ITC LIMITED v. STATE OF KARNATAKA & ANR., 2025
It affirms that CrPC safeguards (like warrant, recording of reasons, witnesses) apply to search and seizure under non-criminal laws as well.
Judgement Details
Court
Supreme Court of India
Date of Decision
16 September 2025
Judges
Justice J.B. Pardiwala & Justice R. Mahadevan
Citation
Acts / Provisions
Facts of the Case
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The case arose from a search and seizure conducted without a warrant by authorities under the Legal Metrology Act, 2009 at a commercial warehouse of ITC Limited.
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Authorities seized 7,600 pre-packed Classmate notebooks alleging violation of Rule 24(a) of the 2011 Rules and Section 36(1) of the 2009 Act.
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ITC challenged the validity of the search and seizure, arguing that it was conducted without warrant, without recording reasons to believe, and without independent witnesses as mandated under CrPC and the Legal Metrology Act.
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The Division Bench of the High Court had upheld the seizure; however, a Single Judge had earlier ruled in ITC's favor.
Issues
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Whether search and seizure under special enactments like the Legal Metrology Act can be conducted without a warrant, and if so, what procedural safeguards are required?
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Whether the absence of recorded reasons, independent witnesses, and warrant vitiated the search and seizure?
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Whether an "inspection" can be treated as distinct from a "search", and if so, does it authorize seizure?
Judgement
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The Supreme Court held that any search under a special enactment without warrant must comply with Section 165 CrPC.
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The "reasons to believe" must be recorded in writing, must show application of mind, and must be based on credible information, not presumptions.
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The presence of two independent witnesses is mandatory during seizure. The use of the department's driver as a witness was in violation of law.
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In the absence of a valid search, the seizure too becomes illegal.
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The Court restored the Single Bench order, thereby quashing the seizure and all subsequent proceedings.
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The Division Bench's order upholding the seizure was set aside.
Held
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The Search and seizure were unlawful, as:
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No search warrant was obtained.
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No reasons to believe were recorded.
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No independent witnesses were present.
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Procedural safeguards under Section 15 of the Legal Metrology Act and Sections 100 & 165 CrPC were violated.
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Inspection alone does not permit seizure unless preconditions under law are met.
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Therefore, entire proceedings were vitiated and set aside.
Analysis
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The judgment reinforces the primacy of due process even in cases of regulatory violations under special statutes.
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It affirms that CrPC safeguards (like warrant, recording of reasons, witnesses) apply to search and seizure under non-criminal laws as well.
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The Court drew a clear distinction between “inspection” and “search”:
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Inspection = verification of compliance.
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Search = broader, invasive, and includes seizure thus requiring stricter safeguards.
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This case sets a precedent for industries subject to regulatory checks (e.g., FMCG, pharma, logistics) regarding how searches must be lawfully conducted.
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The ruling could curtail arbitrary enforcement actions by regulatory bodies and promote accountability.