1. FIR for cheating and IT Act offences — Bail granted subject to monetary deposit — High Court refused waiver of the deposit condition. (Para 3 )
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2023 Supreme(SC) 1299
SUPREME COURT OF INDIA
ABHAY S. OKA, PANKAJ MITHAL, JJ.
Shane George Dsouza – Appellant
Versus
State of NCT of Delhi – Respondent
Criminal Appeal No. 3080 of 2023 (Arising out of S.L.P. (Crl.) No. 4016 of 2023)
Decided on : 04-10-2023
Important Points
Imposing a financial deposit as a condition for bail is impermissible and criminal proceedings cannot be converted into recovery proceedings.
Subject
Criminal Law - Bail
Act Referred
Headnote
[BAIL] - [CONDITIONS OF BAIL] - [The court emphasized that imposing a condition of deposit as part of bail is not permissible, reiterating that criminal proceedings should not be turned into recovery proceedings. The court found no justification for the condition requiring a deposit of Rs. 10,00,000/- and set aside that specific clause while upholding other conditions.]
Fact of the Case:
The appellant was accused of cheating involving Rs. 37,00,000/- under various sections of the Penal Code and the Indian Technology Act. The Sessions Court granted bail with a condition to deposit Rs. 10,00,000/- for the victim, which the appellant contested.
Finding of the Court:
The court found that the condition of deposit was unjustified and contrary to established legal principles regarding bail. It reiterated that bail conditions should not convert criminal proceedings into recovery actions.
Issues: Whether the condition of depositing Rs. 10,00,000/- as part of bail is lawful and justified under the circumstances of the case.
Ratio Decidendi: The court held that imposing a financial deposit as a condition for bail is not permissible, as it contradicts the principle that criminal proceedings should not serve as a means for recovery of debts.
Final Decision: The appeal was allowed, and the specific condition of depositing Rs. 10,00,000/- was set aside, while other conditions of bail remained intact.
Legal Category Hierarchy
Table of Contents
2. Appellant sought waiver of the condition requiring a monetary deposit as a prerequisite for the grant of bail. (Para 3 )
3. Imposing a monetary deposit as a bail condition effectively converts criminal proceedings into recovery proceedings, which is impermissible. (Para 4 )
4. A condition requiring the deposit of a monetary sum cannot be imposed as a condition for the grant of bail. (Para 4 )
5. Appeal allowed — Condition for monetary deposit set aside — Other bail conditions maintained. (Para 5 , 6 )
6. Can a monetary deposit be imposed as a condition for the grant of bail?
No, the court held that the condition of depositing a sum of money cannot be a condition of bail. (Para 4 )
7. Can criminal proceedings be converted into recovery proceedings?
No, it is settled law that criminal proceedings cannot be converted into recovery proceedings. (Para 4 )
ORDER
1. Leave granted.
2. Heard the learned counsel appearing for the appellant and the learned senior counsel appearing for the respondent.
3. First Information Report was filed making allegations of commission of offences under Sections 419, 420 and 120B of the Penal Code, 1860 and Sections 66C and 66D of the Indian Technology Act, 2000. The allegation of the prosecution is that the present appellant has cheated the complainant and the amount involved is about Rs. 37,00,000/- (Rupees thirty seven lakhs). The Sessions Court by the order dated 18th January, 2023 granted bail to the appellant subject to the condition of deposit of a Demand Draft in the sum of Rs. 10,00,000/- (Rupees ten lakhs) in the name of the Trial Court. A direction was issued that the Trial Court may release the said amount to the victim. The appellant moved the High Court seeking waiver of the condition of deposit of Rs. 10,00,000/- (Rupees ten lakhs). The High Court rejected the said prayer by the impugned order. However, time to deposit the amount was extended.
4. This Court has repeatedly held that the condition of deposit of such amount cannot be a condition of bail. In this case, the appellant had not volunteered to deposit the sum of Rs. 10,00,000/- (Rupees ten lakhs). The direction in the order dated 18th January, 2023 is not only of imposing a condition on the appellant of bringing a sum of Rs. 10,00,000/- (Rupees ten lakhs) to the Trial Court but a permission has been granted to release the amount to the victim. It is a settled law that criminal proceedings cannot be converted into recovery proceedings.
5. Hence, in the facts of the case, there was no justification for imposing the condition of deposit of Rs. 10,00,000/- (Rupees ten lakhs). Accordingly, the appeal must succeed and we set aside clause (a) of the operative part of the order dated 18th January, 2023 passed by the Additional Sessions Judge-05, New Delhi District, Patiala House Courts, New Delhi. The rest of the conditions shall remain as it is.
6. The appeal is accordingly allowed.
