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2015 Supreme(P&H) 2316
IN THE HIGH COURT OF PUNJAB AND HARYANA
Surya Kant, P.B. Bajanthri, JJ.
STATE OF PUNJAB - Appellant
Vs.
JAGJIT SINGH CHAHAL AND OTHERS - Respondent
CRM-M-15004, 15007 and 15365-2015 (O and M)
Decided On : 07-10-2015
For the Appellant : Reeta Kohli, Addl. AG and Vaibhav Sharma, DAG
For the Respondent:Vikram Chaudhri, Senior Advocate and Harshit Sethi, Adv.
The main legal point established in the judgment is the stringent conditions for bail under the NDPS Act, emphasizing the gravity of drug trafficking offenses and the need to prevent misuse of bail in such cases.
Headnote:
Bail Cancellation - Drug Trafficking - NDPS Act, 1985 - Section 439(2) - 379/411/473/468/471/212/120-B IPC, 21/22/25/25-A/27/29/61/85 of NDPS Act, 1985, 25/54/59 of Arms Act - Summary of the acts and sections referenced and discussed by the court: The court discussed the allegations against the accused under various sections of the Indian Penal Code, NDPS Act, and Arms Act, focusing on the misuse of controlled substances, illegal trade of narcotics, and procedural lapses in the investigation. The court highlighted the provisions of the NDPS Act, including Section 37, and their applicability to the case, emphasizing the gravity of the offenses and the stringent conditions for bail under the Act.
Fact of the Case:
The accused were alleged to have misappropriated controlled substances for illegal drug trade, leading to their arrest and subsequent bail. The State sought cancellation of bail based on the gravity of the offenses and the accused's alleged misconduct.
Finding of the Court:
The court found that the bail granted to one of the accused was erroneous and hampered the investigation, leading to its cancellation. However, the bail granted to the other accused was not found to be misused, and hence, was not cancelled.
Issues: The main issues revolved around the misuse of controlled substances, procedural lapses in the investigation, and the applicability of stringent bail conditions under the NDPS Act.
Ratio Decidendi: The court held that the bail granted to one accused was erroneous and hampered the investigation, justifying its cancellation. However, the bail granted to the other accused was not found to be misused and hence, was not cancelled.
Final Decision: The court allowed the cancellation of bail for one accused and dismissed the cancellation for the other accused.
Surya Kant, J.
These three petitions under Section 439(2) of the Code of Criminal Procedure have been preferred by the State of Punjab for cancellation of the bail granted by a learned Single Judge of this Court vide order dated 22.03.2014, to Jagjit Singh Chahal and his brother Paramjit Singh Chahal in the cases (i) FIR No. 56 dated 15.05.2013 u/s. 379/411/473/468/471/212/120-B IPC, 21/22/25/25-A/27/29/61/85 of NDPS Act, 1985, 25/54/59 of Arms Act registered at Police Station Banur, District Patiala and (ii) FIR No. 109 dated 24.12.2013 u/s. 21/27/29 NDPS Act registered at Police Station Lambra, District Jalandhar.
2. The allegations against Chahal brothers are that they have set up two pharmaceutical industries in the State of Himachal Pradesh at Baddi and Barotiwala, District Solan i.e. (i) M/s. Montek Biopharma and (ii) MBP Pharmaceutical P.Ltd. These units were granted licences by the State Drug Controller, Himachal Pradesh and the Narcotic Control Bureau for manufacture, distribution, sale, purchase, possession, storage and consumption of 'controlled substances' mentioned in Schedule 'A' of the NDPS Act.
3. Chahal brothers are alleged to have misappropriated the two controlled substances of ephedrine and pseudoephedrine supplied to them at concessional rates, for the illicit manufacturing and illegal trade of narcotics/synthetic drugs. The invoices of so-called sale or supply of their manufactured drugs containing these controlled substances, were found either to be fake or the consignees were nonexistent.
4. The prosecution version is that ephedrine and pseudo ephedrine both are major precursor to manufacture Methamphetamine (ICE) and these controlled substances were sold to the drug racketeers at a highly inflated price. The State Police conducted raids, searches and seizures at the residence, office, vehicles and factory premises of Chahals' and is alleged to have recovered huge quantity of contraband. In fact a big racket to manufacture, sale and abuse of synthetic drugs by pharmaceutical units in connivance with drug lords like Jagdish Singh @ Bhola is alleged to have been busted and a string of FIRs were registered. Jagjit Singh Chahal was arrested. Paramjit Singh Chahal could not be arrested as he fled from the scene.
5. The prosecution has alleged that Chahal brothers amassed assets worth more than Rs. 72 crores without the corresponding known sources of income. The Enforcement Directorate as well as the Prescribed Authority under the Prevention of Money Laundering Act have seized their properties on finding that these were acquired from the 'proceeds of crime'.
6. The Drug Controlling Authorities of various States like Tamil Nadu, Andhra Pradesh and Maharashtra etc. have verified that the consignees to whom 'manufactured drugs' are claimed to have been sent either do not exist or the so-called invoices are not genuine. The correspondence between the Drug Controlling Authorities of various States with Himachal Pradesh is relied upon to contend that Chahals have been nailed by different investigating or statutory agencies of Central and State Governments.
7. Chahal brothers, on the other hand, have accused the Punjab Police of misusing its powers and falsely implicating them in concocted cases. The controlled substance supplied to them under valid licences is said to have never been misused and records are meticulously maintained. The Drug Controlling Authority of Himachal Pradesh has periodically inspected those records. The sale of manufactured drugs and such records are claimed to be genuine. It is alleged that neither the Drug Controller-cum-Licensing Authority of Himachal Pradesh nor the local police or any other Department were associated while conducting the search of factory premises.
8. Jagjit Singh Chahal further alleged that he was illegally arrested on the night of 13th November, 2013 from his residence near Amritsar and was illegally detained till he was brought to Police Station, Banur (Patiala) on
