The Supreme Court ordered judicial training for two Delhi judges after they mishandled bail in a Rs.6 crore cheating case, stressing, “We would be failing in our duty if we turned a blind eye” to such errors.
The Supreme Court criticized the manner in which bail was granted to a couple accused of defrauding a private company of over Rs.6 crore.
A Bench comprising Justices Ahsanuddin Amanullah and SVN Bhatti determined that both the Additional Chief Metropolitan Magistrate (ACMM) and the Sessions Judge at Karkardooma Court failed to adhere to established legal principles when granting and upholding bail for the accused.
The Court mandated that both judicial officers undergo a minimum of seven days of training at the Delhi Judicial Academy.
Additionally, it ordered a departmental investigation into the conduct of the investigating officer, citing significant lapses on the part of the police.
The Court remarked that the investigating officer’s stance during the bail proceedings “spoke volumes,” directing the Delhi Police Commissioner to personally investigate the officer’s involvement and take appropriate action.
The case stemmed from allegations that the couple had taken Rs.1.9 crore under the promise of transferring land but later refused to return the money when it was revealed that the land had already been sold and mortgaged. With accrued interest, the company claimed its total dues had exceeded ₹6 crore.
A complaint filed in 2017 resulted in the registration of a first information report (FIR) in 2018. The couple’s request for anticipatory bail was denied by the Delhi High Court in 2023, which strongly criticized their actions. The High Court noted that the couple had misled the courts for years with false promises to repay the amount while enjoying interim protection from arrest.
Despite this, the ACMM granted them regular bail in November 2023, arguing that the filing of the chargesheet eliminated the need for custody. The Sessions Judge upheld this decision in August 2024, and the Delhi High Court also declined to intervene.
The Supreme Court disapproved of this reasoning, observing that the lower courts overlooked the accused’s previous misconduct and failed to take into account the High Court’s earlier comments.
The Bench emphasized that bail decisions should be based on facts and conduct rather than mechanical reasoning.
The Court stated,
“Bail matters are primarily to be adjudicated on the facts and circumstances, before applying any principle of law. In light of the glaring factual matrix, bail ought not to have been granted,”
The judges further pointed out procedural irregularities, noting that while the accused had formally appeared before the magistrate in October 2023, they were allowed to leave without any interim release order until bail was granted in November.
In light of these lapses, the Bench annulled the bail orders from the ACMM, the Sessions Judge, and the High Court, directing the accused to surrender within two weeks. The Court emphasized that its directives were intended to uphold accountability and judicial discipline, not to undermine principles of liberty.
The Court ordered,
“We would be failing in our duty if we turned a blind eye to the manner in which the ACMM granted bail to the accused and the Sessions Judge refused to interfere with such grant of bail. The Judicial Officers who passed the Orders dated 10.11.2023 and 16.08.2024 shall undergo special judicial training for a period of at least seven days,”
The complainant was represented by Senior Advocate Jitendra Sethi, alongside advocates Keshav Sethi, Bharat Kashyap, and Anmol Anand.
The State was represented by Additional Solicitor General SD Sanjay, Senior Advocate Nachiketa Joshi, and other advocates including Shubham Prakash Mishra, Subh Sharma, Mukesh Kumar Maroria, Digvijay Dam, BK Satija, Santosh Kumar, Aaditya Dixit, and Abhinav Mishra.
The private respondent represented by Senior Advocate Shoeb Alam and advocates Chayan Sarkar, Arshnit Sandhu, Karan Bindra, and Rajesh Sharma.
Case Title: M/S Netsity Systems Pvt Ltd. vs. The State Govt. of NCT of Delhi & Anr.
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