Supreme Court Allows Default Bail Without Deposit Condition in Section 420 IPC Case. Indefeasible Right Under Section 167(2) CrPC Cannot Be Subject to Monetary Conditions Based on Earlier Regular Bail Undertaking.

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Case Note & Summary

The appellant was arrested on 31.01.2020 for offences under Section 420 IPC in Crime No.31 of 2019. He was initially granted regular bail by the Magistrate under Section 437 CrPC on condition to deposit Rs.7,00,000 immediately and the balance of Rs.8,67,338 by 06.04.2020, based on an affidavit filed by his wife. The appellant challenged these conditions before the High Court, which dismissed the petition with liberty to approach the Magistrate for modification. Instead, the appellant applied for default bail under Section 167(2) CrPC before the Sessions Court, claiming he had been in custody for over 101 days without a chargesheet. The Sessions Court dismissed the application, noting the earlier bail conditions were not complied with. The High Court, however, allowed the default bail but imposed a condition to deposit Rs.8,00,000, considering the earlier undertaking. The appellant sought modification of this condition, which was rejected. The Supreme Court held that default bail under Section 167(2) CrPC is an indefeasible right that accrues when investigation is not completed within the prescribed period and no chargesheet is filed. The only requirement is that the accused applies for bail and is prepared to furnish bail. Imposing a condition of deposit of money, based on earlier regular bail proceedings, frustrates the object of Section 167(2) CrPC. The Court set aside the condition of deposit and directed the appellant's release on default bail without such condition, while the other conditions (like reporting to police station) were upheld.

Headnote

A) Criminal Procedure - Default Bail - Section 167(2) CrPC - Indefeasible Right - The accused is entitled to default bail if investigation is not completed within 60 or 90 days and no chargesheet is filed, and the accused applies for bail and is prepared to furnish bail. No condition of deposit of the alleged amount can be imposed while granting default bail, as it would frustrate the object and purpose of Section 167(2) CrPC. (Paras 9-9.1)

B) Criminal Procedure - Regular Bail vs Default Bail - Section 437 CrPC vs Section 167(2) CrPC - The earlier undertaking given by the accused's wife to deposit money in regular bail proceedings cannot be a ground to impose a deposit condition while granting default bail under Section 167(2) CrPC. The two are distinct and independent. (Paras 6.1, 9.1)

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Issue of Consideration

Whether while releasing an accused on default bail/statutory bail under Section 167(2) CrPC, a condition of deposit of amount can be imposed?

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Final Decision

Appeals allowed. Condition no. (b) in order dated 24.06.2020 passed by the High Court in Criminal OP(MD) No. 6214 of 2020 directing the appellant to deposit Rs.8,00,000 is set aside. The appellant shall be released on default bail/statutory bail under Section 167(2) CrPC without the condition of deposit. Other conditions, including reporting to police station, remain unchanged.

Law Points

  • Default bail under Section 167(2) CrPC is an indefeasible right
  • no condition of deposit can be imposed while granting default bail
  • only requirement is that investigation not completed within 60/90 days and accused applies for bail
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Case Details

2020 LawText (SC) (10) 38

Criminal Appeal Nos. 681-682 of 2020 (Arising from S.L.P. (Criminal) Nos.4386-4387/2020)

2020-09-01

M.R. Shah

Saravanan

State represented by the Inspector of Police

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Nature of Litigation

Criminal appeal against High Court order imposing condition of deposit while granting default bail under Section 167(2) CrPC

Remedy Sought

Appellant sought deletion of condition to deposit Rs.8,00,000 imposed by High Court while granting default bail

Filing Reason

Appellant was arrested for cheating under Section 420 IPC; after 101 days in custody without chargesheet, he applied for default bail; High Court granted bail but imposed condition to deposit Rs.8,00,000

Previous Decisions

Magistrate granted regular bail on 3.2.2020 with condition to deposit Rs.7,00,000 and balance by 6.4.2020; High Court dismissed challenge to those conditions; Sessions Court dismissed default bail application; High Court granted default bail with deposit condition

Issues

Whether condition of deposit of amount can be imposed while granting default bail under Section 167(2) CrPC

Submissions/Arguments

Appellant: Default bail under Section 167(2) CrPC is mandatory and indefeasible; no condition of deposit can be imposed; earlier regular bail conditions are irrelevant Respondent: High Court imposed condition considering earlier undertaking by appellant's wife to deposit money

Ratio Decidendi

Default bail under Section 167(2) CrPC is an indefeasible right that accrues when investigation is not completed within 60 or 90 days and no chargesheet is filed. The only requirement for grant is that the accused applies for bail and is prepared to furnish bail. No condition of deposit of the alleged amount can be imposed while granting default bail, as it would frustrate the object and purpose of Section 167(2) CrPC.

Judgment Excerpts

The short question which is posed for the consideration of this Court is, whether while releasing the appellant-accused on default bail/statutory bail under Section 167(2), Cr.P.C., any condition of deposit of amount as imposed by the High Court, could have been imposed? Imposing such condition while releasing the accused on default bail/statutory bail would frustrate the very object and purpose of default bail under Section 167(2), Cr.P.C.

Procedural History

Arrest on 31.01.2020 -> Regular bail granted by Magistrate on 3.2.2020 with deposit conditions -> Challenge to conditions dismissed by High Court on 24.06.2020 -> Default bail application dismissed by Sessions Court -> High Court granted default bail on 24.06.2020 with condition to deposit Rs.8,00,000 -> Modification application dismissed on 27.07.2020 -> Present appeals to Supreme Court

Acts & Sections

  • Code of Criminal Procedure, 1973 (CrPC): 167, 167(2), 437
  • Indian Penal Code, 1860 (IPC): 420
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Supreme Court Supreme Court Allows Default Bail Without Deposit Condition in Section 420 IPC Case. Indefeasible Right Under Section 167(2) CrPC Cannot Be Subject to Monetary Conditions Based on Earlier Regular Bail Undertaking.
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