Supreme Court Reiterates: Grant of Bail Should Not Be Subject to Deposit of Money

By Vanita Supreme Court
8 Min Read

The Supreme Court of India has once again clarified an important principle governing bail jurisprudence: courts must not impose monetary deposit conditions while granting regular or anticipatory bail. In PRANTIK KUMAR & ANR v. THE STATE OF JHARKHAND & ANR., the Court set aside the conditional anticipatory bail orders of the Jharkhand High Court and emphasised that bail must be decided strictly on merits rather than on the assurance of payment or settlement. The decision strengthens the constitutional philosophy of personal liberty and ensures that financial capacity does not become a barrier to freedom.

Background of the Case

The matter arose from a cheating complaint in which the accused, a father and son, were alleged to have failed to pay approximately ₹9 lakh after purchasing craft paper. An FIR was registered against them, and apprehending arrest, they approached the Sessions Court seeking anticipatory bail. Their plea was rejected, prompting them to move the Jharkhand High Court.

While considering their bail application, the High Court passed orders directing the accused to file a supplementary affidavit demonstrating payment of ₹9,12,926.84 to the complainant. The High Court further indicated that failure to show proof of payment would lead to dismissal of the anticipatory bail plea. These directions effectively made payment of money a precondition for the grant of bail.

Challenging these orders, the accused approached the Supreme Court through a Special Leave Petition.

Issues Before the Supreme Court

The central issue before the Supreme Court was whether a High Court could impose a condition requiring deposit or payment of money to the complainant while deciding an application for anticipatory bail.

The bench comprising Justice JB Pardiwala and Justice KV Viswanathan examined whether such a condition violated established principles governing bail under criminal law.

Supreme Court’s Observations

At the outset, the Court described the High Court’s orders as “unusual,” noting that they ignored settled legal principles laid down by the Supreme Court itself. The bench expressed concern that despite repeated judicial guidance, courts continue to impose financial conditions while granting bail.

The Court reiterated that bail decisions must be based on the merits of the case, such as the nature of allegations, risk of absconding, possibility of tampering with evidence, and cooperation with investigation. Monetary deposits or directions to settle civil disputes cannot form the basis of granting or refusing bail.

Referring to its earlier judgment in Gajanan Dattatray Gore v. State of Maharashtra (2025), the Court emphasised that judicial discretion in bail matters must be exercised independently of any assurance of payment or compromise between parties.

Key Legal Principles Reaffirmed

1. Bail Cannot Be Conditional on Payment

The Court categorically held that courts should not require an accused to deposit money or repay alleged dues as a precondition for anticipatory or regular bail. Such conditions blur the distinction between criminal liability and civil recovery.

2. Adjudication Must Be on Merits

If a case for bail is made out, courts must grant it; if not, they may refuse it. However, they cannot adopt a middle path by imposing monetary conditions that effectively compel settlement.

3. Protection of Personal Liberty

The ruling reinforces Article 21 of the Constitution, which protects personal liberty. Imposing financial conditions may disadvantage economically weaker accused persons and create unequal access to bail.

4. Consistency with Precedents

The Court criticised the High Court for overlooking binding precedents, reminding subordinate courts that Supreme Court judgments must be followed to maintain uniformity in criminal justice administration.

Court’s Final Directions

The Supreme Court set aside the conditional orders passed by the Jharkhand High Court. It directed that in the event of arrest, the accused persons be released on bail subject to standard conditions imposed by the investigating officer. Additionally, the Court instructed its Registry to forward a copy of the order to the Chief Justice of the Jharkhand High Court, indicating the seriousness with which it viewed the issue.

Legal Analysis: Bail vs. Monetary Settlements

The decision draws a clear line between criminal proceedings and civil recovery. Courts have often cautioned against converting bail hearings into mechanisms for debt recovery. When courts impose payment conditions, they risk coercing the accused into settlements even before guilt is established.

From a doctrinal perspective, anticipatory bail under Section 438 CrPC (now mirrored in the Bharatiya Nagarik Suraksha Sanhita) aims to protect individuals from arbitrary arrest, not to enforce financial obligations. The Supreme Court’s ruling ensures that the presumption of innocence remains central to bail jurisprudence.

Impact on Future Bail Jurisprudence

This judgment is likely to influence how High Courts and Sessions Courts frame bail conditions in economic offences and cheating cases. Some important implications include:

  • Uniformity in Bail Orders: Courts must avoid innovative conditions that indirectly compel payment.
  • Safeguarding Rights of Accused: Financial incapacity should not determine access to liberty.
  • Clear Separation of Civil and Criminal Remedies: Complainants seeking recovery must pursue appropriate civil proceedings rather than rely on criminal bail conditions.

The ruling also signals judicial intolerance towards deviations from settled precedent, highlighting the Supreme Court’s supervisory role over lower courts.

Broader Constitutional Significance

Beyond procedural law, the decision reinforces constitutional values of fairness and equality. Monetary conditions disproportionately affect accused persons from weaker economic backgrounds, potentially leading to unjust incarceration. By reiterating that liberty cannot depend on financial capacity, the Court has aligned bail jurisprudence with substantive equality principles.

The judgment also reflects the Court’s consistent approach in recent years to curb excessive or impractical bail conditions, ensuring that judicial discretion remains structured by constitutional safeguards.

Conclusion

The Supreme Court’s decision in PRANTIK KUMAR & ANR v. STATE OF JHARKHAND serves as a significant reminder that bail cannot be transformed into a tool for monetary recovery or settlement. By setting aside the Jharkhand High Court’s conditional anticipatory bail orders, the Court reaffirmed that bail must be granted or refused solely on legal merits.

This ruling strengthens the jurisprudence surrounding anticipatory bail, emphasising personal liberty, fairness, and adherence to precedent. As courts across India continue to grapple with complex financial and cheating cases, the judgment provides clear guidance: liberty cannot be made contingent upon the ability to pay.

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