Criminal Procedure Code (2 of 1974), S.438 – Anticipatory bail – Economic Offences – IPC S. 420, 465, 467, 471 – Allegations that the accused misrepresented as the Company Director, obtained a loan by mortgaging company premises, defrauded customers and the Bank – anticipatory bail discretion should not be exercised lightly in economic offences, large scale offences, cheating, and fraud – Nature and gravity of the offence should be considered – Some offences alleged were punishable with imprisonment up to 7 years, and U/S.467 was punishable with life imprisonment or imprisonment up to 10 years – Anticipatory bail, set aside.
“Power under Section 438 CrPC being an extraordinary remedy, has to be exercised sparingly; more so, in cases of economic offences. Economic offences stand as a different class as they affect the economic fabric of the society.”
- arrest is a part of the investigation process intended to secure various purposes.
- Accused individuals may provide information leading to the discovery of material facts and relevant information.
- Granting anticipatory bail may hamper the investigation.
- Pre-arrest bail aims to balance the individual's right to personal freedom with the investigating agency's need to interrogate the accused and gather more information.
- Custodial interrogation is more effective for eliciting information than questioning a suspect protected by pre-arrest bail.
- Custodial interrogation can uncover many useful facts and materials.
- Effective interrogation may be hindered if the suspect is protected by a pre-arrest bail order.
- The court presumes responsible police conduct during custodial interrogation.
- Arrest may be necessary to question the accused in detail about the crime, prevent disappearance, maintain law and order, and protect witnesses.
- The legality of the proposed arrest cannot be challenged in an application under Section 438 of the Code.
- Courts should not interfere with the investigation or the arrest process when dealing with anticipatory bail applications.
- The Supreme Court has outlined factors and parameters for considering anticipatory bail, including the nature and gravity of the accusation and the exact role of the accused.
- Anticipatory bail should only be granted in exceptional circumstances where the court believes the applicant has been falsely implicated and will not misuse their liberty.
- Economic offences are treated differently, and anticipatory bail is sparingly granted in such cases as they affect the economic fabric of society.
