Bail under the Companies Act: twin conditions did not bar release where the accused was never arrested during investigation.

Section 212(6) of the Companies Act, 2013, read with section 212(7), generally imposes twin conditions for bail in serious company-law offences, but that restriction was not treated as an automatic bar where the accused had not been arrested during investigation and was taken into custody only after appearance on summons. Applying the principle in Satender Kumar Antil, the court noted that if arrest was not considered necessary during investigation, custody need not follow mechanically on summons. Bail was granted on the facts, supported by completed investigation, no allegation of non-cooperation, witness intimidation or tampering, and bail already granted to a co-accused.

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Issues: Whether bail ought to be granted to an under section 447 of the Companies Act, 2013 in view of the restrictions in section 212(6) of the Companies Act, 2013 when the accused was not arrested during investigation and was taken into custody only upon appearance pursuant to summons.

Analysis: The bail restriction under section 212(6) of the Companies Act, 2013 operates with the additional limitation in section 212(7) and normally requires satisfaction of the twin conditions. However, the accused in this case was not arrested during investigation and the investigating agency did not seek custody. The custody arose only after appearance before the trial court on summons. In such a situation, the principle recognised in Satender Kumar Antil and applied to special statutes indicates that where arrest during investigation was not considered necessary, there is no automatic requirement of taking the accused into custody after summoning. The court also noted the absence of any allegation of non-cooperation, witness intimidation, or tampering with evidence, and relied on the completed investigation and the prior grant of bail to a co-accused.

Conclusion: Bail was granted to the applicant, and section 212(6) did not bar release on the facts of the case.

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