Settlement undertaking default justified cancellation of bail where interim protection was expressly conditional on full payment

The High Court's cancellation of bail and suspension of sentence was upheld because the settlement undertaking was not complied with within the stipulated time. The recorded undertaking expressly made default fatal to the benefit of interim protection, including withdrawal of bail and suspension of sentence. The complainant was not bound by the private inter se arrangement between the two convicted directors on allocation of liability; the accepted settlement concerned only payment of the total agreed amount. As the full amount had not been paid, the condition attached to the grant of protection was triggered and the challenge failed.

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Issues: Whether the cancellation of the order suspending sentence and granting bail was justified on account of non-compliance with the settlement undertaking and the payment schedule accepted before the High Court.

Analysis: The undertaking recorded before the High Court required payment of the settled amount within the stipulated time and expressly provided that default would entail withdrawal of the benefit of bail and suspension of sentence. The complainant was not a party to the inter se arrangement between the two convicted directors regarding division of liability, and the settlement accepted by the complainant was only for the total amount agreed. Since the agreed amount had not been fully paid, the condition attached to the grant of interim protection stood attracted.

Conclusion: The cancellation of bail and suspension of sentence was justified, and the challenge to that order fails.

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