Criminal Procedure Code, 1973
Section 439—Regular bail—Offence under Companies Act—Gravamen of offences alleged under Section 447 of the Companies Act are that company indulged in cash sales, in fictitious sale of food grain and in creation of accommodation/adjustment accounting entries, apart from misuse of cheque discounting facilities—Petitioner-director has been implicated for his role as an “officer who is in default” within the meaning of Section 2(60) of the Companies Act—Incarceration must be for some justifiable and articulated reason, based upon material available against a person—Twin-conditions in Section 212(6) of Companies Act would not apply to a case where accused has never been arrested even till the stage of cognizance, and appears against summons issued by the court—Petitioner had not been arrested throughout the course of investigation and appeared before Special Judge against summons – not arrest warrants – issued to him—Since the Investigating Officer did not arrest the petitioner during the more than six year long proceedings and investigation, evidently, the Investigating Officer did not consider it necessary to do so based on the material in his possession collected in the course of investigation—Seriousness of allegations is not the only test or factor to deny bail—Trial in the matter is bound to take considerable time—No reason found to wait for further time to elapse before lamenting that petitioner has suffered pre-trial detention for an unduly long period—Bail granted subject to conditions. [Companies Act, 2013, Sections 2(60), 212 & 447]
[Paras 27 & 28]
Criminal Trial
Economic Offences—Economic offences are serious in nature—Allegations against petitioner and other co-accused, if proved at the trial, must be met with requisite punishment—However, that punishment must follow conviction, and severity of allegations by themselves cannot be justification for pre-trial incarceration.
[Para 30]