Bail Not Solely Dependent on Seriousness of Allegations, Rules Court .

Bail - Constitutional Law – Personal Liberty – Arrest – Necessity for justification – Arrest and detention in police lock-up causing harm to reputation and self-esteem – Arrest cannot be made in a routine manner on a mere allegation of offense – Justification required for arrest apart from the power to arrest – Arrest to be avoided if reasonable satisfaction as to the genuineness and bona fides of complaint and person’s complicity reached after investigation – Personal liberty being an important aspect of constitutional mandate. (Para 26.1)

Criminal Procedure – Remand – Application of mind by the court – Fundamentally a judicial function – Obligation on the Magistrate to satisfy himself of reasonable grounds for remand – Purpose of remand under Section 167 of CrPC – Investigating agency to send case diary with remand report for Magistrate’s appreciation – Remand not to be ordered automatically or in a mechanical manner. (Para 26.2)

 Interpretation of Statutes – Distinction between arrest and remand – Accused already under incarceration – No need for further arrest – Custody not limited to police or judicial custody but presentation before the court – Pari materia provision having same effect as Section 167(2) CrPC – Accused entitled to default bail under appropriate satisfaction – Incarceration meaning confinement in jail or preventing someone from leaving a closed place. (Para 26.3)

Companies Act – Twin-conditions for bail under Section 212(6) – Accused not arrested before stage of cognizance – Summons issued instead of arrest warrants – Investigating officer not seeking police custody or judicial custody – Failure to record satisfaction that accused is guilty of offenses charged – Misdirection by court in applying twin-conditions – Flawed premise for remanding accused to judicial custody. (Para 27.7)

Bail – Seriousness of allegations not sole test for denial of bail – Gravity of allegations determining length of sentence upon conviction – Accused’s right to expeditious trial not to be undermined – Pre-trial detention to be limited – Justifiable reasons required for remand and articulation based on material against accused. (Para 27.9)

Conditions for bail – Personal bond, sureties, and compliance with court orders – Active cell-phone contact, surrender of passport, non-contact with witnesses, and evidence tampering prohibition – Restriction from contact or transaction with officials/employees concerned with the case – Issuance of Look-out Circular to prevent accused from leaving the country. (Para 28)

Economic Offenses – Severity of allegations not justification for pre-trial incarceration – Punishment to follow conviction – Importance of ensuring due process and safeguarding personal liberty. (Para 30)

Date of Decision: July 19, 2023

SUMAN CHADHA versus SERIOUS FRAUD INVESTIGATION OFFICE