A judge has criticised Lancashire Constabulary after £36,000 was confiscated from a man the force believed had accrued the cash through crime.
In a written judgement, released at Blackpool Magistrates' Court on Thursday, Judge Paul Firth also ordered the force to pay Mushtaq David Anthony Ahmed a further £34,000 in costs.
The judge said the force had "abused and manipulated the court process" by applying to permanently retain the cash under the Proceeds of Crime Act, which was made law in 2002.
The force made the application while an investigation continued, following the seizure of the cash from Mr Ahmed, of Burnley.
He appealed to the court over the application to get the money back, following its confiscation in January this year.
A police spokeswoman said the force was lodging an appeal against the judge's ruling.
She told BBC News Online: "This is clearly a new and complex area of legislation and Lancashire Constabulary has been at the forefront of its inception.
"It would be inappropriate for us to make further comment at this time as the decision is being taken to appeal at a higher court."