2023 (3) TMI 1385 - SCH - GST

Grant of Conditional Bail - payment of substantial sum ordered as a pre-condition for grant of bail - seeking that bail prayer has to be considered on the basis of the merit of the petition - HELD THAT - The bail order given to the petitioner stands confirmed. Requirement of deposit of amount shall not be precondition for release on bail. However, other conditions are left undisturbed and shall be complied by the petitioner. Application disposed off.

Summary

Issues involved: Grant of conditional bail with monetary conditions

Issue 1: Validity of monetary conditions for grant of bail
The petitioner was granted conditional bail by the Bombay High Court with the condition to deposit a sum of Rs.10 crores followed by another Rs.15 crores within specified timelines. The petitioner challenged these conditions, arguing that the payment of such substantial sums should not be a pre-condition for the grant of bail, and the bail application should be considered on its own merit. The Supreme Court, after hearing both parties, confirmed the bail order but held that the specific monetary conditions imposed by the High Court should not be a pre-condition for release on bail. Other conditions were to remain in place for compliance by the petitioner.

Issue 2: Judicial interpretation of bail conditions
The Supreme Court emphasized that bail applications should be evaluated based on their individual merits, and the deposit of large sums of money should not be a mandatory requirement for the grant of bail. The Court clarified that while certain conditions may be imposed for ensuring compliance and safeguarding interests, the primary consideration for granting bail should be the merits of the case and not the monetary aspect. By setting aside the specific monetary conditions in this case, the Court reaffirmed the principle that bail should not be contingent upon the payment of substantial sums of money.

Issue 3: Disposition of the petition
In light of the submissions made by both parties regarding the monetary conditions imposed for bail, the Supreme Court decided to confirm the bail order granted to the petitioner while setting aside the specific monetary conditions of Rs.10 crores and Rs.15 crores as pre-conditions for release on bail. The Court maintained that other conditions attached to the bail order were to be complied with by the petitioner. Any pending applications were deemed disposed of by the Court's decision in this matter.