Supreme Court Allows Prosecution Appeal in Bail Cancellation Case, Holding Default Bail Can Be Cancelled on Merits After Chargesheet. Bail granted under Section 167(2) CrPC is deemed under Chapter XXXIII, permitting cancellation under Section 439(2) CrPC based on special grounds and seriousness of offences post-investigation.

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Case Note & Summary

The appeal arose from a judgment of the High Court of Andhra Pradesh dismissing a petition by the Central Bureau of Investigation under Section 439(2) of the Code of Criminal Procedure to cancel bail granted to the respondent, who was original Accused No. 1 in a murder case. The deceased, a former MLA and MP, was found dead on 15 March 2019, leading to registration of a case under Section 302 read with Section 120-B IPC. The respondent was arrested on 28 March 2019 and, after the statutory 90-day period lapsed on 26 June 2019, was granted default bail under Section 167(2) CrPC on 27 June 2019 by the JMFC, Pulivendula. Subsequently, investigation was transferred to the CBI, which filed chargesheets and sought cancellation of bail under Section 439(2) CrPC, but the Trial Court and High Court dismissed the applications, with the High Court holding that default bail cannot be cancelled on merits. The core legal issue was whether bail granted under Section 167(2) CrPC can be cancelled on merits after investigation concludes and chargesheet is filed. The CBI argued that default bail is not on merits but due to investigation default, and under the deeming fiction in Section 167(2), it is deemed released under Chapter XXXIII CrPC, allowing cancellation under Sections 437(5) or 439(2) on special grounds post-chargesheet. The court analyzed the provisions and precedents, including Aslam Babalal Desai v. State of Maharashtra, emphasizing that default bail is a statutory right arising from investigation delay, not a merit-based decision, and the deeming fiction enables cancellation under Chapter XXXIII. The court held that bail can be cancelled on merits after chargesheet, setting aside the High Court's order and remanding the matter for fresh consideration on merits.

Headnote

A) Criminal Procedure - Bail - Default Bail Cancellation - Code of Criminal Procedure, 1973, Sections 167(2), 439(2) - Appellant CBI sought cancellation of bail granted to accused under Section 167(2) CrPC after filing chargesheet - High Court dismissed petition holding default bail cannot be cancelled on merits - Supreme Court held default bail is not on merits but due to investigation default, deemed under Chapter XXXIII, and can be cancelled under Section 439(2) on special grounds after chargesheet (Paras 1-5).

B) Criminal Procedure - Bail - Deeming Fiction - Code of Criminal Procedure, 1973, Sections 167(2), 437(5), 439(2) - Issue pertained to interpretation of deeming fiction in Section 167(2) CrPC for bail cancellation - Court reasoned that default bail under Section 167(2) is deemed released under Chapter XXXIII, which includes Sections 437 and 439, allowing cancellation under Section 437(5) or 439(2) - Held that deeming fiction does not convert default bail into merit-based bail, enabling cancellation on merits post-chargesheet (Paras 5.1-5.2).

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Issue of Consideration

Whether after an accused is released on default bail under Section 167(2) CrPC, his bail can be cancelled on merits after conclusion of investigation and filing of chargesheet

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Final Decision

Supreme Court allowed the appeal, set aside the High Court's order, and remanded the matter for fresh consideration on merits of bail cancellation under Section 439(2) CrPC

Law Points

  • Default bail under Section 167(2) CrPC is not on merits but on default of investigation
  • deemed release under Chapter XXXIII CrPC
  • cancellation permissible under Section 439(2) CrPC on merits after chargesheet
  • special grounds required for cancellation
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Case Details

2023 LawText (SC) (1) 47

CRIMINAL APPEAL NO. 37 OF 2023

2023-01-16

M.R. Shah

Shri K.M. Nataraj

Central Bureau of Investigation (C.B.I.)

T. Gangi Reddy @ Yerra Gangi Reddy

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Nature of Litigation

Criminal appeal against High Court order dismissing bail cancellation petition

Remedy Sought

CBI seeking cancellation of bail granted to accused under Section 167(2) CrPC

Filing Reason

High Court held default bail cannot be cancelled on merits after chargesheet

Previous Decisions

JMFC granted default bail on 27.06.2019; Trial Court dismissed cancellation application on 30.11.2021; High Court dismissed petition on 16.03.2022

Issues

Whether after an accused is released on default bail under Section 167(2) CrPC, his bail can be cancelled on merits after conclusion of investigation and filing of chargesheet

Submissions/Arguments

Default bail is not on merits but due to investigation default, deemed under Chapter XXXIII CrPC, cancellable under Section 439(2) on special grounds post-chargesheet High Court erred in holding default bail cannot be cancelled on merits

Ratio Decidendi

Default bail under Section 167(2) CrPC is not a merit-based bail but arises from investigation default; it is deemed released under Chapter XXXIII CrPC, allowing cancellation under Section 437(5) or 439(2) on special grounds after chargesheet is filed.

Judgment Excerpts

once the respondent No. 1 – Accused No. 1, was released on default bail under Section 167(2) Cr.P.C., thereafter it is not permissible to consider the case for cancellation of bail on merits grant of default bail under the proviso to sub-section (2) of Section 167 Cr.P.C. is deemed to be released in terms of Chapter XXXIII of the Cr.P.C.

Procedural History

Deceased found dead on 15.03.2019; case registered under Section 174 CrPC and later Section 302 read with 120-B IPC; respondent arrested on 28.03.2019; granted default bail on 27.06.2019; investigation transferred to CBI; CBI filed chargesheets and sought bail cancellation under Section 439(2) CrPC; Trial Court dismissed on 30.11.2021; High Court dismissed petition on 16.03.2022; Supreme Court appeal filed.

Acts & Sections

  • Code of Criminal Procedure, 1973: 167(2), 439(2), 437(5), 174, 439
  • Indian Penal Code, 1860: 302, 120-B, 201, 506
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