Default Bail Can't Be Claimed On Ground That Investigation Is Pending Against Other Accused: Supreme Court Sets Aside Bail To Wadhwans In DHFL Case

Setting aside the concurring findings of the High Court and the Trial Court, the Bench of Justices Bela Trivedi and Pankaj Mithal noted that Kapil and Dheeraj Wadhawan cannot claim the statutory right of default bail on the ground that the investigation is pending against other accused.

The bench read out the operative portion as follows:

“We have no hesitation in holding that the charge-sheet having been filed against the respondent accused in the prescribed time limit and the cognizance had been taken by the special court of the offences alleged committed by them, the respondents could not have claimed the statutory right of default bail under Section 167 (2) of Cr.P.C. on the ground that the investigation for other accused was pending.”

The judgment authored by Justice Trivedi stated :

"Once from the material produced along with the chargesheet, the court is satisfied about the commission of an offence and takes cognizance of the offence allegedly committed by the accused, it is immaterial whether the further investigation in terms of Section 173(8) is pending or not. The pendency of the further investigation qua the other accused or for production of some documents not available at the time of filing of chargesheet would neither vitiate the chargesheet, nor would it entitle the accused to claim right to get default bail on the ground that the chargesheet was an incomplete chargesheet or that the chargesheet was not filed in terms of Section 173(2) of Cr.P.C"

While allowing the appeal filed by the Central Bureau of Investigation, the Bench observed that the Courts below have erred in providing default bail to the respondents.

The trial court, after considering the relevant materials placed on record, granted default bail to Wadhawans, noting that the charge sheet filed by the CBI is incomplete, just merely as a ruse to defeat the statutory right of default bail to the accused under Section 167 Cr. P.C.

In this context, it may be recalled that the Supreme Court, in its April 2023 judgment in Ritu Chhabaria v. Union of India 2023 LiveLaw (SC) 352 had held the investigating officer cannot file an incomplete chargesheet to defeat the right to default bail. However, a larger bench led by the CJI later ordered that the Trial Courts should not grant default bail relying on Ritu Chhabaria judgment, which the Central Agencies sought to be recalled.

Background

An FIR is lodged under Sections 120B, 409, 420, 477A of IPC, 13(2) r/w 13(1)(d) of PC Act, 1988 (as amended in 2018) against Kapil Wadhawan and Dheeraj Wadhawan, of DHFL on the basis of complaint filed by the DGM of Union Bank of India on behalf of a consortium of 17 banks against Diwan Housing Finance Corporation Ltd. (DHFL). According to FIR, Wadhawan entered into a criminal conspiracy with unknown persons thereby cheating and inducing a consortium of 17 banks led by Union Bank of India (UBI) to sanction huge loans aggregating to Rs. 42,000 Crores approx.

Case Details: CENTRAL BUREAU OF INVESTIGATION VERSUS KAPIL WADHAWAN & ANR.

Citation : 2024 LiveLaw (SC) 58

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