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Issues: (i) Whether the condition requiring the petitioner to furnish a bail bond and surety of Rs. 50,000 each was excessive and liable to be quashed. (ii) Whether the conditions requiring the petitioner to remain present on all working days for three weeks and not to leave the office during specified hours were illegal and violative of Article 20(3) of the Constitution of India.
Issue (i): Whether the condition requiring the petitioner to furnish a bail bond and surety of Rs. 50,000 each was excessive and liable to be quashed.
Analysis: The amount fixed as bail bond and surety was examined in the light of the nature of the allegation, the gravity of the economic offence, and the fact that the amount had in fact been furnished on the same day. The Court accepted the principle that surety conditions should not be oppressive, but held that the amount fixed in the present case was not unreasonable having regard to the alleged evasion of substantial revenue.
Conclusion: The challenge to Condition No. (i) was rejected and the condition was upheld.
Issue (ii): Whether the conditions requiring the petitioner to remain present on all working days for three weeks and not to leave the office during specified hours were illegal and violative of Article 20(3) of the Constitution of India.
Analysis: The Court found that the petitioner had already been arrested, the grounds of arrest had named him as liable for punishment under the Central Excise law, and he therefore stood in the position of a person accused of an offence. In that situation, he could not be compelled to give incriminating evidence against himself. The impugned conditions, read with the departmental directions, were held to confine his movement in a manner amounting to detention in the guise of bail conditions and to exceed permissible investigative control.
Conclusion: Conditions Nos. (ii) and (iii) were set aside, and the petitioner was required to appear only when summoned and answer questions not tending to incriminate him.
Final Conclusion: The bail conditions were modified: the monetary condition was sustained, but the restrictive attendance and confinement conditions were struck down for infringing the constitutional protection against compelled self-incrimination.
Ratio Decidendi: Bail conditions may regulate appearance and cooperation, but they cannot be so onerous as to become punitive or to compel an accused person, already named in arrest grounds, to provide incriminating evidence in violation of Article 20(3) of the Constitution of India.