Payment to innocent purchaser of money found on accused
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Summary
When someone is convicted of theft or receiving stolen goods and an innocent buyer bought the items without knowing they were stolen, the buyer can apply to court for compensation. If money was taken from the convicted person on arrest and the stolen property is returned to its rightful owner, the court may order payment out of that seized money. The sum ordered cannot exceed the price the buyer paid.
Example
Priya buys a used bicycle from Aditya, not knowing it was stolen. Aditya is later arrested and police seize cash from him. After the bicycle is returned to its owner, the court orders that up to the price Priya paid be released to her from the seized cash.
Bare Act
Enacted textWhen any person is convicted of any offence which includes, or amounts to, theft or receiving stolen property, and it is proved that any other person bought the stolen property from him without knowing or having reason to believe that the same was stolen, and that any money has on his arrest been taken out of the possession of the convicted person, the Court may, on me application of such purchaser and on the restitution of the stolen property to the person entitled to the possession thereof, order that out of such money a sum not exceeding the price paid by such purchaser be delivered to him.
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