   ....RESPONDENTS

WITH

CRIMINAL APPEAL NO. 1608 OF 2008 (arising out of SLP(Crl.)....CRL.M.P.No.6707/2007)

O R D E R

Delay condoned.

Leave granted.

Heard learned counsel for the parties.   

This Court on 9th September, 2008 has given a proposal to the counsel for the

parties to the effect that paddy/rice, which is a perishable item lying in the court

custody, be sold by public auction to be conducted by the court to avoid any further

loss and the sale proceeds be deposited in the court and the court shall keep the said

amount in a fixed deposit receipt in a nationalised bank to earn interest on the said

amount.  But in the meantime, complaint filed by M/s. Punjab State Civil Supplies

Corporation Ltd. (in short 'PUNSUP')  and  declaration  suit

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may continue and on the end of the proceedings whosoever is found entitled shall get

the sale proceeds received by public auction along with interest accrued thereon.  It

was made clear to all the parties that whosoever would be responsible for causing

loss should make good the difference of the actual amount minus the sale proceeds to

the other party along with interest as directed by the court.

Today,  Mrs.  Jayashree Wad, learned counsel appearing for the PUNSUP,

submits  that  the  said  proposal  for  selling  the  paddy/rice  by  public  auction  is

acceptable to the Corporation.  She further submits that the amount so recovered

from the open auction shall not be paid to the appellant without furnishing Bank

Guarantee.

We have gone through the judgment of  the High Court impugned in this

appeal.  Looking to the facts of the case and the controversy involved, we in the

interest of both the parties order that the peddy/rice presently lying in the court

custody at Guruharsahai, District Firozpur shall be put to public auction.  Additional

Chief Judicial Magistrate, Firozpur shall conduct the public auction with the help of

the Collector of the District or any other officer authorised by the Collector, after

giving due  publicity to  the  prospective auction purchasers as  per the  procedure

adopted  by  the  concerned  Executive  Officer.  

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The sale proceeds received from such auction, initially shall be paid to the appellant –

M/s. Satnam Agro Industries subject to the condition that the appellant-Firm shall

furnish bank guarantee for the said amount before the  Additional Chief Judicial

Magistrate, Firozpur.  The process of auction shall be finalised within six weeks from

this order.  All rights and contentions raised by the parties before us are left open for

the decision of the appropriate authority in appropriate proceedings.  We hope that

the civil suit and the criminal proceedings pending in the respective courts shall be

expeditiously decided.

The Criminal Appeals are accordingly disposed of.   

.............................J. (LOKESHWAR SINGH PANTA)         

.............................J. (V.S. SIRPURKAR)                

NEW DELHI, OCTOBER 14, 2008.