9911796707
TMI Blog2025 (1) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... essor Bench of this Court while deciding the grant of interim bail to the applicants. It would not be impermissible under the law to consider the aspect of grant of regular bail in order to allow the accused applicants to revive the CSL in furtherance to the completion of the pending projects - This Court is well cognizant of the fact that the Courts ought to bear in mind that in a matter of regular bail under Section 439 of the CrPC (now Section 483 of the BNSS), the larger interest of the State must be taken into consideration. Further, a sensitive approach is required to be acquired by the Courts while dealing with the offences constituting economic offences which are increasing plight of this nation as the same impacts the individual roots of the society which is a common man, ultimately leading to minimize the trust of the public in law. Section 212(6) of the Companies Act imposes twin conditions for granting bail to accused persons in cases involving serious frauds investigated by the SFIO. These conditions are, that an offence covered under Section 447 of the Companies Act shall be cognizable and no person accused thereof shall be released on bail or on his own bond unless t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ya Nagarik Suraksha Sanhita, 2023 (hereinafter BNSS )] has been filed on behalf of the applicants/petitioners seeking regular bail in complaint bearing no. CC/1313/2021 titled as Serious fraud Investigation Office v. Cosmic Structures Ltd. Ors. , filed under Sections 129, 134, 143, 144, 147, 447, 448 of the Companies Act, 2013 and Sections 77 (2), 77(4), 211, 217, 227, 233, 628 of the Companies Act, 1956. 2. At the outset, it is pertinent to state that both the captioned bail applications arise out of the same complaint wherein both the applicants have been named as accused and have been assigned similar roles in the aforesaid complaint. Since both the applications contain similar grounds of bail and the same have been opposed by the State on similar grounds, this Court deems it appropriate to adjudicate the captioned applications by way of the instant common order. 3. For the sake of convenience, this Court has culled out the facts, grounds, reply, rejoinder, written submissions and compilations from the BAIL APPLN. 1287/2023, titled as Sushant Mutreja v. Serious fraud Investigation Office . 4. The relevant facts that led to the filing of the instant application are as follows: a. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tigate into the affairs of CSL. The investigation of the SFIO was complete and the investigation report dated 8th October, 2021 was submitted to the MCA on the basis of which the MCA directed the SFIO to file a complaint against the CSL and other accused persons in the complaint case bearing no. CC/1313/2021 before the learned Additional Sessions Judge-03 Special Judge (Companies Act), Dwarka Courts, South West, New Delhi under Sections 129, 134, 143, 144, 147, 447, 447, 448 of the Companies Act, 2013 and Sections 77 (2), 77(4), 211, 217, 227, 233, 628 of the Companies Act, 1956. h. It is alleged in the said complaint that the CSL is a company incorporated on 20th October, 2011 and that the CSL deals in the business of real estate infrastructure projects including consultancy construction of housing commercial spaces. In the said Complaint, it is also alleged that the applicants, i.e. Sushant Muttreja (accused no. 6) and the Nishant Muttreja (accused no. 7) are the actual controlling mind and will of CSL. i. In the said Complaint, it is further alleged that the money invested by the homebuyers/investors was spent recklessly and diverted for reasons which were not in consonance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... W Delhi Bail Granted by Ld. CMM, Tis Hazari Court, Delhi vide dated 18.01.2023 8. 1337/2017 420/406/467/468/471 IPC PS Kotwali Nagar, Muzaffarnagar Bail granted by Hon ble Allahabad High Court 9. 509/2019 420/409/407/408/471/120B/504/50 6 IPC PS Sector 20, Noida Bail granted by Hon ble Allahabad High Court 10. 1284/2017 420/406 IPC PS Noida Phase-III District Gautam Budh Nagar Bail granted by Hon ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 11. 384/2018 420/408 IPC Eco Tech-III, District Gautam Budh Nagar Bail granted by Hon ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 12. 695/2018 420 IPC District Gautam Budh Nagar Bail granted by Hon ble Additional District Judge-IV, Gautam Budh Nagar vide Order dated 19.12.2019 13. Criminal Complaint CC/1313/2021, SFIO 129, 134, 143 r/w 147, 144 /w 147, 447, 448 r/w 447 Companies Act. 2013 and sections 77(2) w 77(4), 211, 217, 227 r/w 233 and 628 of Companies Act, 1956 SFIO Criminal Complaint Bail pending before this Hon ble Court 6. It is submitted that the applicant was first arrested in the FIRs alleging the same allegations arising out of similar facts and circumstances as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat total cash deposits in the account would be a bigger amount as cash deposits between 2011 March, 2013 have not been taken into account. 11. It is submitted that after considering the charge-sheet filed by the respondent, the Coordinate Bench of this Court had granted bail to the applicant in the six FIRs vide order dated 16th December, 2022, . 12. It is also submitted that the Coordinate Bench of this Court, in the aforesaid order, observed in paragraph no. 24 that the chargesheet has since been filed; the trial has not yet begin; there are numerous witnesses to be examined and it would take years to examine them; there is no possibility of dropping of evidence; the petitioners are not at flight risk as their passports have since been surrendered; they were earlier released on interim bail and did not misuse their liberty . The Court further observed in paragraph no. 13 that thus, whatever was received, it is alleged maximum was spent on the construction. The Petitioners are still inclined to co-operate with the investors and time and again are giving various schemes to revive the projects . 13. It is further submitted that the aforesaid order was challenged by the Cosmic Victi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd. Moreover, the applicant has already placed the revival scheme along with all the relevant documents, relevant affidavits duly sworn by the co-developers pertaining to all the six projects before the concerned Company Court as well as this Court. 20. It is submitted that the last date of hearing before the learned ASJ was 5th August, 2024 and the next date of hearing is 17th December, 2024 for the purpose of appearance of the Official Liquidator, scrutiny of documents and further proceedings. Therefore, even after filing the present criminal complaint on 14th October, 2021, the trial of the matter has not yet started and the matter is still at the stage of summoning and scrutiny of documents. 21. It is also submitted that from the above facts, it is likely that the conclusion of the trial of the said complaint will be delayed, owing to which the applicant will be in judicial custody for an undetermined period of time. 22. It is further submitted that the applicant has already served a period of more than 2 years in judicial custody in connection with the said complaint and more than 7 years in judicial custody in connection with other FIRs containing similar allegations arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tly opposed the bail application and submitted that the present applicant is involved in heinous crime of siphoning of funds of the investors/homebuyers/allottees and falsifying books of accounts with the intention to dispute its innocent investors. Therefore, he is not entitled to the concession of bail and if released on the bail he may influence the trial. 29. It is submitted that the CSL had taken advances from more than 6,000 customers totaling to Rs. 524.16 Crores and had shown the WIP of all the projects at Rs. 422.85 Crores as on 31st March, 2015 inclusive of assured return given to the home buyers/investors at Rs. 76.74 Crores. Funds were collected by the CSL under aforementioned three schemes launched by the CSL at the beginning of the construction projects. 30. It is submitted that in order to attract customers, the CSL promised to give an assured return on the mobilized advances at the rate of 10% to 12% per annum payable monthly. Apart from assured return the CSL paid brokerage/commission ranging between from 10-12% of the basic selling price to the brokers or channel partners. An amount of Rs. 76.74 Crores and Rs. 55.18 Crores were paid to the home buyers/investors as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in conditions have not been satisfied. 37. It is further submitted that in the present case, the investigation has thoroughly established that the accused-applicants, Muttreja Brothers, were the mind and will and in direct control of the affairs of the CSL at such time when the homebuyers and investors were lured to invest their money in projects launched by the CSL. 38. It is submitted that the investigation has revealed sufficient incriminating material as duly available on record, to establish both the key ingredients under Section 447 of the Companies Act. Therefore, the applicant-accused s claim that the learned ASJ failed to appreciate that the applicant-accused fulfilled the twin conditions under Section 212(6) of the Companies Act are ill-founded and only misleading, without any sufficient basis or explanation. 39. Therefore, in view of the foregoing submissions, it is prayed that the instant application may be dismissed. 40. Heard learned counsel for the parties and perused the record. This Court has meticulously examined the contentions made in the complaint, instant application, reply, rejoinder, status report, written submissions, compilations of judgments and the Lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eby, proposing a deposit in the form of a Bank Guarantee of Rs. 50 Crores. An affidavit was also filed by the builder stating that it was ready to give upfront Bank Guarantee of Rs. 5 Crores in support of the scheme. Therefore, the bona fide of the applicants is prima facie discernible from the said actions which have been duly stated in the captioned bail applications on affidavit. 46. At this stage, it is pertinent to mention here that the investors/homebuyers/allottees are the real entities/individuals who have been actually affected by the failure of the completion of the projects even after they have paid their due share of amount to some extent. Ultimately, it is the investors who have actually suffered by the hands of the culprits. 47. At the stage of deciding this bail application, this Court is not going into the details of the offences and their merits but is primarily concerned for the investors who have invested substantial amount of their money with the applicants, but have not received any unit/return in lieu of the same. 48. After taking into consideration the entire contents advanced by both the parties, it is observed by this Court that it is a common ground betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Noida 10 acres IT/ITES mixed land use Sirda Homes Pvt. Ltd. Cosmic Urban Young (UY) TS 04, Sector 22D, Yamuna Expressway, Greater Noida 2.5 acres + 2.5 acres Residential Renown ed Buildtech Pvt. Ltd. Cosmic Business Center (CBC/Gurga on) Plot No. 5/9, Sector 35, NH-8, Gurugram 1844 squares meters IT/ITES mixed land use JMS Infra Realty Pvt. Ltd. ( JMS Infra ) 6. Salient Features of the Revival Scheme with respect to Cosmic Masterpiece (CCP3) Project and Cosmic Urban Young Project: 6.1. As per the Scheme, one of the Co-developer namely M/s Renowned Buildtech is taking up the captioned two projects (CCP3 and Cosmic Urban Young) for development. Renowned Buildtech proposed to make an upfront investment of Rs. 35 crores in an Escrow account and shall be used for the purpose of the construction of the said two projects. Out of 35 crores, 10 crores will remain with this Hon ble Company Court in the form of FD till the period when the existing customers are delivered the booked space. Further the Renowned Buildtech will be infusing 50 crores each year for over 3 years i.e. 150 crores as per the requirement of projects, which makes a total of Rs. 185 crores of investment. 6.2. Renowned Bui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 4 projects of the Company and they were successful in involving other Co- developers namely M/s Indihomz Infra LLP for CCP-1 project, M/s Lord Krishna Infracon Pvt. Ltd. for CCP-2 project, Srida Homes Pvt. Ltd. for KP5 project and JMS Infra Realty Pvt. Ltd. (JMS Infra) for CBC project. The duly sworn Affidavits of all the Codevelopers involved in revival of the projects of the Company are already on record before the Hon ble Company Court. 7.2. M/s Indihomz Infra LLP will make an upfront deposit of Rs. 3 crores in an Escrow Account, which will be used for the construction of CCP-1 project as per the requirements. Further, the Co-developer will deploy Rs. 2 crores each month for the completion of the said project. The Codeveloper undertakes to deliver the units booked by the customers in the said project (apart from the Studio Apartments) within 4 years, extendable for a period of 6 months. The Co-developer proposed that they will refund the amount paid by the customers as booking amount for Studio Apartments within 1 year from the date of approval of the Revival Scheme by this Hon ble Company Court or from the date of making an application for refund by the customer, whichever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be subsequently allowed to be utilized towards Project development and construction. A duly sworn Affidavit on behalf of M/s Indihomz Infra LLP is annexed to the present Compilation at pg. 33-35. A duly sworn Affidavit on behalf of M/s Lord Krishna Infracon Pvt. Ltd is annexed to the present Compilation at pg. 28-32. A duly sworn Affidavit on behalf of M/s Srida Homes Pvt. Ltd. is annexed to the present Compilation at pg. 36-38. A duly sworn Affidavit on behalf of M/s JMS Infra Realty Pvt. Ltd. (JMS Infra) is annexed to the present Compilation at pg. 39-42. 8. Common/General features of the Revival Scheme with respect to all 6 projects and their implementation schedule: 8.1. Sincere endeavours will be made to obtain NOCs/approvals within the maximum period of 6 months except where the Co-developer undertakes to obtain it within a period of less than 6 months. 8.2. Projects will be completed within a period of 4 years extendable by a maximum period of 6 months from the date of receipt of revised NOCs/approvals or RERA registration, except where the Co-developer undertakes to complete the project within a period of less than 4 years. In case of delay from the aforesaid period du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors and customers which is prima facie with the objective of ensuring maximization of assets of the unit allotees of the Company and reviving and rehabilitating all six projects to the maximum extent possible before the concerned Company Court. Although this Court is unaware of the current status of the revival scheme, however, the same is showing the bona fide of the applicants. 53. Here, reliance may be placed on the judgment of the Hon ble Supreme Court passed in SEBI v. Sahara India Real Estate Corpn. Ltd., (2014) 5 SCC 429, wherein, the Hon ble Court dealt with a significant issue involving the recovery of money raised by the Sahara entities from investors through optionally fully convertible debentures etc., which deemed to have violated regulatory norms under the Securities and Exchange Board of India Act, 1992. 54. The Hon ble Court was dealing with a similar factual and legal consideration, wherein, it had previously ordered Sahara entities and its chairman to deposit the collected funds with the SEBI for repayment to the investors. Subsequently, Subrata Roy Sahara, the Chairman of the Sahara Group, was taken into custody for non-compliance with these directions. 55 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr Arvind Datar, learned Senior Advocate appearing for the petitioner, submits that the money so far deposited by Saharas be permitted to be refunded to the genuine investors, with interest, after verifying the genuineness of the documents. SEBI may do so. ORDER DATED 8-5-2013 IAs Nos. 68-69 of 2013 in CA No. 9813 of 2011 7. Application praying for filing additional documents is allowed. 8. Heard the counsel for either side. 9. Due to paucity of time, it would not be possible for us to hear the contempt petition and the same stands adjourned to 17-7-2013 at 2.00 p.m. Parties shall complete pleadings in all IAs/petitions before that date. 10. Mr Arvind Datar, learned Senior Advocate appearing for the petitioner, submits that the money so far deposited by Saharas be permitted to be refunded to the genuine investors, with interest, after verifying the genuineness of the documents. SEBI may do so. 11. As far as genuine multiple investors are concerned, the issue be examined on the next date of hearing. Ordered accordingly. ORDER DATED 1-11-2013 IA No. 4 in Contempt Petition (C) No. 260 of 2013 in Civil Appeal No. 8643 of 2012 12. We have heard Mr C.A. Sundaram, learned Senior Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndicating the sources from which they got the money for repayment, as requested vide SEBI s letter dated 28-5-2013. 16. Put up on 9-1-2014 at 2.00 p.m. ORDER DATED 9-1-2014 17. Heard the counsel on either side. 18. Mr C.A. Sundaram, learned Senior Counsel appearing for one of the alleged contemnors, submitted that earlier this Court on 11-12-2013 [See paras 14-16, above.] has only reiterated the submission made by Mr Arvind Datar, learned Senior Counsel appearing for SEBI, that they did not disclose the source from which they got money for repayment, despite SEBI s letter dated 28-5-2013. Mr Sundaram is right in his submission. However, we feel that it would be appropriate to give a direction of the nature stated above. 19. Accordingly, we direct the alleged contemnors to disclose the complete details and source from which they repaid the amount to the investors as also the manner of making payments. They shall also disclose the information which SEBI has sought from them from time to time. Such information shall be provided to SEBI and also be filed in this Court by 23-1- 2014. ORDER DATED 28-1-2014 21. Heard Mr Ram Jethmalani, learned Senior Counsel and Mr Arvind P. Datar, learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 67 of 2013 by a three-Judge Bench of this Court, we direct the personal presence of the alleged contemnors and the Directors of the respondent Companies in Court on 26-2-2014 at 2.00 p.m., on which date the matter will be next taken up. ORDER DATED 26-2-2014 29. This Court passed an order on 20-2-2014 [See paras 27- 28, above.] directing the personal presence of the alleged contemnors and the Directors of the respondent Companies today i.e. on 26-2-2014 at 2.00 p.m. On our directions, Mr Ashok Roy Choudhary, Mr Ravi Shankar Dubey and Smt Vandana Bhargava are present in the Court today. 30. Even though, Mr Ram Jethmalani, learned Senior Counsel appearing for the alleged contemnors, made a mention yesterday i.e. on 25-2-2014, before this Bench for dispensing with the personal presence of Mr Subrata Roy Sahara, alleged Contemnor 5, that request was specifically turned down by this Court. 31. Today, when the matter is taken up, the same request was made by Mr Jethmalani, by moving an application, which was supported by a medical certificate. The said medical certificate was issued by Sahara Hospital and, in our view, the factual position indicated therein does not solicit the exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, etc. furnished by the contemnors, which indicates that they are filing and making unacceptable statements and affidavits all through and even in the contempt proceedings. The documents and affidavits produced by the contemnors themselves would apparently falsify their refund theory and cast serious doubts about the existence of the so-called investors. All the fact-finding authorities have opined that majority of investors do not exist. Preservation of market integrity is extremely important for economic growth of this country and for national interest. Maintaining investors confidence requires market integrity and control of market abuse. Market abuse is a serious financial crime which undermines the very financial structure of this country and will make imbalance in wealth between haves and have-nots. 37. We notice, on this day also, no proposal is forthcoming to honour the judgment of this Court dated 31-8-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 1 SCC 1 : (2013) 1 SCC (Civ) 1 : (2013) 1 SCC (Cri) 257] and the orders passed by this Court on 5-12-2012 [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 2 SCC 733 : (2013) 1 SCC (Civ) 1259 : (2013) 1 SCC (Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013) 2 SCC 733 : (2013) 1 SCC (Civ) 1259 : (2013) 1 SCC (Cri) 1152 : (2013) 1 SCC (L S) 452] and on 25-2-2013 in Sahara India Real Estate Corpn. Ltd. v. SEBI [Sahara India Real Estate Corpn. Ltd. v. SEBI, (2013) 2 SCC 738 : (2013) 1 SCC (Civ) 1264 : (2013) 1 SCC (Cri) 1156 : (2013) 1 SCC (L S) 457] , we are inclined to grant interim bail to the contemnors who are detained by virtue of our order dated 4-3-2014 [See paras 33-38, above.] , on the condition that they would pay the amount of Rs 10,000 crores, out of which Rs 5000 crores to be deposited before this Court and for the balance a bank guarantee of a nationalised bank be furnished in favour of SEBI and be deposited before this Court. On compliance, the contemnors be released forthwith and the amount deposited be released to SEBI. 43. We make it clear that this order is passed in order to facilitate the contemnors to further raise the balance amount so as to comply with the Court s orders mentioned above. Court MasteRs. 57. Perusal of the above makes it clear that it would not be impermissible under the law to consider the aspect of grant of regular bail in order to allow the accused applicants to revive the CSL in furtheranc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir savings in the proposed projects and submits that he cannot have any objection against the Applicants taking sincere steps towards revival of the Company. He, however, submits that in case the Court is inclined to grant interim bail for this limited purpose to the Applicants, it should be without prejudice to the rights and contentions of the Respondent on the merits of the matter and with a caveat that the Applicants be bound by their undertaking that they shall not seek extension of the bail, if granted and the order passed by this Court should not affect the hearing on the regular bail applications, as the allegations against the Applicants are very serious. 8. I have heard the learned Senior Counsel for the Applicants and learned Senior Panel Counsel for the Respondent. From a reading of the averments in the applications, orders passed by the Company Court in Company Petition No. 152/2016, from time to time, including the order dated 24.08.2023, it emerges that various revival Schemes have been offered, but so far nothing has fructified. There can be no gainsaying that liquidation of the Company will not be in the interest of the investors and therefore, the Company Court h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l is an exception , has been elaborately and lucidly explained in a catena of judgments such as Gurbaksh Singh Sibbia v. State of Punjab, (1980) 2 SCC 565 and P. Chidambaram v. Directorate of Enforcement, (2020) 13 SCC 791, wherein, it was held as under: 23. Thus, from cumulative perusal of the judgments cited on either side including the one rendered by the Constitution Bench of this Court, it could be deduced that the basic jurisprudence relating to bail remains the same inasmuch as the grant of bail is the rule and refusal is the exception so as to ensure that the accused has the opportunity of securing fair trial. However, while considering the same the gravity of the offence is an aspect which is required to be kept in view by the Court. The gravity for the said purpose will have to be gathered from the facts and circumstances arising in each case. Keeping in view the consequences that would befall on the society in cases of financial irregularities, it has been held that even economic offences would fall under the category of grave offence and in such circumstance while considering the application for bail in such matters, the Court will have to deal with the same, being sens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar other considerations 64. Thus, it is the judicial discretion of a Court to allow a bail application of an accused charged with non-bailable offences. However, in the instant case, this Court, before proceeding to the conclusion, must deal with the satisfaction of twin conditions given under Section 212(6) of the Companies Act. The relevant portion of the said provision is as under: 212. Investigation into affairs of Company by Serious Fraud Investigation Office. (1) Without prejudice to the provisions of section 210, where the Central Government is of the opinion, that it is necessary to investigate into the affairs of a company by the Serious Fraud Investigation Office *** (6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), 1 [offence covered under section 447] of this Act shall be cognizable and no person accused of any offence under those sections shall be released on bail or on his own bond unless (i) the Public Prosecutor has been given an opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the court is satisfied that there are reasonable grounds for believing that he i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of criminality. 69. The revival schemes, particularly the infusion of funds by third parties and the contention of submission of bank guarantees, signify the applicants focus on addressing investor grievances. This Court is thus satisfied that granting bail will prima facie not create a risk of commission of any other offence, as the applicants, who have spent more than 2 years in custody, are unlikely to jeopardize the pending revival process which is their bone of contention to seek bail. 70. In view of the above, this Court holds that the applicants meet the twin conditions under Section 212(6) of the Companies Act and their release on bail would serve the larger public interest without compromising the ongoing legal proceedings. 71. During the course of arguments, the learned CGSC has also argued that the applicant is already enlarged on interim bail, therefore, for the adjudication of the present regular bail applications, the applicant ought to surrender first. 72. In view of the abovesaid argument, this Court has referred to the various judgments and has arrived to the conclusion of constructive custody in context of interim bail. Constructive custody can be referred to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Cr. P.C. Yet there is no cavil that the accused who has been released on interim bail is deemed to be in the constructive custody of the Court in seisin. In this context, it is apposite to refer in the judgment of the Apex Court in the case of Sundeep Kumar Bafna (Supra). Wherein, the Apex Court quoted with approval its earlier judgment in the case of Directorate of Enforcement v. Deepak Mahajan, (1994) 3 SCC 440 and that of Niranjan Singh v. Prabhakar Rajaram Kharote, (1980) 2 SCC 559; xxx xxx xxx 48. Thus the Code gives power of arrest not only to a police officer and a Magistrate but also under certain circumstances or given situations to private persons. Further, when an accused person appears before a Magistrate or surrenders voluntarily, the Magistrate is empowered to take that accused persons into custody and deal with him according to law. Needles to emphasise that the arrest of a person is a condition precedent for taking him into judicial custody thereof. To put it differently, the taking of the person into judicial custody is followed after the arrest of the person concerned by the Magistrate on appearance or surrender. It will be appropriate, at this stage, to note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered view that directing the applicant to first physically surrender and then proceeding with the adjudication of the instant regular bail applications would not serve any substantial purpose and accepting the argument of the respondent might hinder the applicants ongoing pending efforts to resolve the grievances of the investors by implementing the proposed revival schemes. 77. In view of the above, it is held that the applicants shall be deemed to be in constructive custody and the same is sufficient for the purpose of deciding the captioned regular bail applications. Additionally, the applicants are not required to surrender physically. 78. Therefore, at this stage, for assessing whether an accused is fit for the grant of bail involves numerous factors and this Court is not required to examine the evidence qua the offences available on record, to establish the conviction of the petitioner, rather, it needs to delve into the aspect that whether the continued custody of the applicants serves any purpose for the adjudication of the matter pending before the learned Trial Court. 79. In light of the aforesaid facts and circumstances, this Court is of the view that ensuring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Record in complaint bearing no. CC/1313/2021, it is likely that the conclusion of the trial of the said complaint will be delayed, owing to which the applicant will be in judicial custody for an undetermined period of time. There is no doubt that the investigation will take place sometime and the trial will take further time in completion in view of the documentary evidences and multiple witnesses. 86. Admittedly, the applicant has already served a period of more than 2 years in judicial custody in connection with the said complaint wherein the offences that have been alleged against the applicants have maximum punishment of 10 years. 87. Further, no submission has been advanced by the learned CGSC that the applicants, when released on interim bail, violated or misused the conditions imposed upon them. Additionally, the nominal roll filed on record also state that the conduct of the applicants has remained satisfactory in the jail. 88. Furthermore, while granting interim bail to the instant applicants, in paragraph no. 7 of the order dated 22nd November, 2023, it was noted that the respondent candidly shares the concern regarding the interest of the investors who have infused subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (c) the applicants shall not directly or indirectly make any inducement, threat or promise to any person acquainted with the facts of the case and the applicants shall not tamper with the evidence nor otherwise indulge in any act or omission that is unlawful or that would prejudice the proceedings in the pending trial; (d) the applicants shall provide his mobile number(s) and keep it operational at all times; (e) the applicants shall commit no offence whatsoever during the period he is on bail; (f) in case of change of residential address and/or mobile number, the same shall be intimated to the Court concerned by way of an affidavit; (g) the applicants shall report to the concerned jurisdictional Police Station twice a week, i.e., on every Monday and Friday post their release; and (h) the applicants shall make all efforts for the implementation of the revival scheme of the CSL and its projects, duly approved by the Court concerned, to make good the investors/homebuyers/allotees. 92. Accordingly, the instant regular bail applications stand disposed of. Pending applications, if any, stand disposed of. 93. Copy of this order be sent to Jail Superintendent for compliance. 94. It is ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
