Denial of Bail Must be Exception in Economic Offences: High Court Grants Bail in PACL Case

In a significant ruling, the Punjab and Haryana High Court today granted regular bail to Damanjot Singh, the petitioner involved in the PACL Limited forgery case. The judgement was pronounced by Hon’ble Mr. Justice Jasjit Singh Bedi, who underscored the principle that “denial of bail must be the exception rather than the rule” in cases of economic offences, echoing his views in the landmark Maninder Sharma case.

The case, registered under various sections of the IPC, including Sections 384, 406, 420, 465, 467, 468, 471, and 120-B, revolves around allegations of criminal conspiracy and forgery in the affairs of PACL Limited. The petitioner was accused of facilitating a fictitious meeting and fraudulently appointing directors to the company.

Justice Bedi, in his decision, highlighted the considerations for bail in economic offences, especially when the trial is likely to be prolonged and the accused has been in custody without examination of any of the 46 prosecution witnesses. The court also took into account that the allegations against Singh were primarily based on his relationship with his in-laws, who are central figures in the case.

Represented by Mr. R.S. Rai, Senior Advocate, along with Ms. Eknoor Kaur Sara and Mr. Nimish Chib, Advocate, the petitioner’s plea for bail was contested by Ms. Ramta K Chaudhary, DAG, Punjab, and Mr. A.P.S. Deol, Senior Advocate, representing the complainant.

In a detailed judgement, Justice Bedi also discussed the jurisdictional aspects and the role of the Serious Fraud Investigating Office (SFIO) in the context of alleged violations of the Companies Act, 2013.

The court imposed specific conditions for bail, including monthly appearances before the police station concerned and an affidavit submission stating non-involvement in any other case/crime. Additionally, the petitioner is required to deposit a Fixed Deposit Receipt (FDR) of Rs. 5,00,000 as a security measure.

Date of Decision: 30 November  2023

Damanjot Singh  VS The State of Punjab