SUPREME COURT OF INDIA
Parvinder Singh Khurana…………Appellant
Vs.
Directorate of Enforcement…………Respondent
Abhay S. Oka & Augustine George Masih, JJ.
Decided on : 23/07/2024
Criminal Procedure Code, 1973
Section 439(2) of CrPC (or Section 483(3) of BNSS)—Bail—Whether High Court or Sessions Court can grant an interim order to stay the operation of a bail order while application for cancellation of bail is pending—Involves interpreting powers under Section 439(2) of CrPC (or Section 483(3) of BNSS)—CBI and ED were involved in investigating appellant—Appellant was not named as an accused, but this changed over time—Special Court granted bail to appellant, who was then subjected to a stay order issued by High Court—Stay continued until it was overturned by Supreme Court.
(Paras 7 to 9)
Cancelling Bail— Legal Grounds—Court clarified that power to cancel bail under Section 439(2) of the CrPC includes ability to stay the bail order—In Gulabrao Baburao Deokar v. State of Maharashtra and Puran v. Rambilas, which establish that a bail order can be stayed if it is unjustified or illegal.
(Para 9)
Constitution of India, 1950
Article 21—Fundamental right—Appellant’s argued that stay order was issued without a proper hearing or detailed reasoning, infringing upon appellant’s fundamental right to liberty as protected by Article 21 of Constitution.
(Para 9)
_Criteria for Granting Interim Stay _
Interim stays—Bail orders—Court emphasized that interim stays of bail orders should be rare and only granted in exceptional cases with strong prima facie grounds—Orders must be accompanied by brief, clear reasons—Exparte stays should not be issued unless absolutely necessary, and accused should be heard promptly on continuation of any interim relief.
(Paras 10, 13)
Court found that interim stay granted on 23rd June 2023 was done exparte and continued for an extended period without proper consideration—This prolonged stay without a merits-based review was deemed inappropriate, as it compromised appellant’s right to liberty—Court ruled in favor of appellant, overturning High Court’s interim stay orders—Bail granted on 17th June 2023 was reinstated, and High Court was directed to continue proceedings on cancellation application while respecting appellant’s bail rights.
(Paras 14, 17, 20, 22)
Decision : appeals allowed