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        Money Laundering

        2023 (9) TMI 661 - HC - Money Laundering

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        Non-bailable warrant requires recorded reasons before bypassing summons or a bailable warrant; absence of reasons makes it unsustainable. A non-bailable warrant should not be issued at the first instance without recorded reasons showing that summons or a bailable warrant would be ineffective ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Non-bailable warrant requires recorded reasons before bypassing summons or a bailable warrant; absence of reasons makes it unsustainable.

                            A non-bailable warrant should not be issued at the first instance without recorded reasons showing that summons or a bailable warrant would be ineffective or that the accused was deliberately evading process. In complaint proceedings, summons is ordinarily the first process and a bailable warrant is generally the next step before resorting to a non-bailable warrant. Because the impugned order gave no reason for bypassing the lesser process, the exercise of discretion was vulnerable. The gravity of the alleged economic offence could not justify the warrant where no independent basis had been recorded. The non-bailable warrant was therefore held unsustainable and interference was warranted.




                            Issues: Whether the order issuing a non-bailable warrant against the accused was justified when summons had been issued and the court had not recorded reasons for bypassing a bailable warrant.

                            Analysis: The impugned order was examined in the light of the settled principle that issuance of a non-bailable warrant curtails personal liberty and therefore requires careful scrutiny and recorded reasons. In complaint proceedings, summons is ordinarily the first process, and if appearance is not secured, a bailable warrant is generally the next step unless the court is satisfied that the accused is deliberately evading process or that lesser process would be ineffective. The order under challenge contained no reason showing why a bailable warrant was not considered before resorting directly to a non-bailable warrant. The absence of such reasoning made the exercise of discretion vulnerable. The gravity of the alleged economic offence, though relevant in principle, could not justify the impugned order when the court below had not relied upon that ground or recorded any independent basis for issuing the warrant.

                            Conclusion: The issuance of the non-bailable warrant was not justified and the order was unsustainable; interference was warranted.

                            Ratio Decidendi: A non-bailable warrant should not be issued at the first instance unless the court records reasons showing that summons or a bailable warrant would be ineffective or that the accused is deliberately evading the process.


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                            ActsIncome Tax
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