Anticipatory Bail – Sections 305, 331(3), 331(4), 3(5) of the Bharatiya Nyaya Sanhita, 2023 (BNS) - Civil Dispute with Criminal Colour – Prima Facie Civil Nature – Bail Granted - The applicant sought pre-arrest bail in connection with an FIR alleging theft and criminal intimidation – Held: The dispute pertained to possession of a shop already sub judice in civil courts with pending suits and earlier judicial findings confirming the applicant’s possession under a consent deed – Court found that the FIR reflected a civil dispute being given criminal colour – Bail granted subject to conditions [Paras 2–4, 7–9].

Possession of Property – Civil Court Findings – No Prima Facie Criminal Offence – Bail Allowed - Applicant relied on findings in RCS No. 27/2022 where the Civil Court had observed that the shop was in his possession under a registered agreement and consent deed – Held: The allegations of theft cannot prima facie sustain when possession of the accused is recognised by court orders – Ingredients of criminal offences under BNS not attracted at this stage – Custodial interrogation not warranted [Paras 4, 7–9].

Criminal Antecedents – Must be Judged in Context – Clean Acquittal and Bail Orders Considered – Not a Bar to Bail - The prosecution cited four prior FIRs – Held: The Court considered the applicant’s acquittal in one case and bail orders in another, affirming that antecedents must be assessed case-wise and are not a bar to anticipatory bail where a prima facie case is made out [Para 8].

Recovery – Partial Recovery Made – Bail Not Denied for Remaining Property - Of the ₹27 lakh worth items alleged stolen, ₹15 lakh had already been recovered – Held: Partial recovery supported the applicant’s claim that theft allegations were exaggerated in a civil dispute context – No need for custodial interrogation solely for recovery purposes [Para 9].

Decision – Bail Granted with Conditions – Anticipatory Bail Application Allowed - Applicant directed to be released on furnishing bond, with directions to cooperate with investigation, attend police station weekly, and not tamper with evidence or influence witnesses – Bail granted in view of prima facie civil nature of the dispute and pending litigation [Paras 9–10].

Bail in Money Laundering Case – Twin Conditions Under Section 45 PMLA – Bail Granted – Petitioner, former bank president, arrested in connection with ECIR/BGO/05/2021 for offence under Section 4 PMLA – Court considered that trial was unlikely to commence soon, complaint had been filed, and proceedings in predicate offences were either stayed or not yet cognized – Held: Requirements under Section 45 PMLA not an absolute bar, bail can be granted based on foundational facts, absence of strong evidence, and petitioner’s age and medical condition [Paras 1, 4, 22, 27–28].

Predicate Offences – FIR Quashed and Cognizance Not Taken – Impact on PMLA Proceedings – Court noted that FIR in Crime No.16/2021 was quashed and that petitioner was not originally charge-sheeted in Crime No.325/2014 – Additional charge sheet filed without invoking scheduled offences and cognizance yet to be taken – Held: Absence of valid foundational proceedings for scheduled offences undermines the money laundering prosecution [Paras 3, 15–17, 20].

Presumption Under Section 24 PMLA – Foundational Facts Must Be Established – Burden Not Yet Shifted – Prosecution relied on confessions of co-accused, but no independent evidence presented – Citing Prem Prakash and Vijay Madanlal Choudhary, Court held presumption under Section 24 arises only when foundational facts are made out – Held: In absence of admissible material, petitioner not required to rebut presumption [Paras 7, 14, 24–25].

Confession of Co-Accused – Not Substantive Evidence – Cannot Alone Justify Custody – Petitioner’s alleged involvement was based on confessional statements of co-accused in predicate cases – Relying on Prem Prakash and P. Krishna Mohan Reddy, Court held such confessions are not substantive evidence and cannot be sole basis to deny bail [Paras 24–25].

Delay in Trial – Long Custody and Health Grounds – Bail Justified – Petitioner in custody since April 2025 and undergoing medical treatment including advised cataract surgery – Considering health condition, age, and delay in trial, Court found continued detention unjustified – Bail granted with conditions ensuring trial attendance and non-interference [Paras 27–28].

Negotiable Instruments Act – Section 141 – Vicarious Liability of Partner – Not Maintainable Without Firm's Conviction – Appellant sought conviction of accused partner under Section 138 read with Section 141 N.I. Act – Complaint alleged cheque issued by partner on behalf of firm – Firm (accused no.1) was acquitted and no appeal was preferred – Held: Once principal offender (firm) is acquitted and acquittal has attained finality, vicarious liability of partner does not survive – Conviction rightly set aside [Paras 6, 11–13].

Vicarious Liability – Firm Acquitted – No Personal Liability Established – Accused no.2 signed cheque on behalf of partnership firm – Complaint and evidence did not show that the cheque was issued in personal capacity – No separate legal liability pleaded or proved against accused no.2 – Held: Partner cannot be held liable in absence of firm’s guilt and absence of individual obligation [Paras 8–9, 13].

Binding Precedent – Applicability of Aneeta Hada v. Godfather Travels – Apex Court Overruled Anil Hada – Held Firm Must Be Arraigned and Convicted – Appellate Court relied on three-judge bench decision of Supreme Court in Aneeta Hada v. Godfather Travels (2012) 5 SCC 661 – High Court upheld the ratio: no vicarious liability arises unless company or firm is found guilty – No illegality or perversity found in acquittal [Paras 6, 11–12].

Acquittal – Appeal Against – Presumption of Innocence – No Interference Unless Perversity Found – High Court reiterated that in appeal against acquittal, interference is warranted only when order is perverse or illegal – Appellate Court’s view based on settled law and facts – No compelling reason to interfere with acquittal of respondent [Paras 15–17].

Decision – Appeal Dismissed – Conviction Rightly Reversed – Trial Court convicted partner without proving firm’s offence – Appellate Court corrected this legal error and acquitted – High Court upheld acquittal of accused partner Sujeet Kumar Jaiswal – Held: No illegality, appeal dismissed [Paras 15–17].

Criminal Law - Probation – Benefit of Probation of Offenders Act – Sentence Modified – Conviction Upheld – Petitioner convicted under Sections 279 and 337 IPC and sentenced to 3 months rigorous imprisonment – Petitioner already underwent 1 month and 26 days of sentence – High Court while upholding the conviction granted benefit of probation for good conduct – Held: In view of no criminal antecedents and short sentence, release on probation appropriate under Sections 3 & 4 of the Probation of Offenders Act, 1958 [Paras 1–2, 10–11].

Sentencing – Principles of Reformative Justice – Emphasis on Rehabilitation – Referring to Som Dutt v. State of HP, (2022) 6 SCC 722 and Lakhvir Singh v. State of Punjab, (2021) 2 SCC 763 – Court reiterated the growing importance of reformation over punishment – First-time offenders should be provided a chance to reform rather than be exposed to hardened criminals [Paras 6–8].

Probation – Scope and Overriding Effect – Section 4 of Probation of Offenders Act – Supreme Court in Lakhanlal v. State of MP, (2021) 6 SCC 100, held that the provisions of the 1958 Act have overriding effect – Section 360 CrPC applies additionally but not to the exclusion of the Probation of Offenders Act – Trial courts must consider probation where applicable [Paras 8–9].

Conviction and Service Benefits – Effect of Probation – Section 12 of the Probation of Offenders Act – Court clarified that conviction and sentence would not act as a bar to petitioner’s retiral or service benefits – Judgment shall not be treated as stigma in employment context [Para 12].

Criminal Revision – Conviction under Section 411 IPC – Sentence Modified – Petitioner convicted for offence under Section 411 IPC and sentenced to 1-year rigorous imprisonment with fine – Having undergone 3 months and 12 days of imprisonment, he sought modification of sentence – High Court upheld conviction but reduced sentence to already undergone period – Held: No minimum sentence prescribed under Section 411 IPC; sentence modified considering proportionality, length of trial (22 years), and scope for reformation [Paras 1–2, 5, 10].

Sentencing Principles – Discretion and Proportionality – No Minimum Punishment under Section 411 IPC – The Court emphasized that sentencing is not a mechanical exercise but requires judicial discretion based on circumstances – Referred to Deo Narain Mandal v. State of UP, (2004) 7 SCC 257 – Held: Discretion must be exercised keeping gravity of offence, age, and reformation prospects in view [Para 6].

Reformation and Deterrence – Balanced Sentencing – Citing Ravada Sasikala v. State of AP, AIR 2017 SC 1166, the Court stressed that sentencing should strike a balance between deterrence and reformation – The petitioner, having faced trial for over two decades and shown good conduct, merited leniency – Sentence of 1 year reduced to 3 months and 12 days already undergone [Paras 7, 9–10].

Conviction Unchallenged – Only Sentence Disputed – Counsel for the petitioner did not challenge conviction on merits – Judgment of conviction upheld as well-reasoned and based on correct appreciation of evidence – Only sentence was modified [Paras 3, 8].

Cheque Dishonour – 138 of the NI Act - Presumption under Negotiable Instruments Act – Rebuttal of Presumption – Acquittal Upheld – The complainant alleged loan transaction and issuance of cheque in discharge of debt – Accused produced evidence (Ex.D4) obtained under RTI showing operation of unregistered finance business by complainant, which was denied by complainant – Trial Court disbelieved complainant’s version and acquitted accused – Held: In appeal against acquittal, unless findings are perverse, interference unwarranted – In this case, complainant’s suppression of material facts and failure to produce promissory note weakened prosecution – Acquittal upheld as trial Court’s reasoning found just and based on evidence [Paras 4, 8-10].

Presumption under Section 139 of Negotiable Instruments Act – Rebutted by Preponderance of Probability – The presumption of debt under Section 139 stands rebutted where the accused demonstrates, through credible defence, that cheque was issued as security and not in discharge of legally enforceable debt – Total denial of finance business by complainant, despite contrary evidence, erodes the credibility of prosecution – No perverse approach by trial Court in accepting defence version [Paras 8-9].

Promissory Note Non-Production – Adverse Inference – Complainant claimed execution of promissory note for loan with interest but failed to produce the same during trial – Held: Non-production of primary documentary evidence critical to the loan claim further weakens prosecution case – Trial Court rightly considered this lapse in assessing complainant’s credibility [Paras 9].

Appeal Against Acquittal – Interference Principles Reiterated – The High Court reiterated well-settled principle that appellate Court should not interfere with acquittal unless findings are unreasonable, illegal, or perverse – Findings based on appreciation of evidence, cross-examination, and defence material – No grounds for reversal of acquittal [Paras 8-10].

Decision of the Judgment – Appeal dismissed, acquittal confirmed – Trial Court’s order acquitting accused in cheque bounce case upheld – Appeal devoid of merit [Para 10].

Civil Law – Section 55 of the T.P. Act - Recovery of Sale Consideration – Sale Agreement vs. Sale Deeds – Appeal Dismissed – Plaintiff filed suit claiming balance consideration of ₹1.16 crores alleging that only ₹16 lakhs was paid under a sale agreement – Held: Plaintiff cannot rely on earlier agreement to contradict terms of registered sale deeds; as per Section 92 of Evidence Act, oral or documentary evidence varying contents of registered documents is inadmissible – Sale consideration under sale deeds found to be fully paid – No unpaid amount recoverable – Suit and appeal rightly dismissed [Paras 2, 6, 11, 16, 18].

Encumbrances – Interpretation of Contract – Sale Was Free of Liabilities – Plaintiff argued that liabilities were to be cleared by purchaser in addition to agreed price – Held: Sale was intended to be free of encumbrances and liabilities were to be cleared from sale price – Conduct of parties and security given by plaintiff corroborated this understanding – Vendee had no independent liability to clear dues beyond consideration [Paras 13-15].

Evidence – Proof of Payment – Bank Transactions and Official Documents Sufficient – Defendants produced proof of payments including bank receipts, tax clearances, and PF dues – Plaintiff admitted major heads of liability – Trial court rightly concluded that total consideration was discharged and no dues remained – Challenge to receipts rejected due to lack of cross-examination or contrary proof [Para 16].

Limitation and Conduct – Delay in Legal Action – Plaintiff executed cancellation deeds in 1993 but never sought to set aside the sale deeds – Suit filed 8 years later – Held: Delay and lack of appropriate relief further weaken plaintiff’s claim – Findings of trial court affirmed [Para 17].

Decision – Appeal Dismissed – Suit for recovery of unpaid sale consideration based on pre-sale agreement was legally unsustainable – No dues shown under registered deeds – Appeal found to be without merit and dismissed without costs [Para 18].

Writ Petition under Article 226 – Constitutionality of Phone Tapping Order – Right to Privacy – Order Quashed – The petitioner challenged an order issued under Section 5(2) of the Indian Telegraph Act, 1885 authorising interception of his mobile phone in a corruption investigation – The Court held that the order failed to satisfy the threshold of “public emergency” or “public safety” as laid down by the Supreme Court in PUCL and affirmed in K.S. Puttaswamy – The order was found to be mechanical and lacked application of mind – Further, mandatory procedural safeguards under Rule 419-A, including review by the Review Committee, were not followed – Held: The interception violated the petitioner’s fundamental right to privacy under Article 21 – The order dated 12.08.2011 was declared unconstitutional, ultra vires Section 5(2) and Rule 419-A – The intercepted material was directed not to be used for any purpose – Writ petition allowed [Paras 1-97].

Right to Privacy – Constitutionality of Interception – Section 5(2) of Telegraph Act – Procedure Not Followed – Held Invalid – Held: Interception order infringed Article 21 – The threshold conditions under Section 5(2) such as “public emergency” or “interest of public safety” were not met – Such conditions must be evident to a reasonable person and cannot be secretive – Absence of these conditions renders the order without jurisdiction [Paras 33-34, 41-44, 67].

Interpretation of Public Emergency and Public Safety – Covert Surveillance Not Included – Held: Covert surveillance in criminal investigations does not amount to a “public emergency” or impact “public safety” as interpreted in PUCL and reaffirmed in K.S. Puttaswamy (Aadhaar-5J) and Anuradha Bhasin – An attempt to expand these terms by executive argument was rejected – Scope must be interpreted narrowly in favour of fundamental rights [Paras 40, 49-54, 62-64].

Procedural Safeguards – Rule 419-A Mandatory – Review Committee Not Involved – Interception Held Illegal – Held: Review Committee mechanism under Rule 419-A(17) is mandatory – The intercepted material was not placed before the Review Committee – Non-compliance with this mandatory requirement rendered the entire interception void and in breach of law [Paras 69-77, 86].

Admissibility of Evidence – Illegally Intercepted Conversations Inadmissible – Doctrine of Fruit of Poisonous Tree Revisited – Held: Evidence collected through unconstitutional phone tapping cannot be used for any purpose – Earlier precedents (Pooran Mal, R.M. Malkani) interpreted prior to recognition of privacy under Article 21 in K.S. Puttaswamy are not applicable – Illegality of interception vitiates the entire process – Evidence excluded [Paras 87-96].

Final Decision – Interception Order Quashed – Evidence Declared Inadmissible – Writ Allowed – The Court held that the order dated 12.08.2011 was unconstitutional, ultra vires and in violation of Rule 419-A – Directed that the intercepted conversations be excluded entirely – However, clarified that independent material collected by the CBI may be used before the Trial Court on merits [Para 97].

Family Law – Sections 9 and 13 of the Hindu Marriage Act, 1955 (HMA) - Divorce on Ground of Adultery and Desertion – Evidence Held Insufficient – Divorce Denied – The appellant alleged that his wife established an illicit relationship with another man and deserted the matrimonial home, and sought divorce on these grounds – The Family Court dismissed the suit for lack of cogent and independent evidence – The High Court affirmed the finding, observing that all witnesses were interested family members and no independent proof or FIR substantiated the allegations – Held: The charges of adultery and desertion were not proved by credible evidence, and the appellant failed to establish grounds for divorce [Paras 6, 13–17].

Family Law – Standard of Proof for Adultery – Allegations Must Be Supported by Independent Evidence – The Court held that allegations of adultery require strict proof, including voluntary sexual relations outside marriage – In the present case, the appellant relied only on oral testimonies of close relatives and failed to present any third-party or documentary corroboration – Held: Appellant failed to meet the required legal standard to prove adultery – Divorce rightly denied [Paras 12–14].

Appellate Jurisdiction – Interference with Findings of Fact – Scope of Appellate Review – The High Court referred to the principles laid down by the Supreme Court in Jagdish Singh v. Madhuri Devi and held that although an appellate court can reappreciate evidence, it must exercise restraint and not disturb findings based on oral evidence unless clearly perverse – Held: The Family Court's assessment of witness credibility and evidence was reasonable – No interference warranted [Para 15].

Decision – Divorce Appeal Dismissed – The High Court found no merit in the appeal and upheld the Trial Court's dismissal of the matrimonial case – Allegations found to be unsubstantiated and motivated – Divorce not granted [Paras 17–19].