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Default Bail Can Be Cancelled On Merits After Filing Of Chargesheet

On 16.01.2023, A division bench of the Hon’ble Supreme Court in Criminal Appeal No. 37 of 2023 titled The State Through Central Bureau of Investigation Vs. T. Gangi Reddy @ Yerra Gangi Reddy has decided a substantial question of law relating to the cancelation of default bail, wherein, Y.S. Vivekananda Reddy, a former M.L.A.; former Member of Lok Sabha; former Member of A.P. Legislative Council; and holding other posts was found dead in his house in 2019. A case under Section 302 read with Section 120-B of the IPC was registered. The State constituted an SIT. During the course of the investigation, the Respondent (Accused1) was arrested. On the expiration of 90 days, Respondent was released on default bail under Section 167(2) of the Cr.P.C.
Investigation into the above crime was entrusted to the Appellant(CBI). The CBI filed the initial/first chargesheet and named A1 to A4. Thereafter, the CBI filed an application before the Special Court under Section 439(2) Cr.P.C. for the cancelation of the bail granted to the Respondent, which came to be dismissed by the learned Trial Court. Thereafter, the CBI filed the Criminal Petition before the High Court under Section 439(2), Cr.P.C. for cancellation of bail granted to the Respondent. The High Court has rejected the said petition mainly on the ground that once the Respondent was released on default bail under Section 167(2) Cr.P.C., thereafter, the bail cannot be canceled on merits. The CBI has preferred an appeal to SC against the impugned judgment and order passed by the High Court. 

The question before SC for consideration:-

Whether the bail granted under Section 167(2), Cr.P.C can be canceled after the presentation of a chargesheet. If yes, then, on what grounds and circumstances, the bail can be canceled?


Hon’ble Supreme Court has observed that a three-judge bench decision in Aslam Babalal Desai Vs. State of Maharashtra, (1992) 4 SCC 272, laid down the following laws,

  1. Release of an accused on default bail under Section 167(2), Cr.P.C. is not on merits, but on the failure of the investigating agency in completing the investigation and filing the chargesheet within the stipulated time prescribed therein;

  2. That every person released on bail under Section 167(2), Cr.P.C. shall be deemed to be so released under the provisions of Chapter XXXIII Cr.P.C., which includes Sections 437(5) and 439(2); 

  3. That the bail in favour of a person, who is released on default bail under Section 167(2) Cr.P.C. cannot be canceled on the mere filing of the charge sheet but can be canceled on making out a special and strong ground that commission of a non-bailable crime is disclosed from the charge sheet.


The Hon’ble Supreme Court has answered in the affirmative and held that in a case where an accused is released on default bail under Section 167(2), Cr.P.C., and thereafter, on the filing of the chargesheet, a strong case is made out and on special reasons being made out from the chargesheet that the accused has committed a non-bailable crime and considering the grounds set out in Sections 437(5) and Section 439(2), his bail can be canceled on merits and the Courts are not precluded from considering the application for cancelation of the bail on merits. However, the mere filing of the chargesheet is not enough, but on the basis of the chargesheet, a strong case is to be made out that the accused has committed a non-bailable crime and he deserves to be in custody.



Cited authorities at the bar - 

  1. Aslam Babalal Desai Vs. State of Maharashtra, (1992) 4 SCC 272

  2. Abdul Basit Alias Raju and Ors. Vs. Mohd. Abdul Kadir Chaudhary and Anr., (2014) 10 SCC 754

  3. Mohamed Iqbal Madar Sheikh and Ors. Vs. State of Maharashtra, (1996) 1 SCC 722

  4. Rakesh Kumar Paul Vs. State of Assam, (2017) 15 SCC 67

  5. Raghubir Singh and Ors. Vs. State of Bihar, (1986) 4 SCC 481.

  6. Rajnikant Jivanlal and Anr. Vs. Intelligence Officer, NCB, New Delhi, (1989) 3 SCC 532)

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