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2025 Supreme(Ori) 750

IN THE HIGH COURT OF ORISSA AT CUTTACK
G. SATAPATHY, J.
Khirod Kumar Nayak – Appellant
Versus
State of Odisha – Respondent
BLAPL No. 8529 of 2025
Decided On : 16-09-2025

Advocates Appeared:
For the Appellant : A.K. Das
For the Respondent: T.K. Acharya

Right to default bail under Section 167 of the CrPC only arises prior to filing of a charge-sheet; it is not applicable once a charge-sheet has been submitted, even if further investigations are ongoing.

Headnote:(A) Indian Penal Code - Sections 409, 419, 420, 467, 468, 471, 120-B, 34 - Information Technology Act - Sections 66, 66C, 66

(B) - Bail application under Section 483 for offenses of fraudulently securing a loan and online fraud - Allegations included unauthorized transfers and use of forged documents - Court denies bail upon reviewing the seriousness of allegations, absence of changed circumstances from prior bail rejection, and supports refusal based on the gravity of the offense as well as the pending nature of trials. (Paras 1-10)

(B) Default bail - Court clarifies that entitlement exists only before the filing of a charge-sheet and does not apply once the charge-sheet has been submitted, even when further investigation is ongoing. (Paras 4-10)

Table of Content
1. bail application details and allegations. (Para 1)
2. arguments for and against the bail application. (Para 2)
3. assessment of allegations against the petitioner. (Para 3)
4. analysis of default bail provisions and interpretations. (Para 4 , 5 , 6 , 7 , 8 , 9)
5. court's conclusion rejecting bail. (Para 10)

JUDGMENT :

G. SATAPATHY, J.

1. This is a bail application U/S.483 of the BNSS by the petitioner for grant of bail in connection with CID(CB) Cyber Crime PS Case No. 58 of 2024 corresponding to GR Case No.903 of 2024 pending in the Court of learned 2nd Addl. Sessions Judge, Cuttack for commission of offences punishable U/Ss. 409/419/420/467/468/471/120-B/34 of IPC r/w Sections 66 /66C/66(B) of the IT Act, on the main allegation of securing an overdraft loan of Rs. 2.25 Crores fraudulently against the fixed deposit of Rs. 2.5 Crores made by the Informant and transferring the said amount to bank account of his sister and thereafter, transferring it to different accounts through multiple transactions by obtaining the signatures of the Informant surreptitiously on different documents and in the process, cheating her by committing online fraud.

2. In the course of hearing, Mr. Alok Kumar Das, learned counsel for the petitioner, very politely submits that the petitioner is renewing his prayer for bail since investigation is not complete and it has been kept open and thereby, the petitioner having been detained in custody for more than the statutory period 120 days as contemplated U/S.167(2) CrPC/187(3) of BNSS , is entitled to default bail. Mr. Das also submits that since the petitioner is a family man having dependent children and already been confined for some days, the prayer of the petitioner for bail may kindly be considered positively.

2.1. On the other hand, Mr. T.K. Acharya, learned Addl. Public Prosecutor while opposing the bail application of the petitioner submits inter-alia that since the bail application of the petitioner was earlier rejected by this Court on 03.07.2025 in BLAPL No.3243 of 2025 and there being no change in circumstances in the meantime, the prayer for bail of the petitioner may kindly be rejected.

3. After having considered the rival submissions upon perusal of records, there appears allegation against the petitioner for securing an overdraft loan of Rs.2.25 Crores fraudulently against the fixed deposit of Rs.2.5 Crores made by the informant and transferring the said amount to bank account of his sister and thereafter, transferring it to different accounts through multiple transactions by obtaining signatures of the informant surreptitiously on different documents and in the process committing online fraud. The allegation against the petitioner is not only grave, but also serious. It is also not in dispute that the bail application of the petitioner was earlier rejected by this Court on 03.07.2025, but there is no real change in circumstance in the meantime to consider the bail application of the petitioner afresh on merit.

4. In response to the submission for default bail to the petitioner, it appears that the petitioner has relied upon the decision in Ritu Chhabaria Vs. Union of India , Writ Petition (Criminal) No. 60 of 2023 to set up the plea for default bail on the ground of keeping the investigation open U/S.173(8) of the CrPC/193 (9) of the BNSS , but in Directorate of Enforcement Vs. Manpreet Singh Talwar , Special Leave to Criminal No. 5724 of 2023 (with IA No. 90183 of 2023), a three judge Bench of the Apex Court has been pleased to held as under:-

1. we clarify that the order shall not preclude any trial Court or, as the case may be, High Court for considering an application for grant of default bail U/S.167 of the Code of Criminal Procedure 1973 independent of and without relying on the judgment dated 26th April 2023 in Writ Petition (Criminal) No.60 of 2023.”

In proceeding to examine as to whether keeping of investigation open after submitting charge- sheet against some of the

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