THE STATE THROUGH CENTRAL BUREAU OF INVESTIGATION versus T. GANGI REDDY @ YERRA GANGI REDDY

Citation: [2023] 1 S.C.R. 741 · Decided: 16-01-2023 · Supreme Court of India · Bench: M.R. SHAH · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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THE STATE THROUGH CENTRAL BUREAU OF
INVESTIGATION
v.
T. GANGI REDDY @ YERRA GANGI REDDY
(Criminal Appeal No. 37 of 2023)
JANUARY 16, 2023
[M. R. SHAH AND C.T. RAVIKUMAR, JJ.]
Code of Criminal Procedure, 1973 : s. 167(2) – Default bail
– Cancellation of, on merits – On facts, accused-respondent arrested
in connection with the murder of a former MLA, released on default
bail u/s 167(2) – CBI concluded the investigation, filed chargesheet
and then filed for cancellation of bail of the respondent – However,
the High Court rejected the said petition on the ground that default
bail granted u/s. 167(2) cannot be cancelled on merits – On appeal,
held: Order of release on bail under proviso to s. 167(2) cannot be
called as an order on merits – Purpose of proviso to s.167(2) is to
press expeditious investigation within the prescribed time limit –
Accused is released on bail under proviso to s.167(2) on the failure
of the prosecuting agency –Mere filing of the chargesheet
subsequent to a person is released on default bail u/s. 167(2) cannot
be a ground to cancel the bail of a person, who is released on
default bail – No absolute bar that once a person is released on
default bail u/s.167(2), his bail cannot be cancelled on merits – On
filing of the chargesheet on conclusion of the investigation, if a
strong case is made out and on merits, it is found that he has
committed a non-bailable offence/crime, on the special reasons/
grounds and considering ss. 437(5) and 439(2), over and above
other grounds on which the bail to a person, who is released on
bail can be cancelled on merits – Therefore, the courts are not
precluded from considering the application for cancellation of the
bail on merits –Order of the High Court set aside – ss. 174, 437(5),
439(2) – Penal Code, 1860 – ss. 120-B, 201, 302, 506.
Allowing the appeal, the Court
HELD: 1.1 When an accused is released on default bail
under proviso to sub- section (2) of Section 167 Cr.P.C., he is
released on furnishing the bail bond by him on the failure of the
   [2023] 1 S.C.R. 741
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SUPREME COURT REPORTS
[2023] 1 S.C.R.
investigating agency to complete the investigation and file the
chargesheet within the stipulated time mentioned therein. The
proviso to sub-section (2) of Section 167 fixes the outer limit
within which the investigation must be completed and if the same
is not completed within the period prescribed therein, the accused
has a right to be released on bail if he is prepared to and does
furnish bail. Considering proviso to Section 167(2) Cr.P.C., it
cannot be disputed that a person released on bail (default bail) is
deemed to be released under provisions of Chapter XXXIII of
the Cr.P.C., which includes Section 437 and 439 also. The object
and purpose of proviso to Section 167(2) Cr.P.C. is to impress
upon the need for expeditious investigation within the prescribed
time limit and to prevent laxity in that behalf. The object is to
inculcate a sense of its urgency and on default the Magistrate
shall release the accused if he is ready and does furnish bail.
Thus, it cannot be said that order of release on bail under proviso
to Section 167(2) Cr.P.C. is an order on merits. An accused is
released on bail under proviso to Section 167(2) Cr.P.C. on the
failure of the prosecuting agency. Therefore, the deeming fiction
under Section 167(2) Cr.P.C. cannot be interpreted to the length
of converting the order of bail not on merits as if passed on merits
. [Para 8.1][750-H; 751-A-E]
1.2. When special reasons/grounds are being made out from
the chargesheet and the chargesheet reveals the commission of
a non- bailable crime, the bail in favour of a person, who has
been released on default bail under Section 167(2) Cr.P.C. can
be cancelled considering Section 437(5) and Section 439(2)
Cr.P.C. The law, which emerges is that mere filing of the
chargesheet subsequent to a person is released on default bail
under Section 167(2) Cr.P.C. cannot be a ground to cancel the
bail of a person, who is released on default bail. However, on
filing of the chargesheet on conclusion of the investigation, if a
strong case is made out and on merits, it is found that he has
committed a non-bailable offence/crime, on the special reasons/
grounds and considering Section 437(5) and Section 439(2)
Cr.P.C, over and above other grounds on which the bail to a
person, who is released on bail can be cancelled on merits.
Therefore, there is no absolute bar as held by the
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