In Brief
BSNL alleged that 5,060 kg of copper alloy moulds were stolen from its godown in 1992 and recovered from the first respondent (Surya Metals proprietor), to whom custody was awarded. After acquittal of the accused in 1999, the respondent sought return of the seized goods. The Supreme Court held that while seized property is ordinarily restored to the person from whose possession it was taken, this principle applies only when there is no dispute about ownership. Where genuine title is disputed, the criminal court may relegate claimants to the civil court. BSNL's evidence of theft and the goods' special nature (not available in open market) established a genuine dispute. The appeal was allowed; BSNL retained custody and was permitted to auction the goods, with proceeds subject to civil court directions.
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