2021 (12) TMI 888 - HC - GST

Court modifies bail conditions due to excessive requirements, orders release of accused on revised terms.

Varinder Singh Versus Directorate General of GST Intelligence, Punjab

Varinder Singh Versus Directorate General of GST Intelligence, Punjab - 2022 (59) G.S.T.L. 279 (P & H) Issues:Accused challenging the conditions of bail bond and surety bond set by the Chief Judicial Magistrate, Ludhiana, and later modified by the Addl. Sessions Judge, Ludhiana.Detailed Analysis:Issue 1: Conditions of Bail Bond and Surety BondThe petitioner, an accused under Section 132(1)(b) of CGST Act, 2017, was released on regular bail under Section 167(2) Cr.P.C. but faced stringent conditions including executing bail bonds/surety bonds. The Chief Judicial Magistrate, Ludhiana, directed him to execute bonds amounting to Rs. 1.10 crores and two sureties of like amount, along with other conditions. The Addl. Sessions Judge, Ludhiana, later modified these conditions, reducing the bond amount to Rs. 30 lakhs each, with two sureties of the same amount, and a bank guarantee of Rs. 20 lakhs. The petitioner found even these modified conditions unjust and beyond his means, leading to this petition under Section 482 Cr.P.C.Issue 2: Justification of Modified ConditionsThe respondent-complainant argued that the modified conditions were justified due to the nature of the economic offence involving a substantial amount of Rs. 15.91 crores. The imposition of bail bond and surety bond for Rs. 30 lakhs each was deemed necessary to ensure the accused's presence and safeguard the complainant's interest. The need for a bank guarantee was also supported to secure potential recovery. Relevant judgments were cited to support this argument.Issue 3: Judicial Principles and Discretion in Granting BailThe Court highlighted the discretionary nature of granting regular bail to accused undertrials, considering factors like the alleged crime's nature, trial stage, and accused's role. Section 167(2) Cr.P.C. provides the right to seek bail if investigation isn't concluded within a stipulated time. The bond amount should be reasonable, not exceeding the accused's means, as per Section 440 Cr.P.C. The accused's right to bail and presumption of innocence were emphasized.Conclusion:The Court found the petitioner's continued detention unjust, especially considering the absence of a filed complaint/charge-sheet within the statutory period. The accused's prolonged custody before explaining charges was deemed unfair. The modified conditions were deemed excessive, and the order dated 15.7.2021 was further modified. The accused was ordered to be released on bail upon executing a bond of Rs. 10 lakhs and two sureties of the same amount, while setting aside the bank guarantee condition of Rs. 20 lakhs.