Patna High Court
M/S Ashirvad Plasto vs The State Of Bihar on 31 July, 2025
Author: P. B. Bajanthri
Bench: P. B. Bajanthri, Alok Kumar Pandey
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.3596 of 2025
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M/s Ashirvad Plasto through its Proprietor Devkinandan Bihani (male), aged
about 70 years, Son of Sri Raghunath Prasa Bihani, At Nandan, Post- Lothan
Rampuri, Hari, P.S. Maripur, District- Muzaffarpur, resident of near R.K.
Ashram, Bela, Mithanpura, Police Station- Bela, District- Muzaffarpur-
842002.
... ... Petitioner/s
Versus
1. The State of Bihar through the Collector-cum-District Magistrate,
Muzaffarpur.
2. The Excise Commissioner, Department of Excise, Secretariat, Bihar, Patna.
3. The Superintendent of Police, Muzaffarpur.
4. The Excise Superintendent, Muzaffarpur.
5. The Officer-in-Charge, Bela Industrial Estate, Police Station Bela, District-
Muzaffarpur.
6. The State of Bihar through the Additional Chief Secretary, Department of
Industries, Government of Bihar, Patna.
7. The Managing Director, Bihar Industrial Area Development Authority
(BIADA), Udyog Bhawan, East Gandhi Maidan, Patna- 800004.
8. The Secretary, Bihar Industrial Area Development Authority (BIADA),
Udyog Bhawan, East Gandhi Maidan, Patna- 800004.
9. The Executive Director, Bihar Industrial Area Development Authority
(BIADA), Regional Office at Muzaffarpur.
10. Area In-charge, Bihar Industrial Area Development Authority (BIADA),
Bela Industrial Area, Department of Industries, Muzaffarpur.
11. Md. Arsad, son of Md. Rasid, resident of village- Godna Khab Toli, Post-
Ravelganj, P.S. Ravelganj, District- Saran (Bihar)- 841308, Adhar
No.765239230369.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Ajay Prasad, Adv.
Mr.Ajit Kumar Sinha, Adv.
For the Respondent/s : Mr.Anil Kumar Singh, GP 26
Mr.Nawal Kishore Singh, Adv.
======================================================
CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI
and
HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY
C.A.V. JUDGMENT
(Per: HONOURABLE MR. JUSTICE ALOK KUMAR PANDEY)
Date : 31-07-2025
In the instant writ petition, petitioner has prayed for
the following relief (s) :-
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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"(i) For quashing of the order dated
24.09.2024
passed by the learned Excise
Commissioner (Respondent no. 2) in Excise
Appeal Case No. 45 of 2024 on application
of the petitioner without assigning any
reason against the petitioner.
(ii) For issuance of a direction to the
respondent authority with regard to open
seal of the petitioner factory bearing Land
Plot No. D-13, Industrial Estate,
Muzaffapur, area of land 5400 square feet,
the lease hold land for production of PVC
pipe, granules and suthly on the basis of
lease hold land for a period of 93 years
which has been sealed by the Excise
Department during the pendency of
confiscation proceeding and a criminal
case OR prejudice right of state for
confiscation proceeding.
(iii) For grant of any other relief/reliefs to
which the petitioner may be found entitled
to in the interest of justice.”
2. Briefly stated, facts of the case is that 13731.840
liters India Made Foreign Liquor (I.M.F.L.) was recovered from
different vehicles which were parked in the premises of
Ashirvad Plasto Industries. On the basis of alleged recovery,
police instituted a case bearing Bela P.S. Case No. 35 of 2023
for the offences punishable under sections 272, 273, 34 of the
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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Indian Penal Code and sections 30(a), 32(i), 41(i) of the Bihar
Prohibition and Excise Act.
3. Learned counsel for the petitioner submitted that
petitioner filed an application on 26.05.2010 for allotment of a
land for the purpose of running the industries under the name
and style of Ashirvad Plasto Industries for production of PVC
granules, H.P. Pipe and Suthly. Accordingly, BIADA allotted
5400 Sq. ft. land (Plot No. D-13) to the petitioner on 28.06.2010
and a lease agreement was executed between petitioner and
BIADA for a period of 90 years. It has been submitted that after
allotment of the land vide allotment letter no. 965 dated
28.06.2010 (Annexure-P/2), petitioner got registered under the
Industries Department and installed machinery for the purpose
of running the industries and started production of plastic
granules and HP Pipe. For the said purpose, on petitioner’s
application, electricity connection was granted by the Electricity
Department. It has been further submitted that several industrial
plots are situated on the way to the factory of the petitioner.
Petitioner is living out of station for his certain treatment and he
had no knowledge about the vehicles parked in the factory
premises. It has been further submitted that no illicit liquor has
been recovered from the premises of the petitioner and the
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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trucks which were standing on the way of petitioner’s factory
have been seized by the police and his factory has been sealed
without any authority of law. It has been submitted that
petitioner is suffering heavy loss on account of sealing of his
factory premises.
3(i). Learned counsel for the petitioner submits that
earlier petitioner filed CWJC No. 7204 of 2023 which was
disposed of by order dated 28.08.2023 (Annexure-P/7) directing
the competent authority to take note of the petitioner’s grievance
read with the Rule 12B of Bihar Prohibition and Excise
(Amendment) Rules, 2022 and proceed to pass an order within a
reasonable period of one week from the date of receipt of
petitioner’s application. Petitioner filed a representation before
the concerned authority on 16.09.2023 but no order was passed
on his representation. Thereafter petitioner filed another writ
petition before this Court vide CWJC No. 18349 of 2023, which
was later on permitted to be withdrawn on 22.01.2024
(Annexure-P/8) reserving liberty to the petitioner to invoke
appropriate remedy. In the meantime, petitioner had also filed
MJC No. 3009 of 2023 for non-compliance of the order dated
28.08.2023 (Annexure-P/7) passed in CWJC NO. 7204 of 2023.
During pendency of the said MJC, the District Magistrate
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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passed order on the representation of the petitioner. Accordingly,
the said MJC contempt petition was dropped by order dated
08.11.2023 (Annexure-P/9) reserving liberty to the petitioner to
assail the order dated 20.09.2023 in accordance with law.
3(ii). Learned counsel submits that petitioner applied
for certified copy of the order dated 20.09.2023 passed by the
District Magistrate but due to Corona certified copy has not
been issued by the Collector. Petitioner filed a writ application
bearing Token No. 2759 of 2024 assailing the order of the
Collector, however the same was withdrawn as the certified
copy of the order of Collector could not be made available for a
long time.
3(iii). It has been further submitted that apart from the
above proceedings, petitioner filed another writ petition vide
CWJC No. 8493 of 2023 for quashing of the order dated
21.04.2023 passed by Joint Secretary of Bihar, Industrial Area
Development Authority, Muzaffapur whereby allotment of land
to the petitioner has been cancelled, which was disposed of by
order dated 11.12.2023 (Annexure-P/10) and the impugned
order dated 21.04.2023 was set aside and the matter was
remanded back to the authority concerned for passing a fresh
order after giving an opportunity of hearing to the petitioner.
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3(iv). Learned counsel submits that the order dated
20.09.2023 (Annexure-P/1 to the I.A.) passed by the Collector
in Confiscation Case No. 299 of 2023-24 has been assailed by
way of filing I.A. No. 1 of 2025. It is submitted that the
Collector has rejected the application of the petitioner without
assigning any reason, and accordingly it has been prayed that
the said order may also be quashed. It has been submitted that
against the order dated 20.09.2023 passed by the Collector,
Muzaffarpur petitioner filed Excise Appeal No. 45 of 2024
before the Excise Commissioner, Department of Excise,
Secretariat, Bihar, Patna. The Excise Commissioner has rejected
the appeal filed by the petitioner by order dated 24.09.2024.
Learned counsel submitted that Collector, Muzaffapur has
rejected the claim of the petitioner for unsealing of the premises
which has been upheld by the Excise Commissioner and thereby
they have committed error in not granting the benefit of Rule
12B of Bihar Prohibition and Excise (Amendment) Rules, 2022
to the petitioner who is bona fide and innocent owner of the
premises in question. Petitioner having no other efficacious
remedy available to him, has filed the present writ application
for quashing of the orders passed by the Collector and the
Commissioner and also for unsealing of the petitioner’s factory
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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premises. Learned counsel submits that petitioner is ready to
deposit an amount of Rs. 5,00,000/- (Rupees Five Lakhs), in
five equal monthly installments, as penalty for release/unsealing
of the factory premises in question. Learned counsel has also
filed an undertaking in this regard on behalf of the petitioner.
4. Learned counsel for the State submits that there is
alleged recovery of 13731.840 liters illicit foreign liquor from
the vehicles parked in the premises of petitioner’s factory, and
accordingly, Bela P.S. Case No. 35 of 2023 was registered. It
has been submitted that petitioner has directly approached this
Court without availing the remedy of revision before the
concerned authority under section 93 of the Bihar Prohibition
and Excise Act and in the light of aforesaid fact the present writ
petition is not maintainable. Learned counsel submitted that the
order dated 24.09.2024 is passed by the Commissioner in Excise
Appeal No. 45 of 2024 affirming the order dated 20.09.2023
passed by the Collector, Muzaffarpur in Confiscation Case No.
299 of 2023-24 by which the application under Rule 12B of
Bihar Prohibitoin and Excise (Amendment) Rules, 2022 filed by
the petitioner to get his factory unsealed upon deposit of the
amount of fine, has been rejected. It is submitted that the orders
passed by the Collector and the Commissioner are justified and
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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legal as there is recovery of huge quantity of illicit foreign
liquor, and therefore, no interference is needed.
5. There has been amendment in the Bihar Prohibition
and Excise Rules, 2021 and a new Rule 12B has been inserted,
which reads as under :
“12B. Release of Premises on Payment of
Penalty:- (1) If any premises or part thereof
has been seized or sealed by any police or
excise officer under the Act, then in terms of
section-57B (2) of the Act, the Collector or an
officer authorized by him, upon receipt of an
application in Form V from the owner of the
said premises, may release or unseal the said
premises or part thereof upon payment of such
penalty as may be ordered by the Collector or
the officer authorized by him. Provided, where
it is not possible to ascertain the owner of the
premises or the owner is not coming forward,
the Collector or the officer authorized by him
shall, after waiting for 15 days from the date of
seizure/sealing, proceed to confiscate the
premises as per the provisions of the Act.
(2) The Collector or the
officer authorized by him shall have due
regard to the economic status of the individual,
nature of his involvement in the crime, location
of the premises and the quantum of intoxicant
recovered while deciding the quantum of fine
to be paid by the individual. However, the fine
shall not be less than Rs. one Lakh in any case.
In any case, the Collector shall not wait
beyond 15 days from the date of
seizure/sealing and if during this period, the
accused/owner does not pay up the penalty he
shall proceed with the confiscation/auction.
(3) Notwithstanding above, if
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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on a report by police officer or excise officer,
the Collector or the officer authorized by him
is satisfied that releasing the premises shall not
be in the public interest, the Collector or the
officer authorized by him shall proceed ahead
with the confiscation of the said premises or
part thereof and its subsequent
auction/disposal.
(4) Such penalty shall be,
regardless of the outcome of the trial if any,
before the Special Court, non-refundable.
(5) The owner of the
Premises shall, after the release of the
premises, allow the inspection of the premises
as and when desired by the authorities.”
6. From the analysis of the aforesaid statutory
provision, it is evident that there is provision for release/unsealing
of the premises on payment of penalty.
7. In the present case, from the factory premises
of the petitioner, illicit foreign liquor loaded on different vehicles
which were parked there was recovered and in the light of the
aforementioned statutory provisions, the premises can be
released/unsealed on payment of penalty.
8. It is pertinent to note here that petitioner had
approached this Court on several occasions and has also been
running from one authority to another seeking release/unsealing of
his factory premises. Petitioner has suffered a lot in pursuing his
grievance before different authorities. Furthermore, petitioner is
ready to deposit an amount of Rs. 5,00,000/- (Rupees Five Lakhs),
Patna High Court CWJC No.3596 of 2025 dt.31-07-2025
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in five equal monthly installments, as penalty for
release/unsealing of the factory/premises in question. In the
earlier writ petition (CWJC No. 7204 of 2023), petitioner was
permitted to place his grievance before the authority concerned
and the concerned authority was directed to consider his grievance
in the light of the provisions as contained in Rule 12B of the Bihar
Prohibition and Excise (Amendment) Rules, 2022 which provides
for release of premises on payment of penalty in favour of a
person who is said to have been accused of the offence of storage
of illicit liquor but the concerned authority has not taken into
account the aforesaid aspect.
7. Keeping in view the submissions advanced on
behalf of the parties, the relevant rule on the issue and the
discussions made above, the order dated 24.09.2023 passed by
the Excise Commissioner, Bihar, Patna in Excise Appeal No. 45 of
2024 as well as the order dated 20.09.2023 passed by the
Collector, Muzaffarpur in Confiscation Case No. 299 of 2023-24
are hereby modified insofar as imposition of penalty/fine.
8. On the basis of material available on record, we feel sealing
of factory/premises would be too harsh on the petitioner. Therefore,
petitioner is directed to pay a fine of Rs. 5,00,000/- (Rs. Five lakhs), as
agreed by him during the course of arguments, in five equal
monthly installments. On deposit of fine of Rs. 5,00,000/- (Rs.
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Five lakhs) in five equal monthly installments, the
factory/premises in question be unsealed. Certified copy of this
judgment shall be produced within two weeks before the Collector,
Muzaffarpur while paying a sum of Rs. 1,00,000/- (Rupees One
Lakh) as 1st installment, on such payment deseal subject premise,
if petitioner fails to pay remaining Rs. 4,00,000/- (Rupees Four
Lakhs) in four monthly installment, State is permitted to file
Interlocutory application to revive this order for re-sealing of
subject premise.
9. With the above observation/direction, the
present writ petition stands disposed of.
(P. B. Bajanthri, J)
( Alok Kumar Pandey, J)
mcverma/-
AFR/NAFR AFR CAV DATE 28.07.2025 Uploading Date 31.07.2025 Transmission Date NA
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