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2018 (8) TMI 1907 - HC - Money Laundering


Issues Involved:
1. Right to life and liberty under Article 21 of the Constitution.
2. Conditions for bail under Section 37 of the Narcotic Drugs and Psychotropic Substances (NDPS) Act.
3. Compliance with procedural safeguards under Sections 50 and 51 of the NDPS Act.
4. Constitutional validity of Section 37(1)(b)(ii) of the NDPS Act.
5. Judicial discretion under Section 439 of the Criminal Procedure Code (Cr.P.C).

Issue-wise Analysis:

1. Right to Life and Liberty under Article 21 of the Constitution:
The judgment emphasizes the fundamental right to life and liberty guaranteed by Article 21 of the Constitution, which cannot be suspended even under other constitutional provisions. The court highlights the continuous debate between individual rights and state power, particularly in the context of bail and custody. The petitioner’s right to liberty is central to the case, as he seeks bail pending trial.

2. Conditions for Bail under Section 37 of the NDPS Act:
Section 37 of the NDPS Act imposes stringent conditions for granting bail, including the requirement for the court to be satisfied that the accused is not guilty and is unlikely to commit any offense while on bail. The court notes that the Special Judge dismissed the bail application based on the petitioner’s conscious possession of 300 grams of intoxicating powder. However, the court finds that the Special Judge did not record satisfaction regarding the petitioner’s likelihood to commit an offense while on bail, as required by Section 37(1)(b)(ii).

3. Compliance with Procedural Safeguards under Sections 50 and 51 of the NDPS Act:
The petitioner argues that the police did not comply with the procedural safeguards under Sections 50 and 51 of the NDPS Act, which are designed to protect individuals from false implication. The court agrees, noting that merely asking the petitioner whether he wanted to be searched before a gazetted officer or magistrate is insufficient compliance with Section 50. This non-compliance contributes to the court’s prima facie satisfaction that the petitioner may not be guilty.

4. Constitutional Validity of Section 37(1)(b)(ii) of the NDPS Act:
The court discusses the constitutional validity of Section 37(1)(b)(ii), noting that similar provisions in other acts have been declared unconstitutional for being arbitrary and irrational. The court highlights the inherent inconsistency and irrationality of requiring the court to be satisfied that the accused is not guilty and is unlikely to commit any offense while on bail. This requirement is seen as violating the presumption of innocence and being humanly impossible to satisfy. The court references the Supreme Court’s judgment in Nikesh Tarachand Shah, which declared a similar provision in the Prevention of Money Laundering Act unconstitutional.

5. Judicial Discretion under Section 439 of the Cr.P.C:
Section 439 of the Cr.P.C grants the High Court or Court of Session discretion to grant bail. The court contrasts this with the more rigorous conditions under Section 37 of the NDPS Act. The court finds that the language of Section 37 is amenable to discriminatory application and lacks adequate determining principles, making it arbitrary and unreasonable. The court concludes that the petitioner’s right to bail should not be defeated by the irrational conditions of Section 37, especially given the procedural non-compliance by the police and the petitioner’s previous acquittal in a similar case.

Conclusion:
The court allows the petitioner’s bail application, ordering his release on bail during the trial. The court emphasizes the need for a fair, reasonable, and non-discriminatory procedure in line with Articles 14 and 21 of the Constitution. The petitioner is to be released on furnishing bail bonds/sureties to the satisfaction of the trial court.

 

 

 

 

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