Daijiworld Media Network - New Delhi

New Delhi, Jan 23: The Supreme Court has clarified that courts should not make upfront monetary deposits or undertakings a precondition for granting or considering bail, warning that such practices risk being misused to coerce settlements and undermine the criminal justice system.

A bench of Justices Manoj Misra and Manmohan made the observations while hearing a special leave petition challenging a Delhi High Court order that denied the extension of interim bail to an accused in a case involving alleged diversion of government subsidy funds.

Referring to its recent ruling in Gajanan Dattatray Gore vs. State of Maharashtra, the apex court reiterated that bail relief must not be linked to financial conditions. The bench noted that insisting on deposits or undertakings can be exploited by unscrupulous complainants to force a settlement, depriving the accused of their right to a fair defence.

The case arose from a July 21, 2025 Delhi High Court order that refused to extend interim bail due to the accused’s failure to deposit the remaining allegedly diverted funds. The Supreme Court observed that instead of repeatedly extending interim bail with financial conditions, courts should decide regular bail applications on their merits.

The bench emphasized that inability to comply with an undertaking cannot delay bail consideration. It also clarified that under Section 409 of the IPC, company directors are not presumed culpable; liability must be established during trial.

The Supreme Court disposed of the petition, directing the Delhi High Court to decide the accused’s regular bail application within three weeks while allowing the interim protection granted on July 21, 2025, to continue in the meantime.