Procedure where no claimant appears within six months
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Summary
If no one proves a claim to property within six months and the possessor cannot show it was lawfully acquired, the Magistrate may order the property to be placed at the disposal of the State Government and sold. The State Government will deal with the sale proceeds according to its rules. An appeal lies to the court that normally hears appeals from the Magistrate.
Example
Ravi finds a locked chest of electronics left in his shop. No one claims it within six months and Ravi has no invoice or proof of purchase. The Magistrate may order the chest to be handed over to the State Government for sale, and the proceeds will be dealt with under State rules. Ravi can appeal that order to the usual court for Magistrate appeals.
Bare Act
Enacted text(1) If no person within such period establishes his claim to such property, and if the person in whose possession such property was found is unable to show that it was legally acquired by him, the Magistrate may by order direct that such property shall be at the disposal of the State Government and may be sold by that Government and the proceeds of such sale shall be dealt with in such manner as the State Government may, by rules, provide.
(2) An appeal shall lie against any such order to the Court to which appeals ordinarily lie from convictions by the Magistrate.
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