The division Bench of Justice M.R. Shah and Justice C.T. Ravikumar of the Apex court in the case of The State Through Central Bureau of Investigation Vs T. Gangi Reddy @ Yerra Gangi Reddy held that on the filing of the chargesheet on conclusion of the investigation if a strong case is made out and on merits, it is found that the Accused has committed a non-bailable offence/crime, on the special reasons/grounds and considering Section 437(5) and Section 439(2) of Code of Criminal Procedure, 1973 (hereinafter referred to as “Cr. P.C”) over and above other grounds on which the bail to a person who is released on bail can be cancelled on merits.
Brief Facts:
The factual matrix of the case was that the deceased Shri Y.S. Vivekananda Reddy was found dead in his home and a case was registered under section 174 Cr.P.C. by the local police. Thereafter, a case under Section 302 read with Section 120-B of the Indian Penal Code,1860 was registered and Special Investigation Team (S.I.T.) was constituted by the State. The S.I.T. took over the investigation. During the course of the investigation, the Respondent was arrested and he was remanded to judicial custody. However, after a period of 90 days, the Accused applied for the default bail under Section 167(2) of the Cr. P.C. and he was granted bail.
After the investigation was taken up by the Appellant (hereinafter referred to as “CBI”), the CBI filed an application under Section 439(2) Cr.P.C. for cancellation of the bail granted to the Respondents which was dismissed by the learned Trial Court. Thereafter the C.B.I. filed the Criminal Petition before the High Court under Section 439(2) Cr.P.C. for cancellation of bail granted to the Respondent. However, the same was rejected by the High Court mainly on the ground that once Respondent No. 1 ( original Accused No. 1) was released on default bail under Section 167(2) Cr. P.C., the bail could not be cancelled on merits.
Contentions of the Appellant:
It was submitted that releasing the Accused on default bail under Section 167(2) of the Cr.P.C. would not amount to releasing the Accused on merits. Therefore, the bail can be cancelled on merits, considering the gravity of the offence. It was further submitted that though the bail is granted under Section 167(2) Cr.P.C., by deeming fiction, the same can be cancelled by the Court in terms of Section 437(5) and Section 439(2) Cr.P.C. It was submitted that such an order could be nullified for special reasons after the defect/default has been cured, i.e., after filing the chargesheet.
Contentions of the Respondent:
It was contended that the bail that was granted to the respondent under Section 167(2) Cr.P.C. cannot be revoked based only on the subsequent filing of the charge sheet. It was argued that the right of an Accused to be released on bail under Section 167(2) is an indefeasible right.
Observations of the Court:
The primary issue to be ascertained in the present was whether after an Accused is released on default bail, under which circumstances, his bail can be cancelled and whether bail can be cancelled on merits having found that the Accused committed a non-bailable crime after filing the chargesheet.
It was observed that Section 167(2) fixes the outer limit within which the investigation must be completed and if the same is not completed then the Accused has a right to be released on bail. Such default bail is deemed to be released under provisions of Chapter XXXIII of the Cr.P.C., which includes Sections 437 and 439 also.
It was opined that the order of release on bail under proviso to Section 167(2) Cr.P.C. is not an order on merits. An accused is released on bail under proviso to Section 167(2) Cr.P.C. on the failure of the prosecuting agency. Therefore, the deeming fiction under Section 167(2) Cr.P.C. cannot be interpreted to the length of converting the order of bail not on merits as if passed on merits.
The Bench analysed several judicial precedents and expounded that mere filing of the chargesheet after the release of a person under Section 167(2) Cr.P.C. cannot be a ground to cancel the bail. However, on the filing of the chargesheet on conclusion of the investigation, if a strong case is made out and on merits, it is found that he has committed a non-bailable offence/crime, on the special reasons/grounds and considering Section 437(5) and Section 439(2) Cr. P.C., over and above other grounds on which the bail to a person, who is released on bail can be cancelled on merits. It was noted that there is no absolute bar on cancelling bail under Section 167(2) Cr.P.C.
The decision of the Court:
The Hon’ble Apex Court held that the impugned judgment and order passed by the High Court dismissing the application for cancellation of the bail filed by the C.B.I. under Section 439(2) Cr.P.C. deserved to be quashed and set aside. Accordingly, the appeal was allowed.
Case Title: The State Through Central Bureau of Investigation Vs T. Gangi Reddy @ Yerra Gangi Reddy
Coram: Hon’ble Justice M.R. Shah and Hon’ble Justice C.T. Ravikumar
Case No: Criminal Appeal of 37 of 2023
Citation: 2023 Latest Caselaw 27 SC
Advocate for the Appellant: Shri K.M. Nataraj (ASG)
Advocate for the Respondent: Adv. Shri B. Adinarayana Rao
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