“Shocking State of Affairs” SC Slams Calcutta HC Over Bail Denial Amid Birla-Lodha Group Conflict

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The bench commented on the dispute between the Birla and Lodha groups, noting, “The emergence of such a situation is solely due to the conflict between two influential private entities. It reflects a shocking state of affairs.” The bench directed the Bengal police to present SPES trustee Krishna Damani before the trial court within a week to consider bail under suitable conditions.

NEW DELHI: On May 27th: The Supreme Court slammed Calcutta High Court’s decision to deny bail to a trustee of the South Point Education Society (SPES), amidst an ongoing dispute between the Birla and Lodha groups.

The Court has characterized the situation as a “shocking state of affairs,” particularly since the case falls within the jurisdiction of a magistrate and not a Higher Court.

The vacation bench of Justices A S Oka and Satish C Sharma expressed astonishment, stating,

“How can a person be kept in custody? It is shocking that such matters are now coming to the SC. It is a magistrate-triable case.

Should the accused continue to remain in custody for 10 years? It is very surprising that even in a magistrate-triable case, people are not granted bail, more so when the chargesheet has already been filed. As if these are some crimes against the nation.”

The case, which has drawn attention due to the Birla-Lodha group conflict, has been highlighted by the Supreme Court as emblematic of a broader issue.

The bench noted,

“Only because two powerful private parties are fighting has such a situation arisen. [This is a sorry state of affairs.”

The bench directed the Bengal police to present SPES trustee Krishna Damani before the trial court within a week to consider bail under suitable conditions. When the Bengal counsel suggested expediting the trial instead of granting bail,

The bench responded,

“Denying bail in a magistrate-triable case is unprecedented. We must adhere to fundamental principles. What purpose does custody serve in a magistrate-triable case?”

Senior lawyers A M Singhvi, Mukul Rohatgi, and Mahesh Jethmalani, representing Damani, who is associated with the Birla group,.

Notably, a bench of Justices Sabyasachi Bhattacharyya and Sugato Majlamdar at the High Court declined bail to Damani on May 3, citing concerns regarding the potential for the accused to flee if released on bail as well as the accused’s status and influence relative to potential witnesses in the case. Additionally, the court expressed apprehension about the possibility of the offense being repeated and evidence being tampered with.

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Minakshi Bindhani

LL.M( Criminal Law)| BA.LL.B (Hons)

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