Bail condition modified to permit bank guarantee in lieu of cash deposit; stay on coercive steps maintained.

The matter concerns modification of a bail condition so that the previously ordered cash deposit was substituted with a furnished bank guarantee; the court accepted compliance by production of the guarantee and directed that it remain effective during the pendency of the criminal trial, with the consequence that any breach will forfeit the petitioner's entitlement to the order. The court also recorded that coercive steps are stayed as long as the bank guarantee is kept alive, producing the operative relief in favour of the petitioner.

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Issues: Whether the bail condition requiring deposit of Rs.1 crore could be modified to permit a bank guarantee in lieu of the cash deposit and whether coercive steps stood stayed.

Analysis: The Court noted that a statement made before the Court on the earlier date had been complied with by furnishing a bank guarantee in lieu of the deposit ordered by the trial court and upheld by the High Court. In view of the compliance, the Court substituted the original cash-deposit condition by the bank guarantee and directed that the bank guarantee be kept alive during the pendency of the criminal trial; the Court also recorded that in the event of any breach the petitioner would not be entitled to the benefit of the order.

Conclusion: The bail condition is modified by substituting the cash deposit of Rs.1 crore with the furnished bank guarantee and the stay on coercive steps is effective as directed; relief granted in favour of the petitioner.

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