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2021 (11) TMI 334 - HC - GSTGrant of Default Bail - seeking to set aside/modify stringent conditions imposed by the learned Chief Judicial Magistrate, Ludhiana - complaint under Section 132(1)(b)(c) and (I) punishable under Section 132(1)(i) of the CGST Act, 2017 - HELD THAT - The right to default bail arises when the investigating agency is not able to complete the investigation and put up the challan within the stipulated period, as the case may be. As has been held in catena of judgments by the Hon ble Apex Court as also this Court, such a right is an indefeasible right. The accused, thus, does derive such a benefit due to the failure on the part of the investigating agency/prosecution. Such right having been recognized as a Fundamental Right in a plethora of judgments, cannot be equated with the discretionary right of the Court, wherein the Court in its discretion may impose any condition, as may be deemed fit so as to enlarge the accused on bail. The Hon ble Apex Court in Saravanan s case 2020 (10) TMI 1249 - SUPREME COURT , has held that default bail under Section 167(2) Cr.P.C. is an indefeasible right and no condition of deposit of the alleged amount involved in the alleged crime can be imposed by the Court while granting default bail/statutory bail to the accused. The default bail under Section 167(2) Cr.P.C. cannot be equated with the discretion of the Court under Sections 437, 438 or 439 Cr.P.C., wherein the Court has got ample power to impose any condition as would be deemed fit on the facts and in the circumstances of the case. The indefeasible right under Section 167(2) Cr.P.C., accrued due to the failure on the part of the investigating agency to complete the investigation and present the challan within the stipulated period would, therefore, be a right free from any inhibition or embargo. This Court is of the view that the conditions of deposit of Rupees One crore with two sureties in the like amount (atleast one local) and furnishing of bank guarantee /FDR for an amount of ₹ 50 lakh to be forfeited to the State in case of violation of any of the terms and conditions of the order, as contained in the order passed by the Chief Judicial Magistrate, Ludhiana, are set aside - Petition allowed.
Issues:
Setting aside of stringent conditions imposed while granting default bail under Section 167(2) Cr.P.C. Analysis: The petitioner sought setting aside of stringent conditions imposed by the Chief Judicial Magistrate while granting default bail. The petitioner was accused under the CGST Act, 2017. The trial Court allowed the default bail application, but imposed conditions including furnishing bail bonds of Rs. One crore with two sureties and a bank guarantee/FDR of Rs. 50 lakh. The petitioner challenged these conditions in a revision petition, which was dismissed by the Additional Sessions Judge. The petitioner argued that imposition of such conditions was illegal and not in line with the statutory provisions governing default bail under Section 167(2) Cr.P.C. The petitioner cited various judgments to support the argument that default bail is an indefeasible right and cannot be subject to onerous conditions. The respondent contended that the trial Court was within its rights to impose conditions while granting default bail, especially in cases involving economic offences and fraud against the State exchequer. Referring to similar cases, the respondent argued that the present petition should be dismissed. The Court noted that default bail arises when the investigating agency fails to complete the investigation within the stipulated period, granting the accused an indefeasible right. Citing the judgment in Saravanan's case, the Court emphasized that no condition of depositing the alleged amount involved in the crime can be imposed while granting default bail. The Court held that default bail is a statutory right, distinct from the discretionary powers of the Court under other provisions like Sections 437, 438, or 439 Cr.P.C. Based on the legal principles established in Saravanan's case, the Court set aside the stringent conditions imposed by the Chief Judicial Magistrate, including the requirement of furnishing bail bonds of Rs. One crore and a bank guarantee/FDR of Rs. 50 lakh. The Court modified the order to allow the petitioner's release on default bail, subject to furnishing bail/surety bonds to the satisfaction of the trial Court. The remaining conditions were to remain intact, ensuring compliance with the order while upholding the petitioner's right to default bail under Section 167(2) Cr.P.C.
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