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GST - Highlights / Catch Notes

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The Court held that imposing a condition of furnishing a bank ...


Court Declares Bank Guarantee for Bail Illegal, Encourages Other Valid Conditions Instead.

October 23, 2024

Case Laws     GST     HC

The Court held that imposing a condition of furnishing a bank guarantee while granting bail is illegal. The Apex Court, in Subhash Chouhan v. Union of India, ruled that directing the appellant to deposit a sum as a condition for bail is not sustainable and should be set aside. The Court observed that it encounters numerous cases where Courts impose an illegal condition of furnishing a bank guarantee of any quantum while granting bail, leading to unnecessary litigation. The Court deemed it appropriate to clarify that Courts shall not insist on furnishing a bank guarantee for release on bail. However, Courts are free to impose other legally tenable conditions. The criminal petition challenging the condition of furnishing a bank guarantee was allowed.

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