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Criminal · Reportable judgment

Serious Fraud Investigation Office vs Aditya Sarda

Court
Supreme Court of India
Date
9 April 2025
Case No.
Criminal Appeal No. 1872 of 2025
Result
Disposed
Bench
Bela M. Trivedi, Prasanna Bhalachandra Varale
Citation
[2025] 5 S.C.R. 485 : 2025 INSC 477
Acts & Sections
IPC CrPC Companies Act, 2013 Limited Liability Partnership Act, 2008 Prevention of Money Laundering Act, 2002
Supreme Court Reports [2025] 5 S.C.R. 485 : 2025 INSC 477
Issue for consideration
Matter pertains to the sustainability of orders passed by the High Court granting anticipatory bail to respondents accused of serious economic offences, and avoiding execution of summons or warrants, disobeying the orders of the Court.
Headnote

Code of Criminal Procedure, 1973 – ss.82, 204, 482 – Anticipatory bail – Avoiding execution of summons or warrants – Appellant-SFIO lodged a complaint before the Special Court against the respondents-accused, alleging serious offences under the Companies Act and IPC – Special court took cognizance of offences and summoned the respondents by issuing bailable warrants – Respondents did not allow bailable warrants to be executed on them – Issuance of non-bailable warrants against the respondents by the Special Court and also proclamation of offenders proceedings initiated against some of the respondents – High Court granted anticipatory bail to the respondents – In case of two respondents, High Court rejected petition seeking cancellation of anticipatory bail granted by Special Court – Sustainability: Held: Orders being perverse and untenable at law, cannot be allowed to be sustained – Respondents avoided the execution of the non-bailable warrants even after their anticipatory bail applications were rejected by Special Court – If accused is creating hindrances in execution of warrants/concealing himself and does not submit to the authority of law, he must not be granted the privilege of anticipatory bail, particularly when court taking cognizance has found him prima facie involved in serious economic offences or heinous offences – High Courts should also consider the factum of issuance of non-bailable warrants and initiation of proclamation proceedings seriously and not casually, while considering the anticipatory bail application of such accused – Though the Special Court had taken cognizance of the alleged offences under the Companies Act including u/s.447 and other offences under the IPC, and even though the non-bailable warrants were issued from time to time against the respondents, as also the proclamation proceedings were initiated against them, the High Court passed the impugned orders, in utter disregard of the mandatory conditions contained in s.212(6) and also ignoring the conduct of the respondents – In none of the impugned orders, the High Court bothered to look into the proceedings conducted, and the detailed orders passed by the Special Court for securing the presence of the respondentsaccused – Judicial time of every court, even of Magistrate’s Court is as precious and valuable as that of the High Courts and the Supreme Court – Accused are duty bound to cooperate the trial courts in proceeding further with the cases and bound to remain present in the Court as and when required by the Court – Not allowing the Courts to proceed further with the cases by avoiding execution of summons or warrants, disobeying the orders of the Court, and trying to delay the proceedings by hook or crook, would certainly amount to interfering with and causing obstruction in the administration of justice – Granting anticipatory bail is certainly not the rule – Respondents who have continuously avoided to follow the due process of law, by avoiding attendance in the Court, by concealing themselves and thereby attempting to derail the proceedings, would not be entitled to the anticipatory bail – Thus, the impugned orders passed by the High Court granting anticipatory bail to the respondents set aside – Companies Act, 2013 – ss.212(6), 447. [Paras 9, 23, 24, 26-30] Companies Act, 2013 – ss. 212(6), 447 – Investigation into affairs of Company by Serious Fraud Investigation Office – Punishment for fraud – Twin conditions for bail: Held: As per s.212(6), offence covered u/s.447 has been made cognizable and the person accused of the said offence is not entitled to be released on bail, unless twin conditions mentioned therein are satisfied – Said twin conditions are mandatory in nature that a Public Prosecutor to be given an opportunity to oppose the application for such release; and where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail. [Para 24] Code of Criminal Procedure, 1973 – s.204 – Issue of process – Summons case – Warrant case – Power of the court to issue bailable or non-bailable warrants:

Read the full headnote (1 more paragraph)

Held: There cannot be a strait jacket formula that the Court must first issue a summons even in case of a warrant case, irrespective of the gravity or seriousness of the offence – Whether the attendance of the accused can be best secured by issuing a bailable warrant or non-bailable warrant, would be a matter, which entirely rests at the discretion of the court – Although the discretion should be exercised judiciously, diverse considerations such as the nature and seriousness of the offence, the circumstances peculiar to the accused, possibility of his concealing or absconding, larger interest of public and state etc. also must be seriously considered by the court. [Para 28]

Keywords: Serious economic offences · Anticipatory bail · Proclamation order · Loss of public funds · Execution of warrants · Twin conditions of bail · Judicial time of court · Avoiding execution of warrants · Obstruction in administration of justice · Avoiding attendance in court · Summons case · Warrants case · Orders perverse and untenable in law · Serious Fraud Investigation Office · Cognizance of offences · Bailable warrants · Issuance of non-bailable warrants · Proclamation of offenders proceedings

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Bela M. Trivedi, J. 1. Leave granted. 2. This batch of sixteen Appeals being interconnected with each other and arising out of the proceedings being CIS No. COMA/5/2019 pending before the Special Judge, Gurugram, are being decided by this common judgment. 3. In these cases, there is a brazen attempt made on the part of the respondents-accused to stall the criminal proceedings initiated against them, in respect of the serious economic offences allegedly committed by them, by not respecting the summons/warrants issued by the Special Court from time to time and thereby causing obstru
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