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Synopsis

The Supreme Court has said deposit of money cannot be imposed as a condition for bail in a cheating case as criminal matter cannot be treated as recovery proceedings.

A bench of Justices Abhay S Oka and Pankaj Mithal allowed an appeal filed by Shane George Dsouza against the High Court's order, declining to interfere with the trial court's direction to deposit Rs 10 lakh and release the money to the complainant.

"This court has repeatedly held that the condition of deposit of such amount cannot be a condition of bail...It is a settled law that criminal proceedings cannot be converted into recovery proceedings," the bench said.

A First Information Report was filed making allegations of commission of offences under Sections 419, 420 and 120B of the Indian Penal Code and Sections 66C and 66D of the Indian Technology Act, 2000.

According to the prosecution, the appellant has cheated the complainant to the sum of Rs 37 lakh. 

The Sessions Court, Patiala House Courts here by the order of January 18, 2023 granted bail to the appellant subject to the condition of deposit of a Demand Draft in the sum of Rs 10 lakh.

The Trial Court also directed for release the said amount to the victim. 

The appellant moved the High Court seeking waiver of the condition of deposit of Rs 10 lakh. The High Court rejected the plea but extended the time to deposit the money.

The top court allowed the appeal against the HC's order.

"Hence, in the facts of the case, there was no justification for imposing the condition of deposit of Rs 10 lakh. Accordingly, the appeal must succeed and we set aside clause (a) of the operative part of the order. The rest of the conditions shall remain as it is," the bench ordered.

Case Title: Shane George D Souza Vs State of NCT Delhi