No Bail For Offence Under S.447 Companies Act 2013 Without Fulfilling Twin Conditions
The Supreme Court held that bail, including anticipatory bail, cannot be granted for an offence under Section 447 (punishment for fraud) of the Companies Act 2013 unless twin conditions are satisfied.
Section 212(6) (investigation into affairs of Company by Serious Fraud Investigation Office) of the Companies Act states that the offences covered under Section 447 are cognisable in nature and no person can be released on bail unless he satisfies the twin conditions, that are: (1)that a Public Prosecutor should be given an opportunity to oppose the application for such release; (2)where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that the person is not guilty and is unlikely to commit any offence while on bail.
The Supreme Court while cancelling their bail, noted that the High Court, in its impugned judgments, failed to note the conduct of the accused persons who refused to cooperate with the authorities.
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 obstruction in the administration of justice.
Case Details: SERIOUS FRAUD INVESTIGATION OFFICE v. ADITYA SARDA|
