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2021 (11) TMI 334 - HC - GST


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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