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Issues: Whether bail in an offence under the Narcotic Drugs and Psychotropic Substances Act, 1985 could be granted without the court first being satisfied that there were reasonable grounds for believing that the was not guilty and that he was not likely to commit any offence while on bail.
Analysis: Section 37 of the Narcotic Drugs and Psychotropic Substances Act, 1985 imposes stringent limitations on grant of bail for specified offences. The court granting bail must record satisfaction on both statutory requirements, namely, reasonable grounds for believing that the accused is not guilty and that he is not likely to commit any offence while on bail. The expression "reasonable grounds" denotes something more than prima facie grounds and requires substantial probable cause based on material sufficient to justify such satisfaction. In considering bail under this provision, the court is not required to return a finding of acquittal, but it must still apply the statutory test and record reasons supported by material. The High Court did not record the required satisfaction on either limb of the statutory test, and also did not sufficiently explain why the recovery was not treated as being from the exclusive possession of the accused.
Conclusion: The bail order was unsustainable; the appeal was allowed, the bail order was set aside, and the matter was remitted for fresh consideration in accordance with Section 37 of the Act.
Final Conclusion: Grant of bail under the NDPS Act must conform to the stringent statutory safeguards, and failure to apply the twin conditions vitiates the order.
Ratio Decidendi: Where a special statute prescribes twin statutory conditions for bail, the court can release the accused only upon recording satisfaction on both conditions on the basis of material showing reasonable grounds and the likelihood of non-repetition of offence.