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AMICUS AI
Citation Codes
Neutral Citations
2009 INSC 309
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 482 of the Code of Criminal Procedure (CrPC)
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Cites
Cited by
Citation Codes
Neutral Citations
2009 INSC 309
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
  • Section 482 of the Code of Criminal Procedure (CrPC)
Smart Summary

Factual and Procedural Background

On 30 November 2006 the Civil Surgeon, Akola lodged an FIR alleging large-scale misappropriation of public funds at LDH Hospital, Murtijapur, involving hospital officers and authorised suppliers of the National Cooperative Consumer Federation of India Ltd. The appellant was not named in the FIR. During investigation the appellant’s brother and several suppliers allegedly implicated him as the ultimate beneficiary, stating they were paid only ₹2,000 per month while bogus bills amounting to approximately ₹26 crore were raised.

Most named or subsequent accused obtained anticipatory or regular bail. The appellant likewise secured anticipatory bail from the learned Sessions Judge, Akola on 19 December 2007, subject to reporting to the CID office three times a week—a condition later relaxed on 18 April 2008 to twice a month at the CID’s own suggestion.

The State of Maharashtra invoked Section 482 CrPC before the High Court of Bombay (Nagpur Bench) seeking cancellation of the appellant’s anticipatory bail. On 3 December 2008 the High Court allowed the application and set aside the bail order. Aggrieved, the appellant approached the Supreme Court, which granted leave to appeal.

Legal Issues Presented

  1. Whether the High Court erred in exercising its inherent powers under Section 482 CrPC to cancel the anticipatory bail granted to the appellant by the Sessions Judge.
  2. Whether, on the facts presented, grounds existed to justify cancellation of anticipatory bail when the appellant had complied with all bail conditions and the investigating agency itself sought relaxation of those conditions.

Arguments of the Parties

Appellant's Arguments

  • The High Court committed a serious error by cancelling anticipatory bail despite the appellant’s strict compliance with all conditions.
  • The investigating agency had conceded that stringent reporting conditions were unnecessary, undermining any need for cancellation.
  • Cancelling bail in these circumstances amounted to an illegal exercise of jurisdiction.

Respondent's Arguments

  • The Sessions Judge mistakenly considered an incorrect period of alleged offences (2001-2007) whereas the relevant period was 1 April 2005 to 7 October 2006.
  • Reliance on the storekeeper’s statement was misplaced because he was himself an accused attempting to shield his liability.
  • The appellant was the “kingpin” in an embezzlement of about ₹26 crore achieved through bogus bills without actual supply of medicines; therefore anticipatory bail should not have been granted.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court acknowledged the conceptual distinction between an appeal against a bail order and an order cancelling bail, emphasising that each must be assessed on its facts. It noted:

  • The FIR did not originally name the appellant; his alleged involvement emerged only from co-accused statements during investigation.
  • The appellant had fully complied with bail conditions and cooperated by supplying books of account.
  • The CID itself sought and obtained relaxation of the reporting requirement, indicating satisfaction with the appellant’s cooperation.
  • Other accused, including the storekeeper whose testimony allegedly implicated the appellant, continued on bail; yet the State did not seek cancellation of their bail.
  • If custodial interrogation became necessary, the investigating agency could have approached the Sessions Judge for appropriate directions rather than moving the High Court under Section 482 CrPC.

In these circumstances, the Court found no justification for the High Court’s intervention. The balance of justice, parity with other accused, and the appellant’s conduct all favoured restoration of anticipatory bail.

Holding and Implications

Holding: The Supreme Court set aside the High Court’s judgment dated 3 December 2008 and restored the anticipatory bail granted to the appellant on 19 December 2007, subject to directions that the appellant must submit to interrogation whenever the investigating agency so requests and comply with any further conditions that the Sessions Judge may impose.

Implications: The decision reinstates the appellant’s anticipatory bail and underscores that cancellation of bail requires compelling grounds beyond mere disagreement with the initial grant. The Court signalled that investigative needs can be met through targeted directions without resorting to cancellation, but it did not establish any new legal precedent beyond applying existing principles to the facts.

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    Fida Hussain Bohra v. State Of Maharashtra .

    S.B Sinha, J.— Leave granted. The appellant is before us aggrieved by and dissatisfied with a judgment and order dated 3-12-2008 passed by the High Court of Judicature at Bombay, Nagpur Bench, Nagpur whereby and whereunder an order dated 19-12-2007 passed by the learned Additional Sessions Judge, Akola granting anticipatory bail in his favour was set aside.

    2. The Civil Surgeon, Akola lodged a first information report on or about 30-11-2006 alleging that since the year 2000, several officers of LDH Hospital, Murtijapur and National Cooperative Consumer Federation of India Ltd., its authorised suppliers, subordinate suppliers, etc. committed criminal misappropriation of the public fund. The appellant was not named therein.

    3. Indisputably most of the accused named in the first information report or made accused subsequently filed applications for grant of anticipatory bail and/or regular bail which have been allowed. It is stated that brother of the appellant was also arrested. He named the appellant as also the authorised suppliers. It was disclosed by the authorised suppliers that the appellant is the real beneficiary of the amount misappropriated as they were being paid only a sum of Rs 2000 per month by him.

    4. The appellant applied for and was granted anticipatory bail by the learned Sessions Judge, Akola subject to the condition that he would attend the office of CID, Akola thrice a week between 11 a.m to 3 p.m till completion of investigation. Indisputably the said order has been complied with. On an application filed by the appellant for relaxation of the said condition and the response thereto filed by CID, the said condition was relaxed by an order dated 18-4-2008 directing the appellant to attend the office of CID only twice a month. It is said that CID itself stated that it was not necessary for him to attend their office thrice a week.

    5. Prior thereto the State filed an application purported to be under Section 482 of the Code of Criminal Procedure (CrPC) before the High Court questioning the correctness of the said order granting anticipatory bail to the appellant on 19-12-2007. By reason of the impugned judgment, the said application has been allowed.

    6. Mr Naresh Kumar, learned counsel appearing on behalf of the appellant would submit that the High Court has committed a serious error in passing the impugned judgment as by reason whereof anticipatory bail granted in favour by the learned Sessions Judge has illegally been cancelled. It was urged that keeping in view the fact that the appellant had abided by the conditions laid down in the order granting anticipatory bail and the investigating agency itself having given out that the strict conditions imposed thereby may suitably be relaxed, the High Court must be held to have committed a serious error in passing the impugned judgment.

    7. Ms Aparajita Singh, learned counsel appearing on behalf of the respondent, on the other hand, would contend that the learned Additional Sessions Judge committed a serious error in granting anticipatory bail to the appellant on the premise that the period involved in respect of commission of the offence was 2001-2007; whereas in fact the period involved was 1-4-2005 to 7-10-2006. It was urged that no reliance should have been placed on the statement of the storekeeper of the hospital that the medicines, etc. allegedly supplied by the authorised suppliers had been received, inasmuch as he himself being an accused must have made such a statement with a view to save his own skin. The appellant was the kingpin and the amount involved in the matter is about 26 crores which has been embezzled by the accused without making any supplies and by raising bogus bills.

    8. The High Court in its impugned judgment has rightly pointed out that there exists a distinction between an appeal from an order granting bail and an order of cancellation of bail. Correctness or otherwise of the orders passed by the appellate court setting aside an order granting bail or an order of cancellation of bail, in our opinion is required to be considered on the factual matrix involved in each case. For the purpose of grant of bail the amount involved may be of some relevance but not the only consideration.

    9. The first information report was lodged on 30-11-2006. The appellant was not named therein. His complicity in the commission of the alleged crime came to light only from the statements made by the other accused persons during investigation. He was granted anticipatory bail subject to the conditions mentioned therein. He indisputably complied with the said conditions. According to the appellant he had produced all books of accounts and has been fully cooperating with the investigating agency. The investigating agency, as noticed hereinbefore, accepted that the conditions for grant of anticipatory bail may be relaxed. If the investigating agency itself was satisfied with the conduct of the appellant vis-à-vis of the orders passed by the learned Additional Judge and furthermore did not object to relaxation of the conditions of bail, we fail to understand as to on what premise they could approach the High Court for setting aside the order granting bail.

    10. The appellant had remained on bail for a long time; the impugned judgment having been passed only on 3-12-2008. If the investigating agency was of the opinion that custodial interrogation or interrogation of the appellant in presence of the other accused was necessary, the learned Sessions Judge could have moved in that behalf. If matters relating to the involvement of the appellant in the crime vis-à-vis the other accused were required to be further probed, the Sessions Judge again could have been approached.

    11. We would assume that the appellant was involved in regard to the commission of offence for the period in question, namely, 1-4-2005 to 7-10-2006. We would also assume that the statement of storekeeper was not correct. If his statement was not correct and if a huge amount has been paid on the basis of bogus bills without any supply of medicine or other articles having been made, we fail to understand as to on what basis bail could be granted to the other accused persons including the storekeeper while depriving the appellant from obtaining the said benefit. It is also beyond anybody's comprehension as to why the High Court was not moved for cancellation of bail granted in favour of other public servants including the storekeeper.

    12. We, therefore, are of the opinion that in the facts and circumstances of this case interest of justice would be subserved if it is directed that the appellant shall in the event, any application therefor is filed by the investigation agency may be interrogated at any time suitable for the investigating officer either alone or with other accused persons, shall be allowed. The appellant shall comply with such other direction or directions as may be issued by the learned Sessions Judge, if and when, the learned Sessions Judge passes an order at the instance of the investigating agency or otherwise relying or on the basis of these observations.

    13. For the reasons aforementioned, the impugned judgment is set aside and the appeal is allowed with the aforementioned directions.

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    Comments

    Fida Hussain Bohra v. State Of Maharashtra .
    (Mar 3, 2009)