Back
2024 Supreme(Bom) 364
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
PRITHVIRAJ K. CHAVAN, J.
Hari Sankaran - Applicant
Versus
Serious Fraud Investigation Office Mumbai and Another - Respondents
Criminal Bail Application No. 2937 of 2022 a/w Interim Application No. 4329 of 2023 a/w Interim Application No. 4422 of 2023
Decided On : 07-03-2024
For the Applicant :Mr. Aabad Ponda, Senior Advocate a/w Mr. Vikrant Singh Negi, Ms. Ekta Tyagi, Ms. Anjali Shah, Mr. Pratik Thakkar, Ms. Priyamvada Singhania, Ms. Sneha Barange i/b D.S.K. Legal.
For the Respondents: Mr. H.S. Venegavkar, Special Public Prosecutor a/w Mr. Ayush Kedia, Mr. Pradeep Yadav and Ms. Divya Gontia, Mr. A.A. Palkar, A.P.P.
IMPORTANT POINT
The court considered the right to speedy trial, personal liberty, and the severity of the accused's health condition in granting bail.
Headnote:
BAIL - Prosecution under Companies Act, 2013 and Indian Penal Code - Section 447 of the Companies Act, 2013, Sections 417, 420 r/w 120-B of the Indian Penal Code - 212 (1) (c), 212 (15), 212 (8) of the Companies Act, 2013
Fact of the Case:
The applicant seeks release on bail in connection with Criminal Complaint No.20 of 2019 under Section 447 of the Companies Act, 2013 and Sections 417, 420 r/w 120-B of the Indian Penal Code. The applicant was arrested on 1st April, 2019 and the Special Judge rejected his bail application on 3rd October, 2019.
Finding of the Court:
The court considered the applicant's prolonged incarceration, serious health ailments, and the delay in commencing the trial. It also reviewed medical reports and legal precedents related to bail in similar cases.
Issues: Prolonged incarceration, serious health ailments, delay in commencing the trial, and legal precedents related to bail in economic offences.
Ratio Decidendi: The court granted bail to the applicant based on the prolonged incarceration, serious health ailments, and the delay in commencing the trial. It considered legal precedents and medical reports to support its decision.
Final Decision: The court granted bail to the applicant upon executing a P.R bond and imposing certain conditions.
ORDER :
1. By this application, the applicant seeks his release on bail who is being prosecuted by the Serious Fraud Investigation Office, Mumbai (for short, “SFIO”) in connection with Criminal Complaint No.20 of 2019 in File No. SFIO/INV/UNIT – V/1003/IL & FS/2018-19 pending before the Special Judge for the offences punishable under Section 447 of the Companies Act, 2013 (for short “Act of 2013”) and Sections 417, 420 r/w 120-B of the Indian Penal Code, 1860 (for short “I.P.C”).
2. Shorn of unnecessary details, a few facts germane for disposal of this application, can be summarized as follows.
3. There are 30 accused arraigned by respondent No.1 – SFIO in the aforesaid criminal complaint. The applicant is accused No.3. The genesis of the case is an order of investigation passed by the Central Government i.e Ministry of Corporate Affairs whereby the said Ministry in the public interest on the basis of cogent material, framed it’s opinion that investigation into the affairs of the several companies i.e Infrastructure Leasing and Financial Services Limited (IL & F.S) and it’s subsidiary companies is necessary to be conducted by SFIO and accordingly passed an order bearing Order No. 03/679/2018/CL-II (WR) dated 30th September, 2018 in this regard in exercise of it’s powers under Section 212 (1) (c) of the Companies Act, 2013.
4. Pursuant to an order of the Ministry, a team was appointed for carrying out the aforesaid investigation. During investigation, it revealed that IL&FS Financial Services Ltd (hereinafter referred to as “IFIN’) is one of the subsidiary companies of the IL&FS Group, whose investigation has also been ordered by the Ministry of Corporate Affairs. Having conducted the investigation, a report dated 28th May, 2019 along with all it’s annexures came to be filed.
5. As per Section 212 (15) of the Act of 2013, investigation report came to be filed in the Special Court for framing charges against all the accused.
6. The applicant came to be arrested on 1st April, 2019 under Section 212 (8) of the Act of 2013. The Special Judge rejected his application for bail vide an order dated 3rd October, 2019.
7. I heard Mr. Aabad Ponda, learned Senior Counsel appearing for the applicant as well as Mr. Venegavkar, Special Public Prosecutor at a considerable length.
8. Dehors merits, arguments of learned Senior Counsel revolves around two aspects viz: long incarceration of the applicant without any hope of commencing the trial at least for a few years and, secondly, serious ailments with which the applicant has been suffering at the age of 62 years.
9. Mr. Ponda would argue that the long incarceration of the applicant ever since his arrest on 1st April, 2019 is in gross violation of his fundamental right under Article 21 of the Constitution despite rigours of twin conditions in view of section 212 (6) of the Act of 2013. By 31st March, 2024, he would be completing five years behind the bars and he is the only person in the custody out of the accused who are being prosecuted by the respondent No.1. Learned Senior Counsel would invite my attention to a number of medical reports to substantiate his contention as regards various ailments of the applicant and the nature of treatment being administered to him by specialized Doctors.
10. Mr. Ponda would also invite my attention that maximum sentence for the offence under section 447 of the Act of 2013 as well as for the offences under Sections 417, 420 r/w 120-B of the I.P.C would be 10 years and, therefore, even otherwise having undergone half of the maximum sentence, the applicant is entitled to be released on bail. The Counsel would further argue that the trial Court itself has taken more than four and half years to take cognizance of the case and, therefore, the applicant is not at all responsible for the delay in commencing the trial.
11. As regards deteriorating health of the applicant, my attention is invited to the medical certificates by contending that as many as ten stents have been imp
