Reasonable monetary security for default bail may be upheld in serious economic offence cases when justified by the facts.

In serious economic offence cases, a court may impose a reasonable monetary security as a condition while granting default bail under Section 167(2) CrPC, if the condition is justified by the facts and circumstances. The Punjab and Haryana HC treated the challenge as limited to the monetary condition, noted that the objection to the appearance condition had been abandoned, and held that the requirement of a bank guarantee or fixed deposit receipt was not illegal or excessive in the context of alleged bogus transactions and input tax credit fraud. The Court distinguished Saravanan because the impermissible condition there required deposit of part of the alleged crime amount, whereas the present condition reflected judicial discretion.

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Issues: Whether the condition requiring the accused to furnish a bank guarantee or fixed deposit receipt of Rs. 50 lakhs while granting default bail under Section 167(2) of the Code of Criminal Procedure, 1973 was unreasonable or contrary to law.

Analysis: The petition challenged only the monetary condition, the objection to the condition regarding change of appearance having been given up. The complaint involved alleged large-scale bogus transactions and input tax credit fraud, and the Court treated the matter as one concerning economic offences, where bail conditions may be applied with greater strictness. The Court distinguished the reliance placed on the decision in Saravanan, noting that in that case the impermissible condition required deposit of part of the alleged crime amount, whereas here the Magistrate had exercised discretion to impose conditions in the facts and circumstances of the case. The impugned condition was held to be founded on sound judicial principles and not excessive in the context of the allegations.

Conclusion: The monetary condition was upheld and no ground was found to interfere under Section 482 of the Code of Criminal Procedure, 1973.

Ratio Decidendi: In cases involving serious economic offences, a court may impose a reasonable monetary security as a condition while granting default bail under Section 167(2) of the Code of Criminal Procedure, 1973, and such a condition is not illegal merely because it is substantial, provided it is justified by the facts of the case.

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