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Issues: (i) Whether post-arrest bail in an offence involving commercial quantity under the NDPS Act could be granted without recording satisfaction of the twin conditions under Section 37(1)(b)(ii). (ii) Whether the High Court was justified in refusing to recall the bail orders under Section 482 of the Code of Criminal Procedure, 1973.
Issue (i): Whether post-arrest bail in an offence involving commercial quantity under the NDPS Act could be granted without recording satisfaction of the twin conditions under Section 37(1)(b)(ii).
Analysis: The grant of bail for offences under the NDPS Act is circumscribed by the statutory mandate in Section 37. Where the prosecution opposes release in a case involving commercial quantity, the court must be satisfied that there are reasonable grounds for believing that the accused is not guilty and is not likely to commit any offence while on bail. Reasonable grounds require more than a prima facie view and the recorded satisfaction is mandatory. The order granting bail was found to have overlooked this requirement and no proper finding under Section 37 was recorded.
Conclusion: The bail order could not be sustained and was set aside.
Issue (ii): Whether the High Court was justified in refusing to recall the bail orders under Section 482 of the Code of Criminal Procedure, 1973.
Analysis: Once the High Court had itself noted that the bail orders were erroneous or passed without proper application of mind, the State's remedy lay in challenge before a superior forum. The invocation of inherent jurisdiction under Section 482 to recall the bail orders was held not maintainable in the manner sought, and the refusal to entertain the recall application was not accepted as a bar to appellate correction of the illegal bail orders.
Conclusion: The refusal to recall did not stand in the way of appellate interference, and the appellate challenge succeeded.
Final Conclusion: The statutory restrictions on bail under the NDPS Act were held to be mandatory, and the respondents were not entitled to continue on bail in the absence of compliance with Section 37.
Ratio Decidendi: In cases involving commercial quantity under the NDPS Act, bail can be granted only upon recorded satisfaction of the twin statutory conditions in Section 37, and any order made without such satisfaction is liable to be interfered with.