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Issues: (i) Whether the appellant had made out a prima facie case for grant of bail in view of the supplementary charge-sheet and the material produced during investigation. (ii) Whether the challenges based on the applicability of the bail restriction and the validity of sanction were determinative at the bail stage.
Issue (i): Whether the appellant had made out a prima facie case for grant of bail in view of the supplementary charge-sheet and the material produced during investigation.
Analysis: The prosecution case rested on material collected by the earlier investigating agency, while the later investigation by the NIA recorded material variations, including retractions by witnesses and a different view on the reliance to be placed on confessional statements. The competing versions regarding the alleged conspiracy, the witness statements, and the alleged recovery of RDX created substantial contradictions that could not be finally resolved at the bail stage. The Court also treated the appellant's claim that he had attended meetings in the course of his intelligence duties as a circumstance that could not be brushed aside without trial scrutiny. Balancing the seriousness of the accusation against the prolonged incarceration and the changed evidentiary position, the Court found the case fit for bail.
Conclusion: The appellant was held entitled to bail on a prima facie assessment.
Issue (ii): Whether the challenges based on the applicability of the bail restriction and the validity of sanction were determinative at the bail stage.
Analysis: The Court held that the applicability of the special bail restriction and the validity of sanction were matters that could appropriately be examined at trial and were not decisive for the immediate bail determination. The governing approach required only a prima facie evaluation, together with consideration of the seriousness of the allegation, the possibility of interference with witnesses, and the need to avoid an unduly elaborate examination of evidence at this stage. The Court reiterated that successive bail applications must be considered with reference to fresh grounds and changed circumstances.
Conclusion: These objections were not treated as bars to bail at this stage.
Final Conclusion: The judgment granted bail to the appellant, set aside the High Court's refusal, and left the merits of the prosecution case for trial without affecting the position of other accused persons.
Ratio Decidendi: At the bail stage, where the record shows material contradictions between successive investigative versions and fresh circumstances affecting the evidentiary basis of the case, the Court may grant bail on a prima facie assessment without undertaking a detailed trial-like examination of the merits.