SERIOUS FRAUD INVESTIGATION OFFICE Vs. RAHUL MODI

JUDGEMENT

(1.) Leave granted. The order dated 31.05.2019 passed by the High Court of Punjab and Haryana granting bail to Respondent Nos. 1 and 2 is assailed in this Appeal by the Serious Fraud Investigation Office ("SFIO").

(2.) An investigation was directed to be conducted into the affairs of Adarsh Group of Companies and LLPs by the Central Government in exercise of the powers conferred under Section 212(1)(c) of the Companies Act, 2013 and sub- sections (2) and (3)(c)(i) of Section 43 of the Limited Liability Partnership Act, 2008. Inspectors were appointed by the Director, SFIO to carry out the investigation. Respondent Nos. 1 and 2 were arrested pursuant to the approval granted by the Director, SFIO on 10.12.2018. On 20.12.2018, the High Court of Delhi directed interim release of Respondent Nos. 1 and 2 in Writ Petition (Criminal) Nos. 3842 of 2018 and 3843 of 2018. The order of the High Court was set aside by this Court on 27.03.2019, following which Respondent Nos. 1 and 2 surrendered on 01.04.2019. Respondent Nos. 1 and 2 were remanded to 14 days' judicial custody on 05.04.2019. On account of continuation of the investigation, the Special Court, Gurugram extended the judicial custody of Respondent Nos. 1 and 2 to 16.05.2019. In the meanwhile, Respondent Nos. 1 and 2 filed regular bail applications for being released on bail before the High Court on 03.05.2019. The applications were directed to be listed on 21.05.2019 by the High Court. The High Court further directed the trial court to consider any application that may be filed by Respondent Nos.1 and 2 under Section 167 of the Code of Criminal Procedure, 1973 ("CrPC"), in the meanwhile. On 16.05.2019, the Special Court extended the judicial custody of Respondent Nos.1 and 2 till 30.05.2019.

(3.) Criminal complaint under Section 439(2) read with Section 212(15) of the Companies Act, 2013 was filed before the Special Court, Gurugram on 18.05.2019. The Special Court directed registration of the complaint and listed the matter on 24.05.2019 for considering summoning of the accused persons. Respondent Nos. 1 and 2 filed applications for statutory bail under Section 167(2) of the CrPC on 20.05.2019. The said applications were dismissed by the Sessions Judge, Gurugram on 22.05.2019 on the ground that the complaint under Section 439(2) of the Companies Act, 2013 was filed on 18.05.2019, i.e., before the expiry of the 60-day period prescribed in proviso (a) to Section 167(2) of the CrPC. The High Court considered the regular bail applications filed by Respondent Nos. 1 and 2 on 31.05.2019 and directed their release on bail on the ground that they were entitled to statutory bail. The sole reason given for grant of bail by the High Court is that the trial court has not taken cognizance of the complaint before the expiry of the 60-day period, which entitled Respondent Nos. 1 and 2 to statutory bail, as a matter of indefeasible right.