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Issues: (i) Whether an application for cancellation of bail under Section 439(2) of the Code of Criminal Procedure, 1973 is maintainable even if the accused has not actually been released from custody; (ii) Whether the 2018 amendment to Section 45(1) of the Prevention of Money Laundering Act, 2002 revived the twin conditions for grant of bail in money-laundering offences; (iii) Whether the order granting bail was liable to be interfered with on the ground that the Special Court relied on irrelevant material and ignored relevant material.
Issue (i): Whether an application for cancellation of bail under Section 439(2) of the Code of Criminal Procedure, 1973 is maintainable even if the accused has not actually been released from custody.
Analysis: The expression used in Section 439(2) was construed purposively so that the power of the superior court to examine an unsustainable bail order is not defeated by the accused's non-availing of the bail order. A restrictive reading conditioned on physical release would make the remedy dependent on a fortuity and would narrow the statutory power beyond its text and object. The contrary view was treated as per incuriam in light of earlier co-equal bench reasoning recognising that the order of release on bail becomes effective upon being passed and may be reconsidered under Section 439(2) at any point thereafter.
Conclusion: The application was maintainable despite the accused not having been actually released.
Issue (ii): Whether the 2018 amendment to Section 45(1) of the Prevention of Money Laundering Act, 2002 revived the twin conditions for grant of bail in money-laundering offences.
Analysis: The earlier Supreme Court ruling striking down Section 45 as a whole was treated as governing the field, and the later amendment was held not to revive the invalidated twin conditions for the offence of money laundering. The analysis distinguished authority relied upon by the prosecution and preferred the view that the amended text did not reintroduce the pre-existing restrictive bail regime for PMLA offences.
Conclusion: The twin conditions did not revive and were not applicable to bail in the present money-laundering prosecution.
Issue (iii): Whether the order granting bail was liable to be interfered with on the ground that the Special Court relied on irrelevant material and ignored relevant material.
Analysis: The Court found that the filing of the complaint and the stage of investigation constituted a relevant change in circumstance, but the prosecution had not shown meaningful progress against the accused or any material demonstrating that bail would prejudice the documentary case. The Special Court's assessment that further detention was unjustified was not shown to rest on irrelevant considerations or on disregard of material bearing on bail.
Conclusion: No ground for cancellation of bail was made out.
Final Conclusion: The challenge to the bail order failed on all substantive grounds, and the bail granted to the respondent was allowed to stand.
Ratio Decidendi: Section 439(2) of the Code of Criminal Procedure, 1973 permits scrutiny of a bail order upon its passing and is not conditioned on actual physical release, and an order granting bail will not be cancelled unless it is shown to be legally unsustainable by reason of irrelevant considerations or disregard of relevant material.
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