- Bookmark
- Share
- CaseIQ
Assistant Director Directorate Of Revenue Intelligence Madras 17 v. Srinivasan
Structured Summary of the Opinion
Factual and Procedural Background
This petition was filed under section 482 of the Criminal Procedure Code seeking cancellation of an anticipatory bail order granted by the learned First Additional Sessions Judge, Madras, to the respondent. The petitioner alleged that the respondent was involved in an investigation (file no. VIII/26/156 - 84) by the Directorate of Revenue Intelligence (DRI), Madras, concerning the alleged illicit export of a banned item (snake skins) on a large scale with value running into several lakhs of rupees. The petitioner argued that the sessions judge failed to distinguish between ordinary Indian Penal Code cases and grave economic offences when granting anticipatory bail, and that, armed with bail, the respondent was refusing to cooperate with the investigation, being obstructive and not appearing promptly for interrogation.
The respondent filed a detailed counter-affidavit denying the allegations. The counter set out searches of the respondent's residential premises (19.5.1984) and business premises (28.5.1984), stated that nothing incriminating was found at the residence and described a sequence of anticipatory-bail petitions in 1984 (Crl. M.P. Nos. 2113, 2346 and 2426). The learned First Additional Sessions Judge granted anticipatory bail on 8.8.1984 under section 438 CrPC subject to conditions. The respondent averred that he has been complying with the bail conditions by appearing regularly before investigating officers and that several statements were recorded in his presence; he contended that the petitioner was using this cancellation petition to coerce him into giving a statement.
Legal Issues Presented
- Whether the anticipatory bail granted to the respondent should be cancelled under section 482 CrPC.
- Whether persons accused of serious economic offences (here, alleged illicit export of snake skins) should be treated differently for purposes of anticipatory bail, i.e., whether such offences justify refusal of anticipatory bail as a categorical rule.
- Whether there existed sufficient material to show that the respondent was likely to abscond or tamper with prosecution evidence (the two paramount considerations identified by authority), thereby justifying cancellation of bail.
Arguments of the Parties
Petitioner's Arguments
- The respondent is involved in a grave economic offence (illicit export of banned snake skins on a large scale), and therefore does not deserve anticipatory bail.
- The sessions judge failed to distinguish between ordinary IPC offences and grave economic offences when granting anticipatory bail.
- Because the respondent holds an anticipatory-bail order he is refusing to cooperate with the investigation and is obstructive, not appearing promptly or submitting to interrogation; cancelling bail is necessary to secure cooperation and obtain statements from the respondent and other involved persons.
- Counsel relied on a decision (Gurubaksh Singh v. State, A.I.R. 1978 P&H 1) to argue that joining investigation while on anticipatory bail may not be a substitute for custody when personal interrogation in custody is legitimately required.
Respondent's Arguments
- The respondent denied culpability and explained the sequence of searches and anticipatory-bail petitions; prior petitions had been dismissed where the department represented no case pending.
- The learned sessions judge properly granted anticipatory bail (Crl. M.P. No. 2426 of 1984) on 8.8.1984 under section 438 CrPC and imposed conditions which the respondent has been complying with.
- The respondent has been regularly appearing before investigating officers; nine persons were examined by the petitioner in his presence and statements recorded. The department has not shown that the respondent has tampered with witnesses or attempted to abscond.
- The respondent argued that there is no legal bar to grant anticipatory bail in economic or social offences and relied on authorities where anticipatory bail was granted in customs or related offences; he urged that cancellation of bail would unjustifiably curtail personal liberty and that the investigation was nearly complete.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Gurubaksh Singh v. State, A.I.R. 1978 P&H 1 (F.B.) | Statement that mere joining of investigation while on anticipatory bail may be no substitute for custody when personal interrogation in custody is legitimately required. | The petitioner's counsel relied on this passage. The opinion records that this decision was later reversed by the Supreme Court; the court did not treat it as a decisive authority in favour of cancelling bail. |
| Gurubaksh Singh v. State, (1980) (multiple citations to S.C. reports) | Reflects the Supreme Court reversal of the earlier Gurubaksh Singh decision cited above. | The court noted the reversal and did not accept the earlier observation as dispositive of the present petitioner's contention. |
| Devadoss, In re, (1980) M.L.J. (Crl.) 723 | Shows that there is no legal bar to granting anticipatory bail in offences under the Tamil Nadu Prohibition Act. | The respondent relied on this authority to support the proposition that economic or regulatory offences are not per se exempt from anticipatory bail; the court treated it as part of supporting material for that position. |
| E. Joseph v. Asst. Collector of Customs, Tuticorin, (1982) Crl. L.J. 559 | Instance where anticipatory bail was granted in an offence under the Customs Act. | The respondent relied on this decision to demonstrate that customs-related offences have not been categorically excluded from anticipatory bail; the court took it into account in rejecting the categorical distinction urged by the petitioner. |
| Balchand Jain v. State of M.P., (1976) S.C.C. (Crl.) 689 | Held anticipatory bail can be issued even under the Defence and Internal Security of India Act, 1971 and rules thereunder. | The court cited this to underline that even serious statutory schemes do not automatically preclude anticipatory bail, supporting the view that economic offences are not to be placed in a separate category for denying anticipatory bail. |
| Gurcharan Singh v. State (Delhi Admn.), (1978) M.L.J. (Crl.) 261 | Identifies two paramount considerations in bail matters: (1) likelihood of accused fleeing from justice; and (2) likelihood of tampering with prosecution evidence; no inflexible formula exists. | The court relied on this formulation to frame the legal test to be applied when considering cancellation of anticipatory bail: focus on flight risk and tampering rather than gravity of offence alone. |
| Niranjan Singh v. Prabhakar Rajaram Kharote, (1980) L.W. (Crl.) 116 | Advises avoiding detailed examination of evidence and merits when deciding bail applications. | The court invoked this admonition to justify not reappraising the merits in detail and to uphold that the sessions judge had considered relevant materials and exercised discretion properly. |
| Ratilal Bhanji v. Asst. Customs Collector, Bombay, (1967) Crl. L.J. 1576; (A.I.R. 1967 S.C. 1639) | The High Court has inherent power to order arrest/commitment of an accused enlarged on bail if there is intimidation, bribery, tampering with witnesses or attempt to abscond, but such power is to be invoked only in exceptional cases. | The court cited this to note that even where bail exists, exceptional circumstances may justify custody; in the present case such exceptional grounds were not satisfactorily established. |
| Gurubakash Singh Sibbia v. State of Punjab, (1980) S.C.C. (Crl.) 465 | Holds that discretion under section 438 CrPC can be exercised even in serious cases like economic offences; corruption cannot reliably be assessed at the anticipatory-bail stage. | The court relied on this Supreme Court authority to reject the petitioner's submission that economic-offence accused should be categorically denied anticipatory bail. |
| Prem Chand v. Union of India, (1981) M.L.J. (Crl.) 481; A.I.R. 1981 S.C. 613 | Emphasises protection of fundamental rights and that personal liberty cannot be subordinated to police convenience; vague allegations and secret hearings violate Articles 14, 19 and 21. | The court used this authority to reject the argument that cancellation of bail is justified merely to facilitate investigation or to coerce statements from the accused. |
| Mohinder Singh & Others v. Mal Singh & Others, (1983) 2 Crimes 971 (DHC) | Explains that cancellation of bail is review-like and generally permitted only on supervening circumstances; prosecution must prove on preponderance of probabilities that accused tampered, abused liberty or is likely to interfere with justice. | The court cited this to highlight the evidentiary threshold required for cancelling bail, which the petitioner did not meet. |
| Bhagirathsinh Judeja v. State of Gujarat, (1984) Crl. L.J. 160; A.I.R. 1984 S.C. 372 | Stresses that very cogent and overwhelming circumstances are necessary for cancellation of bail; focus must be on availability for trial and likelihood of tampering with evidence. | The court relied on this recent Supreme Court authority to reinforce that cancellation requires compelling material, which was absent in the present petition. |
Court's Reasoning and Analysis
The court proceeded by recognising that anticipatory bail is a discretionary relief and therefore the key question was whether the learned sessions judge properly exercised judicial discretion in granting bail to the respondent.
The opinion analysed the competing contentions:
- Petitioner's core contention was that the respondent, being involved in a serious economic offence, should not have been granted anticipatory bail and that the order was impeding investigation because the respondent was allegedly refusing to cooperate.
- Respondent's position was that the sessions judge had considered the facts and imposed conditions under section 438 CrPC; the respondent had complied with those conditions by appearing regularly before the investigating officers and by being present when multiple persons were examined; thus, there was no basis to infer tampering or flight risk.
The court reviewed the authorities put forward by both sides and distilled the governing legal principle (following Gurcharan Singh and subsequent Supreme Court authorities): the two paramount considerations in bail/cancellation applications are (1) whether the accused is likely to flee from justice and (2) whether there is a real likelihood of his tampering with prosecution evidence. The court emphasised that the gravity of the offence alone is not the test for cancellation of bail.
Applying that principle to the material on record, the court observed that:
- The respondent had averred compliance with bail conditions and regular appearances before investigating officers; several statements were recorded in his presence. The petitioner did not file a reply affidavit to controvert these assertions.
- It was not established to the court's satisfaction that the respondent was fleeing from justice or tampering with evidence.
- The court noted authorities (including Sibbia, Ratilal Bhanji, Mohinder Singh, Bhagirathsinh Judeja and Prem Chand) holding that: (a) serious or economic offences do not automatically preclude anticipatory bail; (b) cancellation requires cogent proof of tampering or flight risk; and (c) personal liberty cannot be subordinated to investigative convenience or vague allegations.
- Given the absence of satisfactory material showing tampering or absconding and considering that the sessions judge had taken relevant materials into account, the court concluded that there was no serious infirmity in the sessions judge's exercise of discretion.
Holding and Implications
HOLDING: The petition was dismissed. The court concluded that the learned sessions judge had properly exercised judicial discretion in granting anticipatory bail and that the petitioner had not established grounds for cancellation.
IMPLICATIONS: The direct effect of the decision is that the anticipatory bail order granted to the respondent remains in force. The opinion emphasises that cancellation of bail is not to be ordered on the sole basis of the gravity of the offence and that only cogent material showing that the accused is absconding or likely to tamper with evidence will justify cancellation. The opinion does not purport to lay down a new precedent beyond applying established Supreme Court guidance; no broader or novel legal rule was announced.
Result recorded in the opinion: "This petition fails and is dismissed."
This petition has been filed under section 482 of the criminal procedure code to cancel the order passed by the learned first additional sessions judge, madras, granting anticipatory bail to the respondent herein.
2. It is alleged in the petition that the respondent herein is concerned in a case bearing file no. Viii/26/156 - 84 - dri of the directorate of revenue intelligence, madras wherein the petitioner was engaging himself, along with others in a matter of illicit export of banned item namely snake skine on a very large scale, the value of which would be over several lakhs of rupees, that the learned sessions judge failed to draw a distinction between a case under the indian penal code and a case involving grave economic offences while granting anticipatory bail and that armed with the order of anticipatory bail, the respondent herein is refusing to co - operate with the investigation and he is unduly obstructive and fails to. Turn up promptly or submit himself for interrogation for any intended period and therefore, the anticipatory bail granted to the respondent may be cancelled.
3. The respondent herein filed a detailed counter denying the allegations in the petition. It is contended by the respondent that his residential premises was searched on 19. 5. 1984 between 12 noon and 1. 30 p. M. By the customs officials in the absence of the respondent and nothing incriminating was found. On 28. 5. 1984, they searched the business premises of the respondent and they took the respondent�s brother to the custom house. Apprehending arrest by customs officials, the respondent moved before the court below for anticipatory bail in crl. M. P. No. 2113 of 1984. Since the department represented that no case was pending against the respondent, the said petition was dismissed with a direction that the respondent can appear before the department along with his advocate. Thereafter, the officers attached to the dri started investigation in connection with the attempted export of snake skins by m/s. G. D. Traders and m/s. Gay dev exports. Apprehending arrest, the respondent filed crl. M. P. No. 2346 of 1984 before the learned sessions judge, "on"> "on"> madras for anticipatory bail. Since the department represented before court that no case was pending against the respondent, the petition was dismissed on 26. 7. 1984. Again the respondent filed crl. M. P. No. 2426 of 1984 for anticipatory bail apprehending arrest by the petitioner. The learned first additional sessions judge granted anticipatory bail to the respondent imposing conditions as per section 438, criminal procedure code, on 8. 8. 1984. Thereafter, the respondent has been sincerely complying with the condition in that, he has been regularly appearing before the petitioner daily and 9 persons were examined by the petitioner in his presence and statements running to several pages were recorded. Since the petitioner has failed to get a statement from the respondent according to the dictation and direction, he has come forward with this petition with an intention to extract a statement from the respondent by threat and coercion on the cancellation of the order of anticipatory bail. The department is unnecessarily delaying the investigation. The respondent is an income - tax assessee and he is a law abiding citizen. The petitioner personal liberty will be whittled down if the bail granted already is cancelled. The petitioner has almost completed the investigation. Therefore, this petition may be dismissed.
4. In support of the respective contentions, both the counsel relied on a number of decisions. Since granting of anticipatory bail to a person apprehending arrest is a discretionary relief, we have to see whether the learned sessions judge has properly exercised his judicial discretion in ordering anticipatory bail to the respondent herein. The learned counsel for the petitioner submitted that since the respondent is involved in a case of illicit export of banned item viz. , snake skins on vary large scale, the value of which comes to several lakhs of rupees thereby committing a serious economic offence, he does not deserve to be enlarged on anticipatory bail. The learned counsel further submitted that the interrogation by the customs officials is quite different from that of the interrogation by the police in a case under the indian penal code and that the petitioner is unable to get useful information from the respondent on account of the anticipatory bail granted to the respondent. In support of this contention, the learned counsel drew my attention to the decision reported in gurubaksh singh v. State, a. I. R. 1978 punj. & haryana 1 (f. B.) wherein it was held as follows:
.. A mere joining of a person in the courage of the investigation whilst an anticipatory bail is no substitute for investigation in custody in all those cases where his personal interrogation may be legitimately required. We have yet to come across a case where a party seeking bail would not zealously offer to join the investigation thereof and to similarly undertake not to tamper with the witness. If this by itself were to be sufficient then perhaps the provisions of section 167 (2) need hardly ever be resorted to. .
According to the learned counsel, even though the said decision was reversed by the supreme court vide gurubaksh singh v. State, (1980) 2 s. C. C. 565: (1980) l. W. (crl.) 135: (1980) crl. L. J. 1125: (1980) s. C. C. (crl.) 465: a. I. R. 1980 s. C. 1632, the above observation has not been set aside and as such it still holds good.
6. Learned counsel for the petitioner contended that unless the offenders committing economic offence are put on a different category, the investigating agency would be put to a very great hardship and it is very difficult to proceed against those offenders who are all rich and influential persons and therefore, the learned sessions judge ought not to have granted anticipatory bail to the respondent, who is involved in the commission of an economic offence. On the other hand, learned counsel for the respondent submitted that the learned sessions judge has exercised his judicial discretion correctly in granting anticipatory bail, that this respondent has been complying with the conditions imposed by the learned sessions judge and he has been regular in appearing before petitioner and since more than 21 days had already elapsed and the investigation is almost over, there are no valid grounds alleged in the petition for cancelling the order of anticipatory bail.
7. Learned counsel for the respondent drew my attention to the ruling reported in devadoss , in re, (1980) m. L. J. (crl.) 723 and contended that there is no legal bar involved in offences under the tamil nadu prohibition act and that it is no where provided that anticipatory bail should not be granted to persons involved in economic or social offences. Similarly, in e. Joseph v. Asst. Collector of customs, tuticorin , (1982) crl. L. J. 559,swamikkannu, j. , had granted anticipatory bail to a person involved in an offence under the customs act. In balchand jain v. State of m. P. , (1976) s. C. C. (crl.) 689, their lordships of the supreme court have held that an order for anticipatory bail can be issued even to a person apprehending arrest under the defence and internal security of india act, 1971 and the rules framed thereunder. In the light of the above decisions, i am of the view that the contention of the learned counsel for the petitioner that the offenders committing economic offences should be put to a different category than that of offenders committing offences under the indian penal code cannot be accepted.
8. The learned counsel for the petitioner contended that the learned sessions judge has failed to apply the correct principles while ordering anticipatory bail. In gurcharan singh v. State (delhi admn.) , (1978) m. L. J. (crl.) 261 their lordships of the supreme court have held as follows:
We may repeat that the two paramount considerations viz. , likelihood of the accused fleeing from justice and his tampering with prosecution evidence relate to ensuring a fair trial of the case in a court of justice. It is essential that due and proper weight should be bestowed on these two factors apart from others. There cannot be an inexerable formula in the matter of granting bail. The facts and circumstances of each case will govern the exercise of judicial discretion in granting or cancelling bail.
The respondent has refuted the allegation of the petitioner that he is refusing to co - operate with the investigation and he is unduly obstructive by contending that ever since the date of anticipatory bail granted to the respondent, he has been regularly appearing before the customs officials, that the department has already recorded the statement of several persons in his presence, that the investigation is almost over and that therefore, the question of tampering with the prosecution evidence does not arise. The petitioner has not controverted the above statement of the respondent by filing any reply affidavit. It is not established to the satisfaction of this court that the respondent is fleeing away from justice and he is tampering with prosecution evidence. Therefore. , the contention of the petitioner that the respondent is refusing to co - operate with the investigation also fails.
9. My attention was also drawn to the decision of the supreme court reported in niranjan singh v. Prabhakar rajaram kharote , (1980) l. W. (crl.) 116wherein it was held that detailed examination of the evidence and elaborate documentation of the merits should be avoided while passing orders on bail applications. The learned sessions judge while passing the order has taken into consideration the relevant materials and exercised his discretion properly.
10. In ratilal bhanji v. Asst. Customs collector, "on"> "on"> bombay , (1967) crl. L. J. 1576: (1968) 1 s. C. J. 163: (1968) m. L. J. (crl.) 15: (1967) 3 s. C. R. 926: a. I. R. 1967 s. C. 1639, the supreme court held as follows:
Nevertheless, if at any subsequent stage of the proceedings, it is found that any person accused of a bailable offence is intimidating, bribing or tampering with the prosecution witnesses or is attempting to abscond, the high court has inherent power to cause him to be arrested and to commit him to custody for such period as it thinks fit. This overriding inherent power can be invoked in exceptional cases only when the high court is satisfied that the ends of justice will be defeated unless the accused is committed to custody.
In this case, it has not been satisfactorily established that the respondent is tampering with the witnesses or is attempting to abscond and therefore, the bail granted to him is liable to be cancelled.
11. In gurubakash singh sibbia v. State of "on"> punjab , (1980) s. C. C. (crl.) 465: (1980) crl. L. J. 1125 the supreme court held as follows:
It is also not proper to hold that in serious cases like economic offences involving blatant corruption at the higher rungs of the executive and political power the discretion under section 438 of the code should not be exercised. It is not possible for the court to assess the blatantness of corruption at the stage of anticipatory bail.
It is also not possible to hold that anticipatory bail cannot be granted unless it is alleged and shown that the proposed accusations are mala fide.
This decision supports the contention of the respondent that no distinction can be made between economic offences and the offences committed under the indian penal code.
12. The learned counsel for the petitioner argued that as the respondent is armed with an order of anticipatory bail, he is refusing to co - operate with the investigation and if the bail is cancelled, it will enable the petitioner to get information from the respondent and nab, other persons who are largely involved in the illicit export of snake skins along with the respondent. This argument is hardly convincing in the light of the decision in prem chand v. Union of india, (1981) m. L. J. (crl.) 481: (1981) 2 s. C. J. 166: (1981) l. W. (crl.) 43: (1981) s. C. C. (crl.) 239: (1981) 1 s. C. C. 639: (1981) crl. L. J. 5: (1981) 1 s. C. R. 1262: a. I. R. 1981 s. C. 613 wherein the supreme court held as follows:
�the provisions of the statute ostensibly have a benign purpose and in the context of escalation of crimes, may be restrictions which, in normal times might appear unreasonable, may have to be clamped down, on individuals. We are conscious of the difficulties of detection and proof and the strain on the police in tracking down criminals. But fundamental rights are fundamental and personal liberty cannot be put at the mercy of the police. We are further clear that natural justice must be fairly complied with and vague allegations and secret hearings are gross violations of articles 14, 19 and 21 of the constitution as expounded by this court in maneka gandhi�s case, (1978) 2 s. C. J. 312: (1978) 1 s. C. C. 248: (1978) 2 s. C. R. 621: a. I. R. 1978 s. C. 597. �
13. In mohinder singh and others v. Mal singh and others, (1983) 2 crimes 971 the delhi high court followed the judgment of the supreme court in the state v. Sanjay gandhi, (1978) crl. L. J. 952: (1978) 2 s. C. C. 411: (1978) s. C. C. (crl.) 223: (1978) 2 s. C. J. 159: (1978) m. L. J. (crl.) 500: a. I. R. 1978 s. C. 961 wherein it was observed as follows:
�. Cancellation of bail necessarily involves the review of a decision already made and can by and large be permitted only if, by reason of supervening circumstances, it would be no longer conducive to a fair trial to allow the accused to retain his freedom during the trial. A bail once granted cannot be cancelled on the off change or on the supposition that witnesses have been won over by the accused. But in an application for cancellation of bail the prosecution can establish its case by showing on a preponderance of probabilities and not beyond reasonable doubt that the accused has attempted to tamper or has tampered with its witnesses, has abused his liberty or that there is a reasonable apprehension that he will interfere with the course of justice. If the accused has abused his liberty by attempting to suborn the prosecution witnesses, he has forfeited his right to remain free. The power to take back in custody an accused who has been enlarged on bail has to be exercised with care and circumspections. �
14. In the latest decision reported in bhagirathsinh judeja v. State of gujarat, (1984) crl. L. J. 160: (1984) 3 s. C. C. 284: (1984) all. Crl. C. 3: (1984) s. C. C. (crl.) 63: a. I. R. 1984 s. C. 372, the supreme court held
�. The high court completely overlooked the fact that it was not for it to decide whether the bail should be granted but the application before it was for cancellation of the bail. Very cogent and overwhelming circumstances are necessary for an order seeking cancellation of the bail. And the trend today is towards granting bail because it is now well - settled by a catena of decisions of this court that the power to grant bail is not to be exercised as if the punishment before trial is being imposed. The only material considerations in such a situation are whether the accused would be readily available for his trial and whether he is likely to abuse the discretion granted in his favour by tampering with evidence. The order made by the high court is conspicuous by its silence on these two relevant considerations. �
15. It is very clear from the above decisions that the gravity of the offence is not criterion for the cancellation of the bail, but only the two material factors viz. , the accused is absconding and he is likely to abuse the discretion granted in his favour by tampering with evidence, have to be taken into consideration in dealing with an application for cancellation of bail. Except the vague allegations in the petition, it is not established by the petitioner to the satisfaction of this court that the order of the learned sessions judge, granting bail to the respondent herein is vitiated by any serious infirmity for which this court can interfere in the interests of justice. In my view, the learned sessions judge, has exercisedhis discretion properly.
16. In the result, this petition fails and is dismissed.
Alert