DISPOSAL OF PROPERTY
CHAPTER XXXVI
497. Order for custody and disposal of property pending trial in certain cases
498. Order for disposal of property at conclusion of trial
499. Payment to innocent purchaser of money found on accused
500. Appeal against orders under Section 498 or Section 499
501. Destruction of libellous and other matter
502. Power to restore possession of immovable property
503. Procedure by police upon seizure of property
504. Procedure where no claimant appears within six months
505. Power to sell perishable property
CONTENTS
Chapter XXXVI: Disposal of Property – Basic Prelims Questions With Answers
Q1. Under Section 497, if property produced before a Criminal Court is subject to "speedy and natural decay," the Court may:
A) Wait until the end of the trial to decide
B) Order the property to be sold or otherwise disposed of immediately
C) Transfer the property to the State Archives
D) Hand it over to the nearest police station for safe-keeping
Q2. According to Section 497(2), when property is produced before a Magistrate, the Magistrate is mandated to:
A) Personally guard the property
B) Prepare a statement of the property containing its description
C) Immediately auction it to the highest bidder
D) Donate it to a local charity
Q3. Which modern technological requirement is introduced in Section 497(3) for property produced during a trial?
A) Mandatory GPS tagging
B) Taking of photographs and, if necessary, videography
C) Digital fingerprinting of the property
D) Cloud-based live tracking of the evidence
Q4. For what purpose can the photograph or videography taken under Section 497(3) be used?
A) Only for police internal records
B) As evidence in any inquiry, trial, or other proceeding under the Sanhita
C) For public auction advertisements
D) They cannot be used as evidence
Q5. Within what time frame must a Court pass an order for disposal/destruction of property after the statement and media (photos/videos) are prepared?
A) Seven days
B) Fourteen days
C) Thirty days
D) Sixty days
Q6. Under Section 498, a Court may order the disposal of property at the conclusion of a trial by:
A) Destruction or confiscation
B) Delivery to any person claiming to be entitled to possession
C) Either A or B
D) Only by sale through a District Collector
Q7. If a person is convicted of theft, and it is proved that an innocent purchaser bought the stolen property from him, the Court may order under Section 499 that:
A) The purchaser must return the property for free
B) Money found on the accused be used to repay the purchaser the price paid
C) The accused be sentenced to extra labour to pay the purchaser
D) The State Government compensate the purchaser
Q8. What is the time limit specified in Section 499 for the delivery of money to an innocent purchaser?
A) Within thirty days
B) Within three months
C) Within six months from the date of the order
D) There is no time limit
Q9. An appeal against an order passed under Section 498 or Section 499 lies to:
A) The High Court exclusively
B) The Court to which appeals ordinarily lie from sentences of that Court
C) The Supreme Court
D) The District Magistrate
Q10. Under Section 501, if a person is convicted of defamation, the Court may order the destruction of:
A) All property belonging to the accused
B) The libellous matter containing the defamatory statement
C) The accused's printing press
D) The original manuscript only
Q11. Section 502 empowers a Court to restore possession of immovable property to a person who was dispossessed by:
A) A civil dispute
B) Criminal force or show of force or criminal intimidation
C) Fraudulent contracts
D) Non-payment of rent
Q12. Within what period must a Trial Court pass an order for restoration of immovable property under Section 502?
A) At the time of conviction or within thirty days thereafter
B) Within sixty days of the dispossession
C) Only after the appeal period expires
D) Within six months of the conviction
Q13. (Case Law) According to Mahesh Dube v. Shivbodh, does the 30-day limitation for restoration of property under Section 502 apply to Appellate Courts?
A) Yes, it is a strict limit for all courts
B) No, it is not applicable in proceedings before appellate courts
C) Only if the High Court permits
D) Only in cases involving the State Government
Q14. According to Section 502(4), an order for restoration of immovable property:
A) Finalizes the title of the property
B) Prejudices the rights established in a civil suit
C) Shall NOT prejudice any right to such property which any person may establish in a civil suit
D) Bars any future civil litigation regarding the property
Q15. When a police officer seizes property that is not produced in Court, Section 503(1) requires them to report the seizure to:
A) The Superintendent of Police
B) The Magistrate
C) The District Collector
D) The Public Prosecutor
Q16. If the person entitled to seized property is unknown, the Magistrate shall issue a proclamation requiring claimants to establish their claim within __________ under Section 503(2).
A) Thirty days
B) Three months
C) Six months
D) One year
Q17. Under Section 504, if no claimant appears within six months of the proclamation, the property shall be at the disposal of:
A) The Police Department
B) The State Government
C) The Central Government
D) The Municipal Corporation
Q18. A Magistrate may sell property under Section 505 even if the owner is unknown if:
A) The property is subject to speedy and natural decay
B) The sale would be for the benefit of the owner
C) Both A and B
D) Neither A nor B; unknown property must be destroyed
Q19. (Case Law Note) In Teesta Atul Setalvad v. State of Gujarat, the term "any property" used in the seizure section (now 503) was interpreted to include:
A) Only tangible items
B) Bank accounts creating suspicion of a crime
C) Only vehicles used in a crime
D) Only weapons of offence
Q20. (Case Law Note) According to Nevada Properties (P) Ltd. v. State of Maharashtra, does a police officer's power to seize "any property" include the power to attach and seal immovable property?
A) Yes, it is an inherent power
B) No, it does not include the power to attach, seize, and seal immovable property
C) Only in cases of organized crime
D) Only with written permission from the Governor
Q21. When property is sold by a Magistrate because it is perishable (Section 497), the proceeds of the sale shall:
A) Be forfeited to the State
B) Be used to pay for the investigation
C) Abide the order of the Court
D) Be returned to the police officer
Q22. Under Section 503(3), if a Magistrate believes the person entitled to property is a first-time offender and the value is small, he may:
A) Forfeit the property immediately
B) Give custody to any person on a bond
C) Order community service instead of seizure
D) This section does not mention first-time offenders
Q23. If an Appellate Court reverses a conviction, what happens to the disposal order passed under Section 498?
A) It is automatically made final
B) The Court may direct it to be stayed
C) The property is destroyed immediately
D) The original Magistrate must be fined
Q24. Section 501 applies to destruction of libellous matter after conviction under which BNS sections?
A) Murder and dacoity
B) Sections 292, 293, 294, 295 or 356
C) Theft and robbery
D) Adulteration and trespass
Q25. If property is sold under Section 504 because no claimant established a right, the proceeds of such sale are:
A) Distributed among the victims
B) Retained by the Magistrate
C) Forfeited to the Government
D) Used to repair the Court building
Q26. For property produced in a trial, the videography mandated by BNSS should preferably be recorded on:
A) A professional film camera
B) A mobile phone or any other electronic media
C) A dedicated CCTV system
D) It must be live-streamed to the High Court
Q27. When property is delivered to an innocent purchaser under Section 499, it is conditional upon:
A) The purchaser joining the police force
B) The restitution of the stolen property to the person entitled to its possession
C) The accused pleading guilty
D) The value of property being less than
Q28. Under Section 503(1), if property is NOT produced before a Court but seized by police, the Magistrate can make orders respecting:
A) Disposal or delivery to the person entitled
B) Custody and production
C) Both A and B
D) Only its immediate destruction
Q29. According to Section 498(3), if a Court makes an order of disposal, the execution of that order may be stayed until:
A) The Magistrate retires
B) The period allowed for presenting an appeal has passed
C) The accused finds an advocate
D) The victim gives consent
Q30. Chapter XXXVI of the BNSS corresponds to which chapter of the old CrPC?
A) Chapter XXX
B) Chapter XXXIV
C) Chapter XXXVI
D) Chapter XL
Answer Key:
Q1 – B | Q2 – B | Q3 – B | Q4 – B | Q5 – C
Q6 – C | Q7 – B | Q8 – C | Q9 – B | Q10 – B
Q11 – B | Q12 – A | Q13 – B | Q14 – C | Q15 – B
Q16 – C | Q17 – B | Q18 – C | Q19 – B | Q20 – B
Q21 – C | Q22 – B | Q23 – B | Q24 – B | Q25 – C
Q26 – B | Q27 – B | Q28 – C | Q29 – B | Q30 – C
Chapter XXXVI – Disposal of Property (Practice Questions With Answers)
Q1. Consider the following statements regarding property produced before a Court pending trial:
Statement I: If the property is subject to speedy and natural decay, the Court may order it to be sold or otherwise disposed of after recording necessary evidence.
Statement II: The proceeds of such a sale shall be immediately forfeited to the State Government.
A) Only Statement I is correct
B) Only Statement II is correct
C) Both Statement I and II are correct
D) Neither Statement I nor II is correct
Q2. Regarding the new technological mandates under Chapter XXXVI:
Statement I: The Court or Magistrate shall cause photographs and, if necessary, videography on a mobile phone or electronic media to be taken of property produced before it.
Statement II: Such photographs or videography are for administrative record-keeping only and cannot be used as evidence in the trial.
A) Only Statement I is correct
B) Only Statement II is correct
C) Both Statement I and II are correct
D) Neither Statement I nor II is correct
Q3. Problem: A Magistrate prepares a descriptive statement and takes videography of seized property on June 1st. By what date must the Court pass an order for the disposal, destruction, or delivery of said property?
A) June 7th
B) June 15th
C) July 1st
D) August 30th
Q4. Evaluate the following statements regarding the conclusion of a trial:
Statement I: The Court may order the disposal of property by destruction, confiscation, or delivery to a person claiming to be entitled to possession.
Statement II: An order of disposal at the conclusion of a trial shall never be carried out until any pending appeal is disposed of, regardless of the nature of the property.
A) Only Statement I is correct
B) Only Statement II is correct
C) Both Statement I and II are correct
D) Neither Statement I nor II is correct
Q5. Problem: “A” is convicted of theft. “B” is an innocent purchaser who bought the stolen watch from “A” without knowing it was stolen. Money was found on “A” at the time of arrest. Which of the following is correct?
A) The Court must return the watch to “B”.
B) The Court may order that “B” be repaid the purchase price out of the money found on “A”, provided the watch is restored to its rightful owner.
C) The State must compensate “B” directly from the Victim Compensation Scheme.
D) “B” has no remedy under the Sanhita and must file a civil suit.
Q6. Regarding the timeline for payment to an innocent purchaser:
Statement: The money ordered to be paid to the innocent purchaser must be delivered to him within six months from the date of the order.
A) True
B) False, it must be paid within thirty days
C) True, but only if the High Court confirms the order
D) False, there is no specific timeline in the Sanhita
Q7. Problem: A person is aggrieved by a Magistrate’s order regarding the disposal of property. To which forum does the appeal lie?
A) Only to the High Court
B) To the Court to which appeals ordinarily lie from sentences of that Magistrate
C) To the District Collector
D) To the Supreme Court
Q8. Consider the destruction of libellous matter:
Statement I: Upon a conviction for defamation, the Court may order the destruction of all copies of the libellous matter in the possession of the convicted person.
Statement II: This power of destruction also extends to food or drugs in convictions relating to adulteration.
A) Only Statement I is correct
B) Only Statement II is correct
C) Both Statement I and II are correct
D) Neither Statement I nor II is correct
Q9. Problem: “X” is convicted of using criminal force to dispossess “Y” of his house. The Trial Court wishes to restore possession to “Y”. Which of the following is correct?
A) The Court must wait for “Y” to file a civil suit for possession.
B) The Court may order “Y” to be restored to possession at the time of conviction or within thirty days thereafter.
C) Restoration can only be ordered if the property value is less than one lakh rupees.
D) The Court has no power to restore immovable property.
Q10. Evaluate the following statements regarding the restoration of immovable property:
Statement I: An order for restoration can be made by an Appellate or Revisional Court while exercising its powers.
Statement II: A restoration order passed under this chapter is final and bars any future civil suits regarding the property.
A) Only Statement I is correct
B) Only Statement II is correct
C) Both Statement I and II are correct
D) Neither Statement I nor II is correct
Q11. Problem: A police officer seizes a car suspected to be stolen but the matter is not yet before a Criminal Court. What is the procedure?
A) The officer must sell the car immediately.
B) The officer must report the seizure to the Magistrate having jurisdiction.
C) The officer must keep the car at the police station until the trial ends.
D) The officer must return the car to the person it was taken from without any conditions.
Q12. Regarding unknown owners of seized property:
Statement: If the person entitled to the property is unknown, the Magistrate shall issue a proclamation requiring any claimant to establish their claim within six months.
A) True
B) False, the timeline is three months
C) True, but only if the property is valued over fifty thousand rupees
D) False, unknown property is immediately forfeited to the State
Q13. Situation: No one appears to claim seized property within six months of a proclamation. Which consequence is correct?
A) The property shall be returned to the police officer who seized it.
B) The Magistrate may order the property to be at the disposal of the State Government and sold.
C) The property must be donated to a registered NGO.
D) The property must be kept in the Court locker for a minimum of five years.
Q14. Evaluate the following statement regarding the sale of perishable property:
Statement: If the person entitled to seized property is unknown or absent and the property is subject to speedy and natural decay, the Magistrate may sell it at any time if it is for the benefit of the owner.
A) True
B) False, the Magistrate must wait for the six-month proclamation period
C) True, but only with the consent of the Public Prosecutor
D) False, only the High Court can authorize such a sale
Q15. Based on judicial interpretations cited in the Sanhita notes, which of the following is correct regarding seizure?
A) “Any property” in the seizure section refers only to physical goods.
B) “Any property” includes bank accounts creating suspicion about the commission of an offence.
C) Bank accounts can only be seized if they belong to the accused.
D) Police have no power to freeze bank accounts under the Sanhita.
Q16. Based on judicial rulings regarding the power to seize property:
A) A police officer has the power to seize and seal immovable property under the general seizure provision.
B) A police officer’s power to seize “any property” does NOT include the power to attach, seize, and seal immovable property.
C) Only the CBI has the power to seize immovable property.
D) Immovable property can be seized if it was purchased with stolen money.
Q17. Consider the status of sale proceeds when property is sold pending trial because it is perishable:
Statement: When property is sold because it is subject to speedy decay pending trial, the proceeds of the sale shall abide the final order of the Court.
A) True
B) False, proceeds are used to pay Court costs immediately
C) True, but only if the amount exceeds ten thousand rupees
D) False, proceeds are returned to the accused until the trial ends
Q18. Problem: A Trial Court refuses to deliver property at the conclusion of a trial. Can an Appellate Court stay that refusal order?
A) No, only the High Court can stay disposal orders.
B) Yes, the Appellate Court may direct the order to be stayed on such terms as it thinks fit.
C) No, disposal orders are executed immediately regardless of appeal.
D) Only if the accused deposits the full value of the property in Court.
Q19. When a Magistrate finds that seized property cannot be conveniently transported to Court, he may:
A) Order it to be destroyed on the spot.
B) Give custody to any person on their executing a bond to produce the property as required.
C) Abandon the seizure.
D) Charge the accused for the cost of transport.
Q20. Regarding the value of property as a ground for sale by a Magistrate when the owner is unknown:
Statement: A Magistrate may sell property if the owner is unknown and the value is less than ten thousand rupees.
A) True
B) False, the value must be less than one thousand rupees
C) True, but only if it has been in custody for one year
D) False, value is not a ground for sale, only decay is
Answer Key
Q1 – A
Q2 – A
Q3 – C
Q4 – A
Q5 – B
Q6 – A
Q7 – B
Q8 – C
Q9 – B
Q10 – A
Q11 – B
Q12 – A
Q13 – B
Q14 – A
Q15 – B
Q16 – B
Q17 – A
Q18 – B
Q19 – B
Q20 – A
BNSS/CrPC
One-Line Revision Reckoner for Chapter XXXVI
This "Disposal of Property Master-Sheet" provides a quick ready reckoner for Chapter XXXVI (Sections 497–505) of the BNSS, 2023. This chapter outlines the protocols for the custody, sale, and final restoration of property involved in criminal proceedings.
1. Property Pending Trial (Section 497)
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Custody and Sale: The Court or Magistrate makes orders for the proper custody of property produced during any investigation, inquiry, or trial.
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Perishable Items: If the property is subject to speedy and natural decay, the Court may order it to be sold or otherwise disposed of after recording necessary evidence.
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Mandatory BNSS Timelines:
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Descriptive Statement: Within fourteen days of the property being produced, the Court must prepare a statement containing its description.
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Digital Evidence: The Court shall cause photographs and, if necessary, videography (on a mobile phone or electronic media) to be taken of the property.
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Final Order: Within thirty days of preparing the statement and media, the Court must pass an order for the disposal, destruction, confiscation, or delivery of the property.
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Evidentiary Value: The prepared statement and the digital media (photos/videos) are admissible as evidence in any subsequent inquiry or trial.
2. Disposal at Conclusion of Trial (Sections 498–500)
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General Rule (S. 498): Upon conclusion of a case, the Court may order the disposal of property by destruction, confiscation, or delivery to the person entitled to possession.
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Innocent Purchasers (S. 499): If a person is convicted of theft/receiving stolen property and an innocent purchaser has already paid for it:
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The property is restored to the rightful owner.
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The Court may order that the purchaser be repaid the price out of money found on the accused at the time of arrest.
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This payment must be delivered to the purchaser within six months of the order.
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Appeals (S. 500): Any person aggrieved by an order under Section 498 or 499 may appeal to the Court to which appeals ordinarily lie from sentences of that Court.
3. Special Categories: Libel and Immovable Property (Sections 501–502)
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Libellous Matter (S. 501): Upon conviction for certain offences (like defamation), the Court may order the destruction of all copies of the libellous matter in the possession of the convicted person.
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Restoration of Land/Buildings (S. 502):
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If a person is dispossessed of immovable property by criminal force or intimidation, the Court may order its restoration.
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This order must be made at the time of conviction or within thirty days thereafter.
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Note: This order does not prejudice any rights established in a civil suit.
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4. Police Seizure and Unknown Owners (Sections 503–505)
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Reporting Seizure: When police seize property not produced in Court, they must report it to a Magistrate.
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Unknown Owners: If the person entitled to the property is unknown, the Magistrate shall issue a proclamationdescribing the articles.
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Establishment of Claim: Claimants have six months from the date of the proclamation to establish their right.
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Forfeiture: If no claimant appears within six months, the property is at the disposal of the State Government and may be sold.
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Perishable Sales (S. 505): A Magistrate may sell unknown/absent owner property at any time if it is subject to speedy decay or if its value is less than ten thousand rupees.
Quick Revision Tip:
"The 14/30 Rule" Under Section 497, the new Sanhita imposes a strict timeline: you have 14 daysto document the property (statement/photos/videos) and 30 days thereafter to pass the final disposal order. This is a major efficiency update from the old Code.