Introduction:

In a significant development, the Supreme Court overturned the default bail granted to DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan in connection with an alleged multi-crore loan scam. Justices Bela Trivedi and Ujjal Bhuyan set aside the findings of the High Court and the Trial Court, asserting that the Wadhawan brothers couldn’t claim statutory default bail as the charge-sheet had been filed within the prescribed time. The ruling comes as a response to an appeal by the Central Bureau of Investigation (CBI).

Arguments:

The CBI contended that the trial court had erred in granting default bail, emphasizing that the charge sheet was not incomplete. The defense, represented by Kapil and Dheeraj Wadhawan, had argued that the charge sheet was filed as a tactic to thwart their right to default bail. The Supreme Court considered the previous Ritu Chhabaria judgment but clarified that the investigating officer cannot file an incomplete charge sheet to undermine the right to default bail.

Court’s Judgement:

The bench, while delivering the judgment, unequivocally stated that the Wadhawan brothers were not entitled to statutory default bail. It emphasized that the charge-sheet had been filed within the prescribed time, and cognizance had been taken by the special court. The Court criticized the lower courts for granting default bail to the respondents and sided with the CBI’s appeal.