Statutory bail under Section 167(2) cannot be cancelled merely because a challan is later filed or earlier bail was refused.

Statutory bail granted under the proviso to Section 167(2) of the Code of Criminal Procedure stands on the same footing as bail under Chapter XXXIII, so its cancellation requires a fresh judicial determination under Section 437(5) on recognised grounds. The later filing of a challan, by itself, does not justify arrest or committal to custody, and prior rejection of bail applications on merits is not a relevant basis for cancellation after statutory release. On those principles, the cancellation order was unsustainable and the accused were entitled to remain on bail.

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Issues: Whether bail granted under the proviso to Section 167(2) of the Code of Criminal Procedure, 1973 could be cancelled merely because a challan was subsequently filed and the earlier bail applications had been rejected on merits.

Analysis: The proviso to Section 167(2) requires release on bail on expiry of sixty days if the accused is prepared to furnish bail, and the person so released is deemed to have been released under Chapter XXXIII. On that footing, the release is governed by the scheme of Sections 437(1), 437(2) and 437(5). The mere filing of a challan after release does not by itself justify arrest and committal to custody. Cancellation under Section 437(5) requires the court to consider whether it is necessary to do so on recognised grounds, such as the existence of sufficient grounds after the challan is filed, tampering with evidence, or other interests of justice. The fact that bail had earlier been refused on merits before statutory release under Section 167(2) is not a relevant ground for cancellation under Section 437(5).

Conclusion: Bail granted under Section 167(2) could not be cancelled solely because the police later filed a challan or because earlier bail applications had been rejected; the cancellation order was unsustainable and the appellants were entitled to be released.

Ratio Decidendi: Statutory bail under Section 167(2), once granted, stands on the same footing as bail under Chapter XXXIII and cannot be cancelled without a fresh judicial determination under Section 437(5) on legally relevant grounds.

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