Supreme Court Restores Bail to Accused in NDPS Case Due to Lack of Recovery and Inadmissibility of Confessional Statements. Court Holds That Confessional Statements Under Section 67 NDPS Act Are Inadmissible and That Absence of Contraband Recovery and Inconclusive Test Reports Weigh in Favor of Bail.

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Case Note & Summary

The Supreme Court dealt with two special leave petitions arising from a common judgment of the Madras High Court concerning bail under the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act). The Directorate of Revenue Intelligence (DRI) had seized approximately 1,37,665 tablets from four locations in Chennai, including the premises of Raja Chandrasekharan (A-1) and courier offices. Based on statements of A-1 and others, Bharat Chaudhary (A-4) was arrested in Jaipur five months later, though no contraband was recovered from him. The Special Judge granted bail to A-4 on grounds including lack of recovery, inconclusive test reports showing some tablets were sexual enhancement drugs, and the inadmissibility of statements under Section 67 following Tofan Singh. The High Court cancelled A-4's bail and rejected A-1's bail, holding that the statements were admissible for investigation purposes and that the quantity indicated commercial dealing. The Supreme Court restored A-4's bail, finding that the High Court erred by overlooking the lack of recovery from A-4, the inconclusive nature of test reports, and the binding effect of Tofan Singh. Regarding A-1, the Court noted that his bail application was rejected by the High Court on similar grounds, but since A-1 was in custody for over two years and the trial was not likely to conclude soon, the Court granted him bail subject to conditions. The Court emphasized that the twin conditions under Section 37 of the NDPS Act were not an absolute bar where the prosecution's case was weak and the accused had been in custody for a substantial period.

Headnote

A) Criminal Law - Bail under NDPS Act - Section 37 NDPS Act - Commercial Quantity - The court considered whether the twin conditions under Section 37 of the NDPS Act for grant of bail were satisfied, particularly in the context of commercial quantity of contraband. The Supreme Court held that where no contraband is recovered from the accused and test reports are inconclusive, the rigors of Section 37 may not apply strictly. (Paras 10-11)

B) Evidence Law - Confessional Statements - Section 67 NDPS Act - Inadmissibility - Following the majority view in Tofan Singh v. State of Madras, the court reiterated that confessional statements recorded under Section 67 of the NDPS Act are inadmissible in evidence. The High Court erred in relying on such statements to cancel bail. (Paras 5, 7, 10)

C) Criminal Procedure - Bail - Cancellation of Bail - The Supreme Court held that the High Court's cancellation of bail granted to A-4 was unsustainable as the Special Judge had valid reasons, including lack of recovery, inconclusive test reports, and the impact of Tofan Singh. The High Court's approach was found to be erroneous. (Paras 10-11)

D) Narcotic Drugs - Seizure and Sampling - Sections 42, 52 NDPS Act - Standing Order 1/89 - The court noted arguments regarding non-compliance with procedural requirements for seizure and sampling, but did not finally adjudicate on these issues. (Para 8)

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Issue of Consideration

Whether the High Court was justified in cancelling the bail granted to A-4 and rejecting the bail application of A-1 under the NDPS Act, considering the absence of recovery from A-4, the inadmissibility of statements under Section 67 of the NDPS Act, and the inconclusive nature of test reports regarding the seized substances.

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Final Decision

The Supreme Court allowed the appeals. The order of the High Court cancelling bail of A-4 was set aside and his bail was restored. The bail application of A-1 was allowed, and he was directed to be released on bail on such terms as the trial court may impose. The Court held that the High Court erred in relying on inadmissible statements and overlooking the lack of recovery and inconclusive test reports.

Law Points

  • Bail under NDPS Act
  • Section 37 NDPS Act
  • Section 67 NDPS Act
  • Inadmissibility of confessional statements
  • Tofan Singh v. State of Madras
  • Commercial quantity
  • Test reports
  • Seizure procedure
  • Section 42 NDPS Act
  • Section 52 NDPS Act
  • Standing Order 1/89
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Case Details

2021 LawText (SC) (12) 49

Petition for Special Leave to Appeal (Criminal) No. 5703 of 2021 and No. 8919 of 2021

2021-12-13

Hima Kohli

Gopal Shankaranarayanan, Anand Grover, Aishwarya Bhati

Bharat Chaudhary and Raja Chandrasekharan

Union of India and The Intelligence Officer, Directorate of Revenue Intelligence

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Nature of Litigation

Criminal appeals against cancellation of bail and rejection of bail under NDPS Act

Remedy Sought

Restoration of bail for A-4 and grant of bail for A-1

Filing Reason

High Court cancelled bail of A-4 and rejected bail of A-1

Previous Decisions

Special Judge granted bail to A-4 on 2nd November 2020; High Court cancelled it on 15th July 2021 and rejected A-1's bail

Issues

Whether the High Court was justified in cancelling the bail granted to A-4 under the NDPS Act? Whether the High Court erred in rejecting the bail application of A-1 under Section 439 CrPC? Whether the confessional statements recorded under Section 67 of the NDPS Act are admissible in evidence for the purpose of bail?

Submissions/Arguments

For A-4: No contraband recovered from him; test reports inconclusive; statements under Section 67 inadmissible per Tofan Singh; no live link established. For A-1: No commercial quantity proved; test reports show sex enhancement drugs; non-compliance with Sections 42 and 52; samples not drawn properly. For DRI: A-4 is mastermind; nexus established through statements and digital evidence; twin conditions under Section 37 not satisfied.

Ratio Decidendi

Confessional statements recorded under Section 67 of the NDPS Act are inadmissible in evidence following Tofan Singh. Where no contraband is recovered from the accused and test reports are inconclusive, the rigors of Section 37 of the NDPS Act may not be an absolute bar to bail. The High Court's cancellation of bail was unsustainable as it relied on inadmissible evidence and ignored material facts.

Judgment Excerpts

the records sought to be relied upon by the prosecution show that one test report dated 6th December, 2019, two test reports dated 17th December, 2019 and one test report dated 21st December, 2019 in respect of the sample pills/tablets drawn and sent for testing by the prosecuting agency conclude with a note appended by the Assistant Commercial Examiner at the foot of the reports stating that ' quantitative analysis of the sampl' the impugned order cancelling the bail granted in favour of Bharat Chaudhary [A-4], is not sustanabile in view of the fact that the records sought to be relied upon by the prosecution show that one test report dated 6th December, 2019, two test reports dated 17th December, 2019 and one test report dated 21st December, 2019 in respect of the sample pills/tablets drawn and sent for testing by the prosecuting agency conclude with a note appended by the Assistant Commercial Examiner at the foot of the reports stating that ' quantitative analysis of the sampl'

Procedural History

The DRI seized tablets from four locations in Chennai in October 2019. A-1 to A-3 were arrested on 18th October 2019. A-4 was arrested on 17th March 2020 in Jaipur and produced before NDPS Court, Chennai on 19th March 2020. Special Judge granted bail to A-4 on 2nd November 2020. DRI challenged the bail order before Madras High Court, which cancelled A-4's bail and rejected A-1's bail on 15th July 2021. Both A-4 and A-1 filed special leave petitions before the Supreme Court.

Acts & Sections

  • Narcotic Drugs and Psychotropic Substances Act, 1985: Section 8(c), Section 22(c), Section 24, Section 25, Section 28, Section 29, Section 37, Section 42, Section 52, Section 52A, Section 67
  • Code of Criminal Procedure, 1973: Section 439
  • Customs Act, 1962:
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