SC, Bail for offence under section 447 of Companies Act set aside as twin conditions of section 212(6) not satisfied: Case of Serious Fraud Investigation Officer vs Aditya Sarda, SC Judgement Dated 9th April 2025. The apex court held that person accused for an offence under section 447 of the Companies Act cannot be released on bail without satisfying mandatory twin conditions prescribed under sub-section (6) of section 212 of the Companies Act. Accordingly, bail granted by High Court set aside.
— Section 447 deals with punishment for frauds. As per section 212(6) the offence covered under Section 447 has been made cognizable and the person accused of the said offence is not entitled to be released on bail or on his bond, unless twin conditions mentioned therein are satisfied. The twin conditions are (i) that a Public Prosecutor should be given an opportunity to oppose the application for such release; and (ii) where the Public Prosecutor opposes the application, the Court is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail. These twin conditions are mandatory in nature. (SC Judgement Dated 09/04/2025)