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Supreme Court of India

UDAY MOHANLAL ACHARYAversusSTATE OF MAHARASIITRA

Citation
2001 INSC 184
Decided
29 March 2001
Disposal
Appeal(s) allowed

Holding

An accused avails the indefeasible right to bail by filing an application and offering to furnish bail, and that right is not extinguished by the subsequent filing of a charge‑sheet.

Summary

The appellant was remanded to judicial custody for offences under the IPC and the Maharashtra Protection of Interest of Depositors Act. After the statutory 60‑day period for filing a charge‑sheet elapsed, he applied for bail, asserting the indefeasible right under the proviso to Section 167(2) of the CrPC. The Special Judge rejected the application, and the High Court later refused bail because a charge‑sheet was filed before it could consider the plea. The Supreme Court held that filing an application and offering to furnish bail constitutes availing of the indefeasible right, even if the order is not yet passed, and that subsequent filing of a charge‑sheet does not extinguish that right. Consequently, the appellant was entitled to be released on bail, and the High Court's order was set aside. The appeal was allowed.

Issues considered

  • The meaning of 'availed of' the indefeasible right to bail under the proviso to Section 167(2) CrPC.
  • Whether the right survives the filing of a charge‑sheet (challan) after the application for bail is made.
  • Applicability of Section 167(2) proviso to offences under the Maharashtra Protection of Interest of Depositors (Financial Establishment) Act, 1999.

Legislation cited

Subjects

bailindefeasible rightSection 167(2) CrPCcharge sheetMPID Actdefault of prosecutionhabeas corpuspersonal libertycriminal procedure

Judgment

                                                                                           )




A                          UDAY MOHANLAL ACHARYA                                                ,...
                                            v.                                         --<
                             STATE OF MAHARASIITRA

                                   MARCH, 29, 2001

B         [G.B. PAITANAIK, U.C. BANERJEE AND B.N. AGRAWAL, JJ.]

           Code of Criminal Procedure, 1973 :                                          ...,..

           Section 167(2), Proviso-Detention of an accused-Maximum period-
    Prescription of-Challan not filed within the stipulated time-Consequence
c   of-Held, an indefeasible right to be released on bail accrues to the accused-
    Such indefeasible right not surviving or remaining enforceable on the challan
    being filed, if already not availed of-Expression 'if already not availed of-
    Meaning of-Held, an accused can be said to have availed of his indefeasible
    right if he is prepared to and furnish the bail, as directed by the Magistrate-
D   Filing of challan aJ this stage will not take away the indefeasible right of the
    accused-However, if the accused is unable to furnish bail, as directed by the
    Magistrale, he cannot be, held to have availed of his indefeasible right-
    During such period if challan is filed, the indefeasible right of the accused
    would stand extinguished-Sections 56, 57, 154, 167, 173, 209(b), 309(2), 436,
    437(5), 439-Constitution of India, 1950-Articles 21, 22(2)-Maharashtra
E                                                                                      ;..
    Protection of Interest of Depositors (Financial Establishment) Act, 1999-
    Sections 3, 13, 14-lndian Penal Code, 1860-Sections 406, 420-Terrorist
    and Disruptive Activities Act-Section 20(4)(b).

           Respondent-State filed a complaint in the Court of Special Judge for
F   prosecution of appellant for the offences under Sections 406 and 420 of the
    Indian Penal Code read with Section 3 of the Maharashtra Protection of
    Interest of Depositors (Financial Establishment) Act, 1999. Appellant sur-         ~

    rendered before the Special Judge and was remanded to judicial custody.
    No challan was filed within the statutory period or sixty days. On the very
    next day or the completion or the period or sixty days, an application for
G   being released on ball was Ried on behalf of the appellant alleging that
    non-ftllng of challan within 60 days entitled him to be released on ball
    under proviso to S~tlon 167(2) of the Code or Criminal Procedure, 1973.
    1'he said application was rejected by the Special Judge on the same day on
    the ground that the provisions of Section 167(2) or the Code of Criminal
                                                                                       ...
H   Procedure bad no application to cases pertaining to the Maharashtra
                                         878
                                    U.M. ACHARYA v. STATE                           879
. '>-     Protection of Interest of Depositors (Financial Establishment) Act. There-
          after, appellant preferred a Criminal Application before the High Court
                                                                                            A

          which was placed for bearing before a Division Bench. The Division Bench
          adjourned the matter for conclusion of the arguments. In the meanwhile,
          cballan was filed before the Special Judge. The Division Bench of the High
          Court held that proviso to Section 167(2) of the Code of Criminal Proce-
                                                                                            B
          dure was applicable even to cases filed for prosecution of an accused for
          offences under the Maharashtra Protection of Interest of Depositors (Fi-
          nancial Establishment) Act. However, as cballan had already been filed,
          the prayer for bail was rejected. Hence the present appeal.

                On behalf of the appellant, it was contended that the legislative           c
          mandate conferring right on the accused to be released on bail on the
          expiry of the period contemplated under Proviso to sub-section (2) of
          Section 167 Cr.P.C. could not be nullified by keeping the matter pending
          for passing of an order, allowing the prosecution to file a charge sheet; that
          the expression 'shall be released on bail' in the said Proviso not only
                                                                                            D
          conferred indefeasible right on the accused but also cast duty on the
          Magistrate since the Magistrate would not be entitled to remand the ac-
          cused any further, that if an accused had not made any application for
          being released on bail, notwithstanding the fact, that charge sheet had not
          been filed within the stipulated period, he would not be entitled to file the
    -\    same after filing of the challan; that if the accused had filed the application   E
          for bail and was prepared to offer and furnish the bail, then subsequent
~
          filing of challan would not take away the accrued right of the accused
          merely because the Magistrate or any other Court bad not passed the
          order, or the accused had not been factually released; and that the passing
          of an order of bail under Proviso to sub·Section (2) of Section 167 was           F
          merely a clerical act of the concerned Magistrate or the Court in imple·
    _).   mentation of the legislative mandate.

                 On behalf of the State, it was contended that the indefeasible right
          accruing to the accused remained enforceable from the time of default till
          the filing of the challan and did not survive or remain enforceable on the G
          challan bclna filed; that once a challan was filed, the provisions o~ S~tlon
          167 would have no application and the custody of the accused thereancr'
          was under the orders of the Magistrate where the case was pcndlngl that ·
          unless the provision of Section 167 was so construed the hard core crlml·
          nals would be allowed to be released on ball even If a challan was filedj~st H
     880                      SUPREME COURT REPORTS                [2001] 2 S.C.R.
A   the next day after the completion of the time provided under the Act, and
    such an interpretation would not sub-serve the interest of the society at
    large.

           Allowing the appeal, the Court

           Held : (Per Pattanaik, J. for himself and Banerjee, J.)
B
           1.1. Under the proviso to sub-Section (2) of Section 167 Cr.P.C., a
    Magistrate before whom an accused is produced may authorise detention
    of the accused otherwise than the custody of police for a total period not
    exceeding 90 days where the investigation relates to offence punishable
c   with death, imprisonment for life or imprisonment for a term or not less
    than 10 years, and 60 days where the investigation relates to any other
    offence. On the expiry of the said period of 90 days or 60 days, as the case
    may be, an indefeasible right accrues in favour of the accused for being
    released on bail on account of default by the Investigating Agency in the
    completion of the investigation within the period prescribed and the ac-
D   cused is entitled to be released on bail, if he is prepared to and furnish the
    bail, as directed by the Magistrate. That indefeasible right does not survive
    or remain enforceable on the challan being filed, if already not availed of.
                                                                        [899-F-G]

E        Hitendra Vishnu Thakur & Ors. v. State of Maharashtra & Ors., [1994]
                                                                                     )-
    4 SCC 602; State through CBI v. Mohd. Ashraft Bhat and Another, [1996] 1
    SCC 432; Dr. Bipin Shanti/al Panchal v. State of Gujarat, [1996] 1SCC718;
    Mohamed Iqbal Madac Sheikh and Others v. State of Maharashtra, [1996] 1
    SCC 722 and Abdul Latif Abdul Wahab Sheikh v. B.K. Jha and Another,

F
    [1987] 2   sec 22, relied on.
           Union of India v. Thamisharasi & Ors., (1995] 4 SCC 190, referred to.

          1.2. On expiry of the period specified in paragraph (a) of proviso to
    sub-Section (2) of Section 167 Cr.P.C. if the accused files an application for
    bail and offers also to furnish the bail, on being directed, then it has to be
G   held that the accused has availed of his indefeasible right even though the
    Court has not considered the said application and has not indicated the
    terms and conditions of hail, and the accused has not furnished the same.
    To interpret the expression 'availed of' to mean actually being released on
    bail after furnishing the necessary bail required would defeat the very
H   purpose of the proviso to Section 167(2) Cr.P.C. and further would make
                          U.M. ACHARYA v. STATE                          881
an illegal custody to be legal, inasmuch as after the expiry of the stipulated    A
period the Magistrate had no Curther jurisdiction to remand and such
custody of the accused is without any valid order of remand. That apart,
when accused files an application for bail indicating his right to be released
as no challan had been filed within the specified period, there is no discre-
tion left in the Magistrate and the only thing he is required to find out is
                                                                                  B
whether the specified period under the statute has elapsed or not, and
whether a challan has been filed or not. [895-G-H]

       Sanjay Dutt v. State through CB.I. Bombay (II), [1994] 5 SCC 410,
clarified.

     State of M.P v. Rustam and Others., [1995] Supp. 3 SCC 221, impliedly
                                                                                  c
overruled.

      Babubhai Parshottamdas Patel v. State of Gujarat, (1982) Crl.LJ. 284,
referred to.
                                                                                  D
      1.3. If the application for consideration of an order of being released
on bail under Section 167(2) of the Code of Criminal Procedure is posted
before the Court after some length of time, or even if the Magistrate
refuses the application erroneously and the accused moves the higher
forum for getting formal order of being released on bail in enforcement of
his indefeasible right, then filing of challan at that stage will not take away   E
the right of the accused. Personal liberty is one of the cherished objects of
the Indian Constitution and deprivation of the same can be only in accord-
ance with law and in conformity with the provisions thereof, as stipulated
under Article 21 of the Constitution. [898-E-F)

       A.K. Gopalan v. The Govt. of India, (1966] 2 SCR 427, approved.
                                                                                  F

       Makhan Singh Tarsikka v. State of Punjab, [1952) SCR 368 and Ram
 Narayan Singh v. The State of Delhi and Ors., [1953) SCR 652, held
 inapplicable.
                                                                                  G
       1.4. There is no provision in the Criminal Procedure Code authoris-
 ing detention of an accused in custody after the expiry of the period
 indicated in the proviso to sub-section (2) of Section 167 excepting the
 contingency indicated in Explanation I, namely, if the accused does not
 furnish the bail. In such a case, where the accused is unable to furnish bail,
 as directed by the Magistrate, the continued custody of the accused will not     H
     882                      SUPREME COURT REPORTS                   (2001] 2 S.C.R.
A    be unauthorised. Therefore, if during that period the investigation is com-
     plete and charge sheet is filed then the so called indefeasible right of the
     accused would stand extinguished. (900-C]

           Per Agrawal, J. (Partly dissenting)

B          1.1. The present case, where the prosecution was for an offence
    under the Maharashtra Protection or Interest or Depositors (Financial
    Establishment) Act, 1999 being a case of first impression, the Court con-           '!'..
    cerned was of bona fide opinion that the provisions of Section 167(2)
    Cr.P.C. were not applicable. That view of the Special Judge was reversed
C   by the High Court, but before it could fully apply its mind, the challan was
    filed. In this background, the right of the accused to be enlarged on bail
    under proviso to Section 167(2) of the Code cannot be said to have been
    'availed of' in the present case. (910-H]

           1.2. Framers of the Code conceived and desired that after expiry of
D   the period prescribed in proviso to Section 167(2) Cr.P.C., an accused has to
    be released on bail if no challan is filed because after the expiry of the
    statutory period prescribed therein, there is no power in Magistrate to
    remand for further custody. However, by the time the court is considering
    the exercise of the said rightif a challan is filed then the question of grant of
E   bail has to be considered only with reference to merits of the case under the
    provisions of the Code relating to grant of bail after filing of the cballan.       f
    The expression 'availed of' does not mean mere filing of the application for
    bail expressing thereunder willingness to furnish bail bond, but the stage
    for actual furnishing of bail bond must reach. If challan is filed before that,
    then there is no question of enforcing the right, howsoever valuable or
F   indefeasible it may be, after filing of the challan because thereafter the right
    under default clause cannot be exercised. (905-C; 910-C]

           Sanjay Dutt v. Stat• through CBI Bombay (JI), [1994) 5 SCC 410, relied
    on.
G
           Hittndra Vishnu Thakur & Ors. v. Stat• of Maharashtra & Ors., [1994]
    4 sec 602, referred to.

         1.3. If the writ petition ftled either under Article 32 or Article 226 of
    the Constitution, as the case may be, for Issuance of a writ of habeas
H   corpus on the ground that accused was under custody without a valid
                 U.M. ACHARYA v. STATE [PATTANAIK, J.]                   883
order of remand has to be dismissed if during the pendency of such               A
petition a valid order of remand has been passed by the court concerned
then the right of an accused claiming relief on the ground that he has a
statutory right under proviso to Section 167(2) Cr.P.C. cannot be put on a
higher footing than the constitutional right. [907-G-H]

      Naranjan SingMVathawan & Ors. v. Stale of Punjab, Am (1952) SC             B
106; Ram Narayan Singh v. The State of Delhi & Ors., Am (1953) SC 277
and A.K. Gopalan v. Government of India, Am (1966) SC 816, relied on.

      1.4. In case the court concerned has adopted any dilatory tactics or
an attitude to defeat the right of the accused to be released on bail on the
ground of default, the accused should immediately move the superior
                                                                                 c
court for appropriate direction. But if the delay is bona fide and uninten·
tional and iu the meantime challan is filed then such a petition has to be
dismissed and it cannot be said that the accused has already availed of the
right accruing under proviso to Section 167 of the Code. [910-D·El
                                                                                 D
      CRIMINAL APPELLATE JURISDICTION : Criminal Appeal No. 394
of 2001.

     From the Judgment and Order dated 4.9.2000 of the Bombay High
Court in Crl.A. No. 2701 of 2000.
                                                                                 E
     K.T.S. Tulsi, Ashok M. Saroagi, Subhash Jha, Vijay Kumar, Ms.
Sangeeta Kumar, Sanjay Maan and Ms. Karnlesh Jain for the Appellant.

      P. Janardhan, Addi. General and S. V. Deshpande for the Respondent.

      The Judgments of the Court were delivered by
                                                                                 F
      PATTANAIK, J. Leave granted.

      In this Appeal by grant of Special Leave the question that arises for
consideration is when can an accused be said to have availed of his
indefeasible right for being released on bail under the Proviso to Section
                                                                                 G
167(2) of the Code of Criminal Procedure, if a challan is not filed within the
period stipulated thereunder. In the case in hand, the accused after surren·
dering himself in the Court was remanded to judicial custody by order of the
Magistrate on 17 .6.2000. A case has been instituted against him under
Sections 406 and 420 of the Indian Penal Code read with Maharashtra
Protection of Interest of Depositors (Financial Establishment) Act, 1999 (for    H
    884                      SUPREME COURT REPORTS                 [2001] 2 S.C.R.
A   short "MPID Act"). The period of 60 days for filing of charge sheet was
    completed on 16.8.2000. On the next day i.e. 17.8.2000, an application for
    being released on bail was filed before the Magistrate alleging that non-filing
    of challan within 60 days entitles the accused to be released on bail under
    proviso to Section 167(2) of the Code of Criminal Procedure. The Magistrate
    rejected the prayer on the same day on a conclusion that the provisions of
B
    Section 167 (2) Cr.P.C. has no application to cases pertaining to MPID Act.
    The accused, therefore, preferred a Criminal Application before the Bombay
    High Court. A learned Single Judge after hearing the contentions raised by
    the accused and by the State referred the matter to the Division Bench on
    23rd August, 2000 and the matter was listed before a Division Bench on 29th
c   August, 2000. On that date the Division Bench adjourned the matter for
    argument to 31st August, 2000 and in the meanwhile a charge sheet was filed
    before the Trial Judge on 30th August, 2000. The Division Bench of Bombay
    High Court, on examination of the relevant provisions of the MPID Act, more
    particularly, Sections 13 and 14 thereof, and relying upon the judgment of
    this Court in Union of India v. Thamisharasi & Ors., [1995] 4 Supreme Court
D
    Cases 190, Hitendra Thakur & Ors. v. The State of Maharashtra, [1994] 4
    Supreme Court Cases, 602 as well as the Constitution Bench decision in
    Sanjay Dutt v. State through C.B.l. Bombay (II), [1994] 5 Supreme Court
    Cases 410, came to hold that there is no interdiction in the Mal1arashtra Act
    of 1999 against the applicability of section 167(2) proviso of the Criminal
E   Procedure Code and, therefore, an accused arrested for commission of an
    offence under Section 3 of the MPID Act is entitled lo claim release on bail
    on expiry of total period specified in Section 167 if the challan is not filed
    within that period. Having held so, on the entertainability of the claim of the
    accused invoking provisions of Section 167 of Criminal Procedure Code the
F   High Court ultimately refused to grant relief on the ground that by the time
    the application for bail before the Division Bench came to be considered on
    31st August, 2000, a charge sheet had been filed before the Magistrate on
    30th August, 2000 and, therefore, the so called enforceable right did not
    survive or remain enforceable. In coming to the aforesaid conclusion, the
    High Court relied upon the Constitution Bench decision of this Court in
G   Sanjay Dutt's case (supra) as well as the case of State of M.P. v. Rustom &
    Ors., [1995] Supp. 3 Supreme Court Cases, 221, and further held that the full
    Bench decision of Gujarat High Court in Babubhai Patel's case (1982) Crl.
    L.J. 284, is contrary to the decision of the Supreme Court in Ruslom's case
    (supra). On dismissal of an application filed by the accused the present appeal
H   has been preferred to this Court.
                      U.M. ACHARYA v. STATE [PATTANAIK, J.]                     885
           Mr. K.T.S. Tulsi, learned senior counsel appearing for the accused/          A
    appellant contended that the legislative mandate conferring right on the
    accused to be released on bail on the expiry of the period contemplated under
    the Proviso to sub-section (2) of Section 167, if the accused is prepared to
    furnish bail, cannot be nullified by taking recourse to subterfuge and keeping
    the matter pending for passing of an order, allowing the prosecution to file
                                                                                        B
    a charge sheet. According to Mr. Tulsi, the expression "shall be released on
    bail" in the Proviso to sub-section (2) of Section 167 not only confers
    indefeasible right on the accused but also casts duty/obligation on the
    Magistrate, since the Magistrate will not be entitled to remand the accused
    any further. In this view of the matter, if an accused files an application on
    the expiry of the period contemplated under the Proviso to sub-section (2)          c
    of Section 167 and offers to furnish the bail on being ordered and by the date


,   of filing of the application no charge sheet had been filed by the prosecution
    then the accused has to be released on bail and the right conferred upon him
    under the aforesaid provision of the Code must be enforced and subsequent
    filing of charge sheet will not alter the position. Mr. Tulsi further contended
                                                                                        D
    that in paragraph 48 of the judgment in Sanjay Dutt's case (supra), when it
    has been indicated "The indefeasible right accruing to the accused in such
     a situation is enforceable only prior to the filing of the challan and it does
     not survive or remain enforceable on the cballan being filed, if already not
     availed of'. would obviously mean, if application for being released on bail
     had not been made before the filing of challan. In other words, according to       E
     Mr. Tutsi if an accused had not made any application for being released O'l
     bail, notwithstanding the fact, that charge sheet had not been filed within the
     stipulated period he will not be entitled to file the same after filing of the
     challan, but if the accus.ed has filed the application for bail and was prepared
     to offer and furnish the bail, as required by the Court, then subsequent filing    F
     of challan will not take away the accrued right of the accused merely because
     the Magistrate or any other Court had not passed the order, or the accused
     had not been factually released. According to Mr. Tutsi if the observations
     of this Court in Sanjay Dutt's case (supra) is interpreted in the manner, as
     it has been interpreted by the High Court in the impugned judgment then the
     prosecution can always frustrate the right of the accused accrued in his favour    G
     under the Mandates of the Statute by several dialectic tactics or even in
     contingency, like, absence of the Presiding Officer of the Court or non-
     availability of the Court to take up application of bail and passing orders
     thereon. Mr. Tulsi contends that the passing of an order of bail under Proviso
     to sub-section (2) of Section 167 is merely a clerical act of the concerned        H
    886                       SUPREME COURT REPORTS                  (2001] 2 S.C.R.
A   Magistrate or the Court in implementation of the Legislative Mandate,
    and at that stage, no adjudication is required to be made and in this view of
    the Matter the provisions of the Code should be so construed so as not to
    frustrate the Legislative Mandate but it must be so construed which should
    be in aid of fulfilling the intention of the legislature. This being the position,
    Mr. Tulsi contends that the impugned order is wholly erroneous and should
B
    be set aside.

           Mr. Janardhan, learned Additional Advocate General, appearing for the
    State of Maharashtra, on the other hand contended, that in several decisions
    of this Court including the Constitution Bench decision in Sanjay Dutt's case
c   (supra) it has been unequivocally held that so called indefeasible right
    accruing to the accused remains enforceable from the time of default till the
    filing of the challan and does not survive or remain enforceable on the challan
    being filed. According to Mr. Janardhan, if an accused has not been released


D
    on bail and by the time the Court finally considers the application and passes
    an order and accused furnishes the bail, challan is filed then the right of being
    released stands extinguished since once a challan is filed the provisions of
                                                                                         '
    Section 167 will have no application and the custody of the accused thereafter
    is under the orders of the Magistrate where the case is pending. According
    to the learned counsel for the State, unless the provisions of Section 167 is
    so construed then hardcore criminals will be allowed to be released on bail
E   even if a challan is filed just the next day after the completion of the time
    provided under the Act, and such an interpretation would not subservc the
    interest of the society at large. Mr. Janardhan further contended, that the
    dictum of the Constitution Bench in Sanjay Dutt's case (supra) has been re-
    affirmed by a subsequent judgment of the Court in Rustom's case (supra) as
F   well as by a three judge Bench judgment in Mohammed Iqbal Madar Sheikh
    & Ors. v. State of Maharashtra, [1996] I Supreme Court Cases 722, and
    therefore the question no longer remains res integra and the High Court was
    fully justified in rejecting the application of the accused.

           Before examining the correctness of the rival submissions and find out
G   as to when the right accrues to the accused for being released on bail under
    the Proviso to sub-section (2) of Section 167 and when that right gets
    extinguished, it will be appropriate to notice the very scheme of the Code.
    Under Section 56 of the Code of Criminal Procedure it is the bounden duty
    of the police officer arresting a person to produce before a Magistrate having
H   jurisdiction without unnecessary delay. Under Section 57 of the Code there
                             U.M. ACHARYA v. STATE [PATTANAIK, J.]                  887
             is an embargo on the police officer to detain in custody a person arrested A
,     ').    beyond 24 hours excluding the time necessary for the journey from the place
             of arrest to the Court of the Magistrate. The object behind the aforesaid two
             provisions which are required to be read together is that the accused should
             be brought before a Magistrate without much delay and that the Magistrate
             will have succinct of the matter within 24 hours. The aforesaid provision in
                                                                                              B
             fact is in consonance with the constitutional mandate engrafted under Article
             22(2). The continuance of detention for the purpose of investigation beyond
      '°I   ·24 hours has to be authorised by the Magistrate from time to time and without
              such special order from the Magistrate the detention may be illegal. Under
              Criminal Procedure Code of 1878 a Magistrate was not entitled to allow
              detention of an accused in custody for a term exceeding 15 days on the whole. c
              It was also found that the investigation could not ordinarily be completed
              within 15 days. The Law Commission, therefore, suggested that an accused
              could be denied to remain in custody for more than 60 days which got
              engrafted in Section 167 of the present Code (Criminal Procedure Code
              1973). The Legislature, however, felt that a drastic change was called for to
                                                                                              D
              alter the tardy pace of investigation and, therefore, by Criminal Procedure
              Code (Amendment) Act, 1978, (Act 45 of 1978) Proviso (a) to sub-section
              2 of Section 167 has been added. Under the amended provision, therefore a
              Magistrate is empowered to authorise detention of the accused in custody,
              pending investigation for an aggregate period of 90 days in cases where the
              investigation relate to offence punishable with death, imprisonment for life    E
              or imprisonment for not less than 10 years or more and in other cases the
               period of 60 days has been kept. The extended period of 90 days was brought
               into Criminal Procedure Code by amendment as it was found that in several
              cases of serious nature it was not possible to conclude the investigation. This
              provision of Section 167 is in fact supplementary to Section 57, in conso-      F
              nance with the principle that the accused is c.1titled to demand that justice
       ~       is not delayed. The object of requiring the accused to be produced before a
               Magistrate is to enable tl1e Magistrate to       that remand is necessary and
               also to enable the accused to n1ake a representation which he may wish to
               make. The power under Section 167 is given to detain a person in custody
               while the police goes on with the investigation and before the Magistrate G
               starts the enquiry. Section 167, therefore, is the provision which authorises
               the Magistrate permitting detention of an accused in custody and prescribing
    ___,.      the maximum period for which such detention could be ordered. Having
               prescribed the maximum period, as stated above, what would be the conse-
               quences thereafter has been indicated in the Proviso to sub-section 2 of H
     888                      SUPREME COURT REPORTS                 (2001] 2 S.C.R.
A     Section 167. The Proviso is unambiguous and clear and stipulates that the
      accused shall be released on bail if he is prepared to and does furnish the
     bail which has been termed by judicial pronouncement to be 'compulsive
     bail' and such bail would be deemed to be a bail under Chapter XXXIII. The
     right of an accused to be released on bail after expiry of the maximum period
     of detention provided under Section 167 can be denied only when an accused
B
     does not furnish bail, as is apparent from Explanation I to the said Section.
     Proviso to sub-section 2 of Section 167 is a beneficial provision for curing
     the mischief of indefinitely prolonging the investigation and thereby affecting   -..        •
     the liberty of a citizen Section 167 occurs in Chapter XII dealing with the
     powers of the police to investigate in criminal offence which starts with
c    lodging of information in cognizable cases under Section 154, and ultimately
    culminating in submission of report on completion of investigation under
     Section I 73. Soon after completion of investigation the officer in charge of
    Police Station has to forward to the Magistrate, empowered to take cogni-
    zance of the offence, a report in the prescribed form and once such report
    is filed before the Magistrate which is commonly termed as "challan" then
D
    the custody of the accused is no longer required to be dealt with under Section
     167 of the Code, but under Section 209. On submission of Challan under
    Section 173 in a case instituted on a police report or otherwise, when it
    appears to the Magistrate that offence is exclusively triable by the Court of
    Session, the moment the accused is brought before the Magistrate or he
E   himself appears then the Magistrate commits the case to the Court of Session       .,
    and subject to the provisions of the Code relating to bail, remand the accused
    to custody until such commitment has been made. The procedure for com-
    mitrnent to the Court of Sessions, as provided in Section 209 of the present
    Code is radically different from the commitment proceedings under the 1898
F   Code. No enquiry is contemplated by the Magistrate under the present
    Scheme. All that the Magistrate is required to do is, to grant copies, preparing
    the records, notify the public prosecutor and formally commit the case to the      ...
    Court of Sessions. Section 209(b) provides that the Magistrate shall remand
    the accused to custody subject to the provisions of the Code relating to bail,
    necessarily, therefore, subject to the provisions in Sections 436, 437 and 439.
G   Thus, under clause (b) of Section 209 the committing Magistrate has the
    power to remand the accused to custody during and until the conclusion of
    the trial, subject to the provisions relating to bail. When the committing
    Magistrate passes an order of commitment and the accused, at that stage is
                                                                                        .....__
    found to be on bail, the committing Magistrate has the power to cancel the
H   bail and commit him to custody, if he consider it necessary to do so. But such
).,



                        U.M. ACHARYA v. STATE [PATTANAIK, J.]                    889
      a cancellation would be in accordance with sub-section (5) Section 437 of         A
      the Code and there must be proper grounds for cancellation and not that the
      Magistrate would cancel the bail ipso facto on challan being filed and accused
      being produced for the purpose of passing an order of committal. Any order
      a Magistrate passes under Section 209(b) to remand an accused io custody
      would also obviously be subject to the provisions of the Code relating to bail.
                                                                                        B
      In a case where the committing Magistrate while passing an order of
      committal remands the accuse.d to custody in exercise of power under Section
      209(b), the power of the learned Sessions Judge under sub-section (2) of
      Section 309 is not whittled down in any manner at any time after commence-
      ment of trial, but ordinarily if the committing Magistrate has already passed
      an order remanding the accused to custody while passing an order of               C
      commitment no further order is required to be passed by the Sessions Judge
      in exercise of power under sub-section (2) of Section 309. Bearing in mind
      the aforesaid scheme in the Code of Criminal Procedure we would now
      examine the point in issue.

             There cannot be any dispute that on expiry of the period indicated in
                                                                                        D
      the proviso to sub-section (2) of Section 167 of the Code of criminal
      Procedure the accused has to be released on bail, if he is prepared to and
      does furnish the bail. Even though a Magistrate does not possess any
      jurisdiction to refuse bail when no charge sheet is filed after expiry of the
      period stipulated under the proviso to sub-section (2) of Section 167 and even    E
      though the accused may be prepared to furnish the bail required, but such
      furnishing of bail has to be in accordance with the order passed by the
      Magistrate. In other words, without an order of the Magistrate the legislative
      mandate engrafted in the proviso to sub-section (2) of Section 167 cannot be
      given effect to and there lies the rub. The grievance of the accused is that
                                                                                        F
      for a variety of reasons the Magistrate or even the superior Court would
      refuse to pass au order releasing the accused on bail, notwithstanding the pre-
      conditions required under the proviso are satisfied and then when the accused
      moves the High Court or the Supreme Court during the interregnum the police
      files a challan. It was also contended by Mr. Tulsi that a Public Prosecutor
      may take adjournment from the Court when the bail application was being           G
      moved and then would persuade the investigating agency to file a challan and
      then contend that the Court would not be entitled to release the accused on
      bail under the proviso to sub-section (2) of Section 167, and in that situation
      not only the positive command of the legislature is flouted but also an
      unauthorised period of custody is being legalised and thi.s would be an           H
      890                     SUPREME COURT REPORTS                 [2001] 2 S.C.R.
A    infraction of the constitutional provision within the meaning of Article 22.
     In Hitendra Vishnu Thakur. v. State of Maharashtra, [1994] 4 Supreme Court       ~     --
     Cases 602, two learned Judge of this Court construed the provisions of
     Section 167 of the Code of Criminal Procedure Code read with sub-section
     4 of Section 20 of TADA. After examining in detail the object behind the
     enactment of Section 167 of the Code of Criminal Procedure and the object
B
     of the Parliament introducing the proviso to sub-section (2) of Section 167
     prescribing the outer limit within which the investigation must be completed
     the Court expressed that the proviso to sub-section (2) of Section 167 read      ,._
     with Section 20(4)(h) of TADA creates an indefeasible right in an accused
     person on account of the default by the Investigating Agency in the
c    completion of the investigation within the maximum period prescribed or
     extended, as the case may be, to seek an order for his release on bail
     and such order is· generally termed as an "order on default". The Court
     also held that an obligation is cast upon the Court to inform the accused
     of his right of being released on bail and enable him to make an application
D    in that behalf. It was also further held that the accused would be entitled
     to move an application for being admitted on bail and the Designated
     Court shall release him on bail if the accused seeks to be so released
     and furnishes the requisite bail. The Court declined to agree with the
     contention of the accused that the Magistrate must release the accused on bail
     on its own motion even without any application from an accused person on
E    his offering to furnish bail.

           In Sanjay Dutt's case (supra) the Constitution Bench examined this
   question also alongwith some other questions and the Constitution Bench
  -explained the meaning of the expression "indefeasible right" of the accused
F made in Hitendra Vishnu Thakur (supra). It appears that the counsel for the
   accused in Sanjay Dutt's case conceded before the Court that indefeasible
   right for grant of bail on expiry of the initial period of 180 days for
   completing the investigation or the extended period prescribed by Section 20
   (4)(bb), as held in Hitendra Vishnu Thakur, (supra) is a right of the accused
    which is enforceable only upto the filing of the challan and does not survive
G for enforcement on the challan being filed in the Court against him. In fact
   Mr. Sibbal, learned senior counsel appearing for the accused had submitted,
    that the decision of the Division Bench in Hitendra Vishnu Thakur cannot
   be read to confer on tl1e accused an indefeasible rigllt to be relcasl:d on bail
   under this provision once the challan has been filed if the accused continues
H in custody. The Constitution Bench in paragraph 48 stated thus :
           U.M. ACHARYA v. STATE[PATTANAIK, J.]                        891
 "'i'he indefeasible right accruing to the accused in such a situation is      A
 enforceable only prior to the filing of the challan and docs not survive
 orrelnain enforceable on the challan being filed, if already not availed
 of; Once the challan has been filed, the question of grant of bail has
 to be considered and decided only with reference to the merits of the
 case under the provisions relating to grant of bail to an accused after
                                                                               B
 the filing of the challan. The custody of the accused after the challan
 has be.en filed is not governed by Section 167 but different provisions
 of t1Jei Code of Criminal Procedure. If that right had accrued to the
 accus~d but il remained unenforced till the filing of the challan, then
 theie is no question of its enforcement thereafter since it is extin-
 guisttcd the moment challan is filed because Section 167 Cr.PC.               c
 ceases lo apply. The Division Bench also indicated that if there be
 such an application of the accused for release on bail and also a prayer
 for extension of time to complete the investigation according to the
 pro~iso in Section 20(4)(bb), both of them should be considered
  together. It is obvious that no bail can be given even in such a case
                                                                               D
 unless the prayer for extension of the period is rejected. In short, the
  grant of bail in such a situation is also subject to refusal of the prayer
  for extension of time, if such a prayer is made_ If the accused applies
  for bail under this provision on expiry of the period of 180 days or
  the extended period, as the case may be, . then he has to be released
  on bail forthwith. The accused, so released on bail may be arrested          E
  and committed to custody according to the provisions of the Code of
  Criminal Proc"dure. It is settled by Constitution Bench decisions that
  a petition seeking the writ of habeas corpus on the ground of absence
  of a valid order of remand or detention of the accused, has to be
  dismissed, if on the date of retum of the rule, the custody or detention     F
  is on the basis of a valid order. (See Naranjan Singh Nathawan v.
  State of Punjab, [1952] SCR 395, Ram Narayan Singh v. State of
  Delhi, [1953] SCR 652 and A.K Copa/on v. Government of India,
  [1966] 2 SCR 427."

The Court then answered in paragraph 53 as under :
                                                                               G

  "(2)(a)- Section 20(4)(bb) of the TADA Act only requires production
  of the accused before the court in accordance with Section 167(1) of
  the Code of Criminal Procedure and this is how the requirement of
  notice to the accused before granting extension beyond the prescribed        H
     892                       SUPREME COURT REPORTS                 [2001) 2 S.C.R.
A            period of 180 days in accordance with die further proviso to clause
             (bb) of sub-section (4) of Section 20 of the TADA Act has to be
             understood in the judgment of die Division Bench of this Court in
             Hitendra Vishnu 11iakur. The requirement of such notice to the
             accused before granting the extension for completing the investiga-
             tion is not a written notice to the accused giving reasons therein.
B
             Production of the accused at that time in the court informing him that
             the question of extension of the period for completing the investiga-
             tion is being considered, is alone sufficient for the purpose.

             (2)(b) - The "indefeasible right" of the accused to be released on bail
c            in accordance with Section 20(4)(bb) of the TADA Act read with
             Section 167(2) of the Code of Criminal Procedure in default of
             completion of the investigation and filing of the challan within the
             time allowed, as held in Hitendra Vishnu Thakur is a right which
             ensures to, and is enforceable by the accused only from the time of
             default till the filing of the challan and it does not survive or remain
D
             enforceable on the. challan being filed. If the accused applies for bail
             under this provision on expiry of the period of 180 days or the
             extended period, as the case may be, then he has to be released on
             bail forthwith. The accused, so released on bail may be arrested and
             committed to custody according to the provisions of the Code of
E            Criminal Procedure. The right of the accused to be released on bail
             after filing of die challan, notwithstanding the default in filing it
             within the time allowed, is governed from the time of filing of the
             challan only by the provisions relating to the grant of bail applicable
             at that stage."
F
          In State through CBI v. Mohd. Ashraft Bhat and Another, [1996)
    Supreme Court Cases 432, The Presiding Officer of the Designated Court
    granted bail to the accused on a finding that the prosecution had failed to
    submit the police report within the period prescribed. This Court set aside the
    order on a conclusion that on the date the Designated Court granted bail to
G   the respondent/accused, the prosecution had already submitted the Police
    Report and, therefore, as held by the Constitution Bench in Sanjay Dutt
    (supra) the right of the accused stood extinguished.

          Jn Dr. Bipin Shanti/al Panchal v. State of Gujarat, [ 1996) 1 Supreme
    Court Cases 718, a three Judge Bench decision, this Court referred to the
H
                     U.M. ACHARYA v. STATE [PATTANAIK, J.]                      893
    proviso to sub-section (2) of Section 167 of the Code of Criminal Procedure          A
    and held that though the aforesaid provisions would apply to an accu•ed
    under NDPS Act, but since charge sheet had already been filed and the
    accused is in custody on the basis of orders of remand passed under other
    provisions of the Code the so called indefeasible right of the accused must
    be held to have been extinguished, as was held by the Constitution Bench
                                                                                         B
    in Sanjay Dutt (supra). The Court observed thus :

            "Therefore, if an accused person fails to exercise his right to be
            released on bail for the failure of the prosecution to file the charge-
            sheet within the maximum time allowed by law, he caunot contend
            that he had an indefeasible right to exercise it at any time notwith-        c
            standing the fact that in the meantime the charge-sheet is filed. But
            on the other hand if he exercises the right within the time allowed by
            law and is released on bail under such circumstances, be caunot be
            rearrested on the mere filing of the charge-sheet, as pointed out in
            Aslam Baba/al Desai v. State of Maharashtra."
                                                                                         D
           In this case, the accused had not made application for enforcement of
    bis right accruing under proviso to Section 167(2) of the Code. But raised
    the contention only in the Supreme Court. This Court, therefore, formulated
    the question thus - Whether the accused who was entitled to be released on
    bail under proviso to sub-s.ection (2) of Section 167 of the Code, not having
                                                                                         E
    made an application when such right had accrued, can exercise that right at
    a later stage of the proceeding, and answered in the negative.

             In yet anotl1er case Mohamed Iqbal MadarSheikh and Others v. State
             of Maharashtra, [1996] 1 Supreme Court Cases 722, three Judge
             Bench considered again proviso (a) to sub-section (2) of Section 167        F
             of the Code and it was held :

             "It need not be pointed out or impressed that in view of a series of
             judgments of this Court, this right caunot be defeated by any court,

-
'
             if the accused concerned is prepared and does furnish bail bonds to
             the satisfaction of the court concerned. Any accused released on bail
             under proviso (a) to Section 167(2) of the Code read with Section
                                                                                         G

             20(4)(b) or Section 20(4)(bb), because of the default on the part of
             the investigating agency to conclude the investigation, within the.
             period prescribed, in view of proviso (a) to Section 167(2) itself, shall
              be deemed to have been so released under the provisions of Chapter         H
    894                       SUPREME COURT REPORTS                   [2001] 2 S.C.R.

A             XXXIII of the Code. It cannol be held that an accused charged of any
              offence, including offences under TADA, if released on bail because
              of the default in complelion of 01e investigation, then no sooner the
                                                                                         -{   -
              charge-sheet is filed, the order granting bail to such accused is to be
            . cancelled. The bail of such accused who has been released, because
              of the default on the part of the investigating officer to complete the
B
              investigation, can be cancelled, but not only on the ground that after
              the release, charge-sheet has been submitted against sue)) accused for
              an offence under TADA. For cancelling the bail, the well-settled
              principles in respect of cancellation of bail have to be made out. In
              this connection, reference may be made to the case of Aslam Baba/al
c             Desai v. State of Maharashtra. The majority judgment has held that
              in view of deeming provision under proviso (a) to Section 167(2),
              the order granting bail shall be deemed to be one under Section 437(1)
              or sub-section (2) or Section 439(1) and that order can be cancelled,
              when a case for cancellation is made out under Sections 437(5) and
             439(2) of the Code. But for that, the sole ground should not be that
D
              after the release of such accused the charge-sheet has been submitted.
             The same view was expressed by this Court in the case of Raghubir
             Singh v. State of Bihar."

    In that particular case even though charge-sheet had not been submitted
E   within the prescribed period and was submitted later and the Court observed
    that the accused had become entitled to be released on bail under the proviso
    (a) to sub-section (2) of Section 167 of the Code, but since no application
    for bail on the said gmund had been made by the accused and the charge-
    sheet in the meantime, having been filed and cognisance having been taken,
    the said right cannot be exerr:ised. In paragraph 12 of the said judgment,
F   however, an observation has been made by this Court to the effect

             "If an accused charged with any kind of offence becomes entitled lo
             be released on bail under proviso (a) to Section 167 (2), tliat statutory


G
             right should not be defeated by keeping the applications pending till
             the charge-sheets are submitted so that the right which had accrued
             is extinguished and defeated."
                                                                                               -  ,

          The Court further came to the conclusion thal the accused/appellants
    have forfeited their right to be released on bail under proviso (a) to Section        ~-
    167(2) as they are in custody on the basis of orders for remand passed under
H   other provisions of the Code.
                      U.M. ACHARYA v. STATE [PATTANAIK, J.]                   895
            In State of M.P v. Rustam and Others, [1995] Supp. 3 Supreme Court A
    Cases 221, this Court set aside the order of the High Court where the High
    Court has released the accused on bail,charge-sheet not having been filed
    within the period stipulated in Section 167(2) of the Code of Criminal
    Procedure, as by the time the High Court entertained the bail application
    challan had already been filed, this Court had observed that the Court is
                                                                                       B
    required to examine the availability of the right to compulsive bail on the date
    it is considering the question of bail and not barely on the date of presentation
    of the petition for bail. This Court came to the conclusion "on the date when
    the High Court entertained the petition for bail and granted it to the accused/
    respondent, undeniably the challan stood filed in Court and then the right as
    such was not available. A conspectus of the aforesaid decisions of this Court      C
    unequivocally indicates that an indefeasible right accrues to the accused on
    the failure of the prosecution to file the challan within the period specified
    under sub-section (2) of Section 167 and that right can be availed of by the
    accused if he is prepared to offer the bail and abide by the lerms and
     conditions of the bail, necessarily, therefore, an order of the Court has to be D
     passed. It is also further clear that that indefeasible right does not survive or
     remain enforceable on the challan being filed, if already not availed of, as
     has been held by the Constitution Bench in Sanjay Dutt'scase (supra). The
     crucial question that arises for consideration, therefore, is what is a true
     meaning of the expression 'if already not availed of ? Does it mean that an
     accused files an application for bail and offers his willingness for being        E
     released on bail or does it mean that a bail order must be passed, the accused
     must furnish the bail and get him released on bail? In our considered opinion       j
     it would be more in consonance with the legislative mandate to hold that an
     accused must be held to have availed of his indefeasible right, the moment
     he files an application for being released on bail and offers to abide by the      F
     terms and conditions of bail. To interpret the expression 'availed of to mean
     actually being released on bail after furnishing the necessary bail required
      would cause great injustice to the accused and would defeat the very purpose
,    of the proviso to Section 167(2) of the Criminal Procedure Code and further
      would make an illegal custody to be legal, inasmuch as after the expiry of
      the stipulated period the Magistrate had no further jurisdiction to remand and
                                                                                       G
      such custody of the accused is without any valid order of remand. That apart,
      when accused files an application for bail indicating his right to be released
      as no challan had been filed within the specified period, there is no discretion
      left in the Magistrate and the only thing he is required to find out is whether
       the specified period under the statute has elapsed or not, and whether a H
     896                       SUPREME COURT REPORTS                  [2001] 2 S.C.R.
A    challan has been filed or not. U the expression 'availed of is interpreted to
    mean that the accused must factually be released on bail, then in a given case
                                                                                        -~       ...
     where the Magistrate illegally refuses to pass an order notwithstanding the
    maximum period stipulated in Section 167 had expired, and yet no challan
    had been filed then the accused could only move to the higher forum and
    while the matter remains pending in the higher forum for consideration, if
B
    the prosecution files a charge-sheet then also the so called right accruing to
    the accused because of inaction on the part of the investigating agency would        :>'..
    get frustrated. Since the legislature have given its mandate it would be the
    bounden duty of the Court to enforce the same and it would not be in the
    interest of justice to negate the same by interpreting the expression 'if not
c   availeJ of in a manner which is capable of.!>cing abused by the prosecution.
    Two Judge Bench decision of this Court in-::itate of M.P v. Rustam & Ors.
    (supra) setting aside the order of grant of bail by the High Court on a
    conclusion that on the date of the order the prosecution had already submitted       ~
    a police report and, therefore, the right stood extinguished, in our considered
    opinion, does not express the correct position in law of the expression 'if
D
    already not availed of, used by the Constitution Bench in Sanjay Dull
    (supra). We would be failing in our duty, if we do not notice the decisions
    mentioned by the Constitution Bench in Sanjay Du/l's case, which decisions
    according to the learned counsel, appearing for the State, clinches the issue.
    In Makhan Singh Tarsikka v. State of Punjab, [1952] S.C.R. 368, an order
E   of detention had been assailed in a petition filed under Article 32, on the         I
    ground that the period of detention could not be indicated in the initial order
    itself, as under the provisions of Preventive Detention Act, 1950, it is only
    when the Advisory Board reports that there is sufficient cause for detention,
    the appropriate Goverruuent may confirm the detention order and continue
F   the detention of the detenu for such period, as it thinks fit. On a construction
    of the relevant provisions of the Preventive Detention Act, as it stocd then,       ,._
    this Court accepted the contention and came to hold that the fixing of the
    period of detention in the initial order was contrary to the scheme of the Act
    and cannot be sustained. We fail to understand as to how this decision is of
    any assistance for arriving at a just conclusion on the issue, which we are                  '
G   faced in the present case. The next decision is the case of Ram Narayan Singh
    v. 11ze State of Delhi and Ors., [1953] S.C.R 652. In this case on a habeas
    corpus petition being filed under Article 32, the Court was examining the
    legality of the detention on the date, the Court was considering the matter.
    From the facts of the case, it transpires that there was no material to establish
H   that there was a valid order of remand of the accused. The Court, therefore,
                      U.M. ACHARYA v. STATE [PATTANAIK, J.]                     897
    held that even if the earlier order of remand may be held to be a valid one,         A
    but the same having expired and no longer being in force and there being
    no valid order of remand, the detention was invalid. It is in this context,
    observation has been made that in a question of habeas corpus, lawfulness
    or otherwise, custody of the person concerned will have to be examined with
    reference to the date of the return and not with reference to the institution
                                                                                         B
    of the proceedings. There cannot be any dispute with the aforesaid propo-
    sition, but in the case in hand, the consequences of default on the part of the
    investigating officer in not filing the charge-sheet within the prescribed period
    have been indicated in the provisions of the statute itself and the language
    is of mandatory character, namely the accused shall be released on bail. In
    view of the aforesaid language of the proviso to sub-section (2) of Section          c
     167 and in view of the expression used in Sanjay Dutt's case to the effect
    "if not availed of, the aforesaid decision will be of no assistance. The third
    decision referred to in Sanjay Dutt's case is case of A.K. Gopalan v. The Govt.
     of India, [1966] 2 S.C.R. 427. This was also a case for issuance of a writ
     of habeas corpus, filed under Article 32. In this case the Constitution Bench
                                                                                         D
     observed - "It is well settled that in dealing with a petition for habeas corpus,
    the Court has to see whether the detention on the date on which the
     application is made to the Court is legal, if nothing more has intervened
     between the date of the application and the date of hearing." In that case,
     the detenu was detained by orders passed on March 4, 1965 and the earlier
     order of detention passed on 29th December, 1964 was no longer in force,         E
     when the detenu filed the application in the Supreme Court. The Court,
•    therefore observed that it is not necessary to consider the validity of the
     detention order made on 29th Decemi r, 1964 and the Court is only con-
     cerned with the validity of the order of detention dated 4th March, 1965. The
     observations made by the Court and the principles enunciated referred to         F
     earlier would support our conclusion that the rights whether accrued or not
     to an accused, will have to be considered on the date, he filed the application
     for bail and not with reference to any later point of time. In Abdul Latif Abdul
     Walzab Sheikh v. B.K. Jha and Another, [1987] 2 SCC 22, final order of
     detention had been assailed, this Court had observed that in a habeas Corpus
     proceeding it is not a sufficient answer to say that the procedural requirements G
     of the Constitution and the statute have been complied with, before the date
     of hearing and, therefore, the detention should be upheld. The aforesaid
     observation had been made when there was no Advisory Board in existence
      to whom a reference could be made and whose report could be obtained, as
      required by the Constitution. Further the representation filed by the detenu - H
    898                        SUPREME COURT REPORTS                   [2001] 2 S.C.R.
A    had not been disposed of within the stipulated period, but an argument had            _/   -

     been advanced that by the date of hearing of the petition the representation
     had been disposed of. This Court did not accept the plea of the State and
     interfered with the order of detention. In interpreting the expression 'if not
     availed of in the manner in which we have just interpreted we are conscious
     of the fact that accused persons in several serious cases would get themselves
B
    released on bail, but that is what the law permits, and that is what the
    legislature wanted and an indefeasible right to an accused flowing from any
    legislative provision ought not to be defeated by a Court by giving a strained
    interpretation of the provisions of the Act. In the aforesaid premises, we are
    of the considered opinion that an accused must be held to have availed of
c   his right flowing from the legislative mandate engrafted in the proviso to sub-
    section (2) of Section 167 of the Code if he has filed an application after the
    expiry of the stipulated period alleging that no challan has been filed and he
    is prepared to offer the bail, that is ordered, and it is found as a fact that no
    challan has been filed within the period prescribed from the date of the arrest
    of the accused. In our view, such interpretation would subserve the purpose
D
    and the object for which the provision in question was brought on to the
    Statute Book. In such a case, therefore, even if the application for consid-
    eration of an order of being released on bail is posted before the Court after
    some length of time, or even if the Magistrate refuses the application
    erroneously and the a~cused moves the higher forum for getting formal order
E   of being released on bail in enforc~rnent of his indefeasible right, then filing
    of challan at that stage will not take away the right of the accused. Personal
    liberty is one of the cherished object of the Indian Constitution and depri-
                                                                                                •
    vation of the same can be only in accordance with law and in conformity
    with the provisions thereof, as stipulated under Article 21 of the Constitution.
F   When the law provides that the Magistrate could authorise the detention of
    the accused in custody upto a maximum period as indicated in the proviso
    to sub-section (2) of Section 167, any further detention beyond the period
    without filing of challan by the Investigating Agency would be a subterfuge
    and would not be in accordance with law and in conformity with the
    provisions of the Criminal Procedure Code, and as such, could be violative
G   of Article 21 of the Constitution. There is no provision in the Criminal
    Procedure Code authorising detention of an accused in custody after the
    expiry of the period indicated in the proviso to sub-section (2) of section 167
    excepting the contingency indicated in Explanation I, namely, if the accused
    does not furnish the bail. It is in this sense it can be stated that if after expiry
H   of the period, an application for being released on bail is filed, and the
                      U.M. ACHARYA v. STATE [PATTANAIK, J.]                    899
    accused offers to furnish the bail, and thereby avail of his indefeasible right    A
    and then an order of bail is passed on certain terms and conditions but the
    accused fails to furnish the bail, and at that point of time a challan is filed
    then possibly it can be said ihat the right of the accused stood extinguished.
    But so long as the accused files an application and indicates in the application
    to offer bail on being released by appropriate orders of the Court then the
                                                                                       B
    right of the accused on being released on bail cannot be frustrated on the oft
    chance of Magistrate not being available and the matter not being moved, or
    that the Magistrate erroneously refuses to pass an order and the matter is
    moved to the higher forum and a challan is filed in interregnum. This is the
    only way how a balance can be struck between the so called indefeasible right
    of the accused on failure on the part of the prosecution to file challan within    c
    the specified period and the interest of the society, at large, in lawfully
    preventing an accused for being released on bail on account of inaction on
    the part of the prosecuting agency. On the aforesaid premises, we would
    record our conclusions as follows :

           I. Under sub-section (2) of Section 167, a Magistrate before whom an        D
    accused is produced while the police is investigating into the offence can
    authorise detention of the accused in such custody as the Magistrate thinks
    fit for a term not exceeding 15 days in the whole.

           2. Under.the proviso to aforesaid sub-section (2) of section 167, the       E
    Magistrate may authorise detention of the accused otherwise than the custody


.   of police for a total period not exceeding 90 days where the investigation
    relates to offence punishable with death, imprisonment for life or imprison-
    ment for a term of not less than I 0 years, and 60 days where the investigation
    relates to any other offence.
                                                                                       F
           3. On the expiry of the said period of 90 days or 60 days, as the case
    may be, an indefeasible right accrues in favour of the accused for being
    released on bail on account of default by the Investigating Agency in the


-   completion of the investigation within the period prescribed and the accused
    is entitled to be released on bail, if he is prepared to and furnish the bail,
    as directed by the Magistrate.

           4. When an application for bail is filed by an accused for enforcement
                                                                                       G


    of his indefeasible right alleged to have been accrued in his favour on account
    of default on the part of the Investigating Agency in completion of the
    in~estigation within the specified period, the Magistrate/Court must dispose       H
    900                       SUPREME COURT REPORTS                  [2001] 2 S.C.R.
A   it of forthwith, on being satisfied that in fact the accused has been in custody
    for the period of 90 days or 60 days, as specified and no charge-sheet has
    been filed by the Investigating Agency. Such prompt action on the part of
    the Magistrate/Court will not enable the prosecution to frustrate the object of
    the Act and the legislative mandate of an accused being released on bail on
    account of the default on the part of the Investigating Agency in completing
B
    the investigation within the period stipulated.

          5. If the accused is unable to furnish bail, as directed by the Magistrate,   -~
    then the conjoint reading of Explanation I and proviso to sub-section 2 of
    Section 167, the continued custody of the accused even beyond the specified
C   period in paragraph (a) will not be unauthorised, and therefore, if during that
    period the investigation is complete and charge-sheet is filed then the so-
    called indefeasible right of the accused would stand extinguished.

          6. The expression 'if not already available of' used by this Court in
    Sanjay Dutt's case (supra) must be understood to mean when the accused files
D   an application and is prepared to offer bail on being directed. In other words,
    on expiry of the period specified in paragraph (a) of proviso to sub-section
    (2) of Section 167 if the accused files an application for bail and offers also
    to furnish the bail, on being directed, then it has to be held that the accused
    has availed of his indefeasible right even though the Court has not considered
    the said application and has not indicated the terms and conditions of bail,
E
    and the accused has not furnished the same.

           With the aforesaid interpretation of the expression 'availed of' if
    charge-sheet is filed subsequent to the availing of the indefeasible right by
    the accused then that right would not stand frustrated or extinguished,
F   necessarily therefore, if an accused entitled to be released on bail by appli-
    cation of the proviso to sub-section (2) of Section 167, makes the application
    before the Magistrate, but the Magistrate erroneously refuses the same and
    rejects the application and then accused moves the higher forum and while
    the matter remains pending before the higher fornrn for consideration a
    charge-sheet is filed, the so-called indefeasible right of the accused would not
G   stand extinguished thereby, and on the other hand, the accused has to be
    released on bail. Such an accused, who thus is entitled to be released on bail
    in enforcement of his indefeasible right will, however, have to be produced
    before the Magistrate on a charge-sheet being filed in accordance with
    Section 209 and the Magistrate must deal with him in the matter of
H   remand to custody subject to the provisions of the Code relating to bail
                            U.M. ACHARYA v. STATE [B.N. AGRAWAL, J.]                    901

    . ,._   and subject to the provisions of cancellation of bail, already granted in            A
            accordance with law laid down by this Court in the case of Mohd. Iqbal v.
            Stale of Maharashtra (supra).

                   Having indicated the position of law, as above and applying the same
            to the facts and circumstances of the present case, it appears that the
            prescribed period under paragraph (a) of the proviso to sub-section (2) of           B
            Section 167 expired on 16.8.2000 and the accused filed an application for
            being released on bail and offered to furnish the bail on 17.8.2000. The
            Magistrate, however, erroneou ;ly refused the bail prayer on the ground that
            the proviso lo sub-section (2) of Section 167 has no application lo case
            pertaining to MPID Act. The accused then moved the High Court. While the
            matter was pending before the Division Bench of the High Court, the learned
                                                                                                 c
            Public Prosecutor took an adjournment and the case was posted to 3 lsl
            August, 2000 and just the day before the charge-sheet was filed on 30th
             August, 2000 and thus the indefeasible right of the accused stood frustrated
             and the High Court refu5ed to release the accused on bail on a conclusion
             that the accused canout be said to have availed of his indefeasible right, as       D
             held in Sanjay Dutt's case (supra) since, be has not yet been released on bail.
             But in view of our conclusion as to when an accused can be said to have
             availed of bis right, in the case in hand, it has to be held that the accused
             availed of bis right on 17th August, 2000 by filing an application for being
             released on bail and offering therein to furnish the bail in question. This being   E
             the position, the High Court was in error in refusing that right of the accused
             for being released on bail. We, therefore, direct that the accused should be
             released on bail on such terms and conditions to the satisfaction of the learned
             Magistrate, and further the Magistrale would be entitleu to deal with the
             accused in accordance with law and observations made by us in this judg-
             ment, since the charge-sheet has already been filed.                                F
                   In accordance with the majority view, appeal stands allowed.

                  B.N. AGRAWAL, J. I have perused the judgm~nt of my learned
            Brother Pattanaik,J., for whom I have the highest regard and while agreeing
            with him with respect to conclusion nos. I to 5, I find myself unable to agree       G
            on conclusion no. 6, enumerated hereunder, upon which alone decision of this
            appeal is dependent, and observations and direction connected therewith:-
•
                      "The expression 'if not already availed of used by this Court in
                      Sanjay Dutt v. State through CBI Bombay, (II), (1994) 5 SCC 410,
                      must be understood to mean when the accused files an application and       H
    902                       SUPREME COURT REPORTS                  [2001] 2 S.C.R.
A            is prepared to offer bail on being directed. In other words, on expiry
             of the period specified in paragraph (a) of proviso to sub-section (2)
                                                                                        -<'
             of Section 167 if the accused files an application for bail and offers
             also to furnish the bail, on being directed, then it has to be held that
             the accused has availed of his indefeasible right even though the
             Court has not considered the said application and has not indicated
B
             the terms and conditions of bail, and the accused has not furnished
             the same."

           There was mushroom growth of financial establishments in the State
     of Maharashtra in the recent past. The sole object of these establishments was
C    of grabbing money received as deposits from public, mostly middle class and
    poor on the promises of unprecedented highly attractive rates of interest or
     rewards and without any obligation to refund the deposit to the investors on
    maturity or without any provision for ensuring rendering of the services in
     kind in return, as assured. Many of these financial establishments had
    defaulted to return the deposits on maturity or to pay interest or render the
D
     services in kind, in return, as assured to the public. As such deposits run into
    crores of rupees it had resulted in great public resentment and uproar, creating
    law and order problem in the State of Maharashtra, specially in the city like
    Mumbai. With a view to curb such unscrupulous activities of such financial
    establishments in the State of Maharashtra, it was found expedient to make
E   suitable special iegislation in public interest and accordingly Maharashtra
    Protection of Interest of Depositors (In Financial Establishment) Act, 1999
    (hereinafter referred to as 'the MPID Act') was enact~d by the Maharashtra
    Legislature, Section 3 whereo_f provided that any financial establishment,
    which fraudulently defaults any repayment of deposit on maturity along
F   with any benefit in the form of interest, bonus, profit or in any other form
    as promised or fraudulently fails to render service as assured against the
    deposit, every person including the promoter, partner, director, manager or
    any other person or an employee responsible for the management of or
    conducting of the business or affairs of such financial establishment shall, on
    conviction, be punished with imprisonment. for a term which may extend to
G   six years and with fine which may extend to one lac of rupees and such
    financial establishment also shall be liable to a fine which may extend to one
    lac of rupees.

         The respondent-State of Maharashtra filed a complaint in the Court of
H   the Special Judge, Greater Bombay, bearing C.R. No. 36 of 1999 for
                         UM. ACHARYA v. STATE [B.N. AGRAWAL, J.]                   903
         prosecution of the appellant for the offences under Sections 406 and 420 of       A
. ).._   the Indian Penal Code read with Section 3 of the MPID Act alleging therein
         that the appellant was carrying on business as a sole proprietor under the
         name and style of Mis. C.U. Marketing, C.U. Bhawan, S.V. Road, Andheri
         (W), Mumbai, during the course of which he collected about Rs. 450 crores
         from around 29000 depositors under a scheme floated by him promising
                                                                                           B
         thereunder to return the same on maturity together with highly attractive rates
         of interest, but failed to refund the same.

               The appellant surrendered before the Special Judge and was remanded
         to judicial custody by order dated 17.6.2000. The period of sixty days as
         contemplated by proviso to Section 167(2) of the Code 'of Criminal Proce-         c
         dure, 1973 (hereinafter referred to as 'the Code') was completed on 16.8.2000.
         On the next day, i.e., 17.8 WOO an application for being released on bail was
         filed on behalf of the appellant before the Special Judge alleging that no
         challan had been filed within the statutory period of sixty days and as such
         he was entitled to be released on bail under proviso to Section 167(2) of the
                                                                                           D
         Code. The said application was rejected by the Special Judge on the same
         day saying that the provisions of Section 167(2) .of the Code. were not
         applicable to the case on hand as the prosecution was for an -offenCe under
         Section 3 of the MPID Act as well to which the provisions of Section 167(2)
         of the Code had no application. Thereafter the appellant preferred an
         application before the Bombay High Court which was placed for hearing             E
         before a Division Bench on 29.8.2000 on which date argurne.nt on behalf of
         the appellant was concluded and the case was adjourned to 31.8.2000 for
         hearing learned Additional Advocate General representing the State. [II the
         meantime, challan was filed before the Special Judge on 30.8.2000. The
         High Court by its judgmeat dated 4.9.2000 came to the· "conclusion                F
         that proviso to Sectioh 167(2) of the Code was applicable even to cases
         filed for prosecution of an accused for offences under MPID Act. but as
         the challan had already been filed, in view of the Constitution Bench
         judgment of this Court in the case of Sanjay Dutt, it was not possible to


•
         consider the prayer for bail made on behalf of the accused on the ground of
         non submission of challan within tl1e period prescribed under proviso to          G
         Section 167(2) of the Code. The High Court also placed reliance upon other
         judgments of this Court.

    -f         In order to appreciate the point in issue, it would be useful to refer to
         the provisions of Section 167(2) of the Code which run thus:-                     H
    904                   SUPREME COURT REPORTS                  [2001) 2 S.C.R.

A         "S.167(2).- The Magistrate to whom an accused person is forwarded
          under this section may, whether he has or has not jurisdiction to try
          the case, from time to time, authorise the detention of the accused in
                                                                                     -<.
          such custody as such Magistrate thinks fit, for a term not exceeding
          fifteen days in the whole; and if he has no jurisdiction to try the case
          or commit it for trial, and considers further detention unnecessary, he
B
          may order the accused to be forwarded to a Magistrate having such
          jurisdiction:

               Provided that -

               (a) the Magistrate may authorise the detention of the accused
c         person, otherwise than in the custody of the police, beyond the
          period of fifteen days, if he is satisfied that adequate grounds exist
          for doing so, but no Magistrate shall authorise the detention of the
          accused person in custody under this paragraph for a total period
          exceeding, -
D
          (i) ninety days, where the investigation relates to an offence punish-
          able with death, imprisonment for life or imprisonment for a term of
          not less than ten years;

          (ii) sixty days, where the investigation relates to any other offence,
E         and, on the expiry of the said pen"od of ninety days, or sixty days, as
          the case may be, the accused person shall be released on bail if he
          is prepared to and does furnish bail, and every person released on bail
          under this sub-section shall be deemed to be so released
          under the provisions of Chapter XXXIII for the purposes of that
F         Chapter;

               (b) no Magistrate shall authorise detention in any custody under
          this section unless the accused is produced before him;

               (c) no Magistrate of the second class, not specially empowered
G         in this behalf by the High Court, shall authorise detention in the
          custody cf the police.

               Explanation I.- For the avoidance ofdoubts, it is hereby declared
          tha!, notwithstanding the expiry of the period specified in paragraph
          (a), the accused shall be detained in custody so long as he does not
H         furnish bail.
                      U.M. ACHARYA v. STATE [B.N. AGRAWAL, J.]                    905
                    Explanation II.- If any question arises whether an accused person     A
               was produced before the Magistrate as required under paragraph (b),
               the production of the accused person may be proved by his signature
               on the order authorising detention."
                                                                   [Emphasis added]

              It is settled by series of judgments of this Court in the last 25 years     B
      _that framers of the Code conceived and desired that after expiry of the period
      prescribed in proviso to Section 167(2) of the Code, an accused has to be
      released on bail if no challan is filed because after the expiry of the statutory
      period prescribed therein, there is no power in Magistrate to remand for
      further custody, but the same proviso prescribes in clause (a)(ii) that 'the
      accused person shall be released on bail if he is prepared to and does furnish
                                                                                          c
      bail'. To be released on bail because of the default of submission of challan
      within the statutory period is a valuable right of the accused, but tl1e
      framers of the Code have presctibed a condition in ihat very proviso referred
      to above that this right to be released on bail can be exercised only on
      furnishing of bail. Clause (a)(ii) of proviso to Section 167(2) of the Code not     D
      only says that the accused 'is prepared to', but also says that the 'accused
      does furnish bail' and Explanation I to Section 167(2) of the Code clearly
      mandates that "notwithstanding the expiry of the period specified in
      paragraph (a), the accused shall be detained in custody so long as he
      does not furnish bail". Just to test the scheme of the said provision, can it       E
      be conceived that if the accnsed is prepared to furnish bail but does
      not furnish the same, even in that eventuality the court concerned shall
      direct his release from custody only on the ground that the statutory period
       of filing the challan has expired? Therefore, in my view, for release from
       custody both the conditions aforesaid, read with the Explanation referred to
       above, must be fulfilled.                                                          F

-"I          The next question to be- considered is as to what will happen in a case
      where before any order directing release on bail is passed or before the bail
      bonds are furnished a challan is filed? It is well settled that once challan is
      filed, no sooner the court concerned applied its mind, cognizance shall be
      deemed to have been taken. Thereafter the power to remand the accnsed is
                                                                                          G
      under other provisions of the Code, including sub-section (2) of Section 309
      thereof. A Constitution Bench of this Court in the case of Sanjay Dutt while
      considering correctness of Division Bench decision of this Court in the case
      of Hitendra Vishnu Thakur & Ors. v. State of Maharashtra & Ors., (1994]
      4 sec   602, laid down the law in paragraphs 48 and 49 of the judgment which        H
                                                                                          -.

    906                      SUPREME COURT REPORTS                    [2001] 2 S.C.R.
A   read thus:-

             "48. We have no doubt that the common stance before us of the nature
             of indefeasible right of the accused to be released on bail by virtue
             of Section 20(4)(bb) is based on a correct reading of the principle
             indicated in that decision. The indefeasible right accruing to the
B            accused in such a situation is enforceable only prior to the filing of
             the challan and it does not survive or remain enforceable on the
             challan being filed, if already not availed of Once the challan has
             been filed, the question of grant of bail has to be considered and
             decided only with reference to the merits of the case under the
c           provisions relating to grant of bail to an accused after the filing of
             the challan. The custody of the accused after the challan has been
            filed is not governed by Section 167 but different provisions of the
             Code of Criminal Procedure. If that right had accrued to the accused
             but it remained unenforced till the filing of the challan, then there is
            no question of its enforcement thereafter since it is extinguished the
D
            moment challan is filed because Section 167 Cr.P.C. ceases to apply.
            The Division Bench also indicated that if there be such an application
            of the accused for release on bail and also a prayer for extension of
            time to complete the investigation according to the proviso in Section
            20(4)(bb), both of them should be considered together. It is obvious
E           that no bail can be given even in such a case unless the prayer for
            extension of the period is rejected. In short, the grant of bail in such
            a situation is also subject to refusal of the prayer for extension of time,
            if such a prayer is made. If the accused applies for bail under this
            provision on expiry of the period of 180 days or the extended period,
F           as the case may be, then he has to be released on bail forthwith. The
            accused, so released on bail may be arrested and committed to
            custody according to the provisions of the Code of Criminal Proce-
            dure. It is settled by Constitution Bench decisions that a petition
            seeking the writ of habeas corpus on the ground of absence of a valid
            order of remand or detention of the accused, has to be dismissed, if
G           on the date of return of the rule, the custody or detention is on the
            basis of a valid order. (See Naranjan Singh Nathawan v. State of
            Punjab, AIR (1952) SC 106; Ram Narayan Singh v. State of Delhi,
            AIR (1953) SC 277 and A.K. Gopalan v. Government of India, AIR
            (1966) SC 816)".
H                                                                   [Emphasis added]
                        U.M. ACHARYA v. STATE [B.N. AGRAWAL, J.]                    907
                 "49. This is the nature and extent of the right of the accused to be       A
--).-            released on bail under Section 20(4)(bb) of the TADA Act read with
                 Section 167 Cr.P.C. in such a situation. We clarify the decision of the
                 Division Bench in Hitendra Vishnu Thakur, accordingly, and if it gives
                 a different indication because of the final order made therein, we
                 regret our inability to subscribe to that view".
                                                                                            B
                                                                     [Emphasis added]

              On a bare perusal of law enunciated above, it would be clear that th6 ..
        Constitution Bench considered and in unequivocal terms disapproved the ratio
        of decision in the case of Hitendra Vishnu Thakur wherein it was laid down
        by a Division Bench of this Court that if for any reason the right of the
                                                                                            c
        accused to be released on bail under provis~ to Section 167(2) of the Code
        has been denied then it can be exercised at a later stage even if challan is
        filed after expiry of the statutory period prescribed.

               The Constitution Bench in the aforesaid judgment has clearly laid down       D
        that the indefeasible right of the accused "is enforceable only prior to the
        filing of the challan and it does not survive or remain enforceable on the
        challan being filed, 'if not already availed of'. [Emphasis added]. It has
        further laid down that custody of the accused after challan has been filed is
        not governed by the provisions of Section 167 of the Code, but different            E
        provisions of the Code. The right of the accused cannot be enforced after the
        challan is filed 'since it is extinguished the moment challan is filed', The case
        of Sanjay Dutt also referred to the views expressed by the three earlier
        Constitution Benches of this Court in connection with writ of habeas corpus
        on the ground that there was no valid order of remand passed by the court
        concerned. It has reiterated that a petition seeking writ of habeas corpus on       F
        the ground of absence of a valid order of remand or detention of the accused
        has to be dismissed if on the date of the return of the rule the custody or
        detention is on the basis of a valid order. [Emphasis added].

              If the writ petition filed either under Article 32 or Article 226 of the      G
        Constitution, as the case may be, for issuance of a writ of habeas corpus on
        the ground that accused was under custody without a valid order df 1/'mand
        has to be dismissed if during the pendency of such a petition a valid order
        of remand has been passed by the court concerned then the right of an
        accused claiming relief on the ground that he has a statutory right under
                                                                                            H
        proviso to Section 167(2) cannot be put on a higher footing than the
     908                      SUPREME COURT REPORTS                    [2001] 2 S.C.R.
 A   constitutional right.

            Out of the three Constitution Bench decisions of this Court referred to
     above and relied upon in the case of Sanjay Dutt, in the case of Naranjan
     Singh Nathawan & Ors. v. State of Punjab, AIR (1952) SC 106, Patanjali                •
     Sastri, C.J., as he then was, speaking for himself, M.C.Mahajan, B.K.
B    Mukherjea, S.R. Das and Chandrasekhara Aiyar, JJ., while considering an
     application for issuance of writ of habeas corpus whereby .order of detention
     issued under Section 3 of the Preventive Detention Act, 1950 was challenged,
     laid down the law at page 108 as follows:-

                    "This is undoubtedly true and this Court had occasion in the re-
c                   cent case of Makhan Singh v. State of Punjab, Pein. No. 308 of
                    1951: AIR 39 (1952) S.C.27, to observe 'it cannot too often be
                    emphasised that before a person is deprived of his personal lib-
                    erty the procedure established by law must be strictly followed
                    and must riot be departed from to the disadvantage of the person
D                   affected'.
                                    '            '




             This proposition. however, applied with equal force to cases of
             preventive detention before the commencement of the Constitution,
             and it is difficult to .see what difference .the Constitution makes in
             regard to the position. Indeed, the position is now made more clear
E            by the express provisions of S.13 of the Act which provides that a
             detention order may at any time be revoked or modified and that such
             revocation shall not bar the making of a fresh detention order under
             S.3 against the same person. Once it is conceded that in habeas
             corpus proceedings the Court is to have regarrl to the legality or
F            otherwise of the detention at the time of the return and not witb
             reference to the date of the institution of the proceeding, it is difficult
             to hold, in the absence of proof of bad faith, that the detaining
             authority cannot supersede an earlier order of detemion challenged
             as illegal and make a fresh order wherever possible which is free
             from defects and duly complies with the requirements of the· Jaw in
G            that behalf."
                                                                    [Emphasis ·added]

          In another Constitution .Bench decision of this Court in the case of Ram
     Narayan Singh v. The State of Delhi & Ors., AIR (1953) SC 277, reliance
,H   whereupon has also been placed in Sanjay Dutt's case, again while consid-
                      U.M. ACHARYA v. STATE [B.N. AGRAWAL, J.]                    909
      ering a petition for issuance of writ of habeas cmpus, Patanjali Sastri, C.J.        A
    . as he then was, noticed with approval, the law already laid down in the case
      of Naranjan Singh (supra) and observed at page 278 thus:-

              "It has been held by this Court that in habeas corpus proceedings the
              Court is to have regard to the legality or otherwise of the detention
              at the time of the return and not with reference to the institution of       B
              the proceedings."
                                                                 [Emphasis added]

            Similarly, again the Constitution Bench in its dictum. in the famous case
     of A.K. Gopalan v. Government of India, AIR (1966) SC 816, was consid-                c
     ering ar1 application ~der Article 32 of the Constitution of India for issuance
     of a wl:it of habeas corpus challenging an order of detention issued under the
     Defence of India Rules·wherein Wanchoo,J., speaking for himself and on
     behalf of P.B.Gajendragadkar, C.J., M. Hidayatullah, R.S. Bachawat & V.
     Rarnawarni,JJ., laid down the law that in dealing with a petition for habeas
     corpus the Court has to see whether after the filing of the writ and before           D
     the date of hearing there was any intervening factor, meaning thereby that
     if on the date of filing of the writ a person was under detention without there
     being any valid order, but if on the date of hearing a person was in detention
     under. a valid order, merely because the detention on the date of the filing
     of the petition was invalid, the same cannot be a ground for issuance of writ         E
     of habeas corpus.

            It is true that the right of an accused to be released on bail for default
      in submission of challan is a valuable and indefeasible right, but by the
      time the court is considering the exercise of the said right if a challan is filed
      then the question of grant of bail has to be considered only with reference          F
      to merits of the case under the provisions of the Code relating to grant
      of bail after filing of the challan which view is consistent with the
I     view expressed by different Constitution Benches of this Court in several
      decades in coIUiection with the issuance of writ of habeas corpus as well as
      for grant. of bail.                                                                  G
            My learned Brother has referred to the expression 'if not already
      availed, of referred to in the judgment in Sanjay Dutt's case for arriving at
      conclusion no. 6. According to me, the expression 'availed of' does not mean
      mere filing of application for bail expressing therein willingness of the .
      accused to·' furnish bail bond. What will happen if on the 61 st day an H
    910                       SUPREME COURT REPORTS                  [2001] 2 S.C.R.
A   application for bail is filed for being released on bail on the ground of default
    by not filing the challan by the 60th day and on the 6lst day the challan is
    also filed by the time the Magistrate is called upon to apply his mind to the
    challan as well as the .petition for grant of bail? In view of the several
    decisions referred to above and the requirements prescribed by clause (a)(ii)
    of proviso read with Explanation I to Section 167(2) of the Code, as no bail
B
    bond has been furnished, such an application for bail has to be dismissed
    because the stage of proviso to Section 167(2) is over, as such right is
    extinguished the moment challan is filed.

           In this background, the expression 'availed of does not mean mere
c   filing of the application for bail expressing thereunder willingness to furnish
    bail bond, but the stage for actual furnishing of bail bond must reach. If
    challan is filed before that, then there is no question of enforcing the right,
    howsoever valuable or indefeasible it may be, after filing of the challan
    because thereafter the right under default clause cannot be exercised.

D          In case the court concerned has adopted any dilatory tactics or an
    attitude to defeat the right of the accused to be released on bail on the ground
    of default, the accused should immediately move the superior court for
    appropriate direction. But if the delay is bona fide and unintentional and in
    the meantime challan is filed then in view of the aforesaid judgments of this
E   Court, such a petition has to be dismissed and it cannot be said that the
    accused has already availed of the right accruing under proviso to Section
    167 of the Corie. It need no: be repeated that the right accruing under proviso
    to Section 167(2) of the Code on the expiry of the statutory period of sixty
    days cannot be said to have been availed of by mere making of an application
    for bail expressing therein willingness to furnish bail, but on furnishing bail
F   bond as required under clause (a)(ii) of proviso read with Explanation I to
    Section I 67(2) of the Code. If because of any bona fide view or proc~dure
    adopted by the court concerned some delay is caused and in the meantime
    challan is filed, the Court has no power to direct release under proviso to
    Section 167(2) of the Code.
G         The present case, where the prosecution was for an offence under the
    MPID Act, being a case of first impression, the Court concerned was of bona
    fide opinion that the provisions of Section 167(2) of the Code were not
    applicable. That view of the Special Judge was reversed by the High Court,
    but before it could fully apply its mind, the challan was filed. In this
H   background, I am clearly cif the opinion that the right of the accused to be
                     U.M. ACHARYA v. STATE [B.N. AGRAWAL, J.]                   911
     enlarged on bail under proviso to Section 167(2) of the Code cannot be said        A
~·   to have been 'availed of in the present case.

            This being the position, I have no option but to hold that the High Court
     has not committed any error in passing the impugned order so as to be
     interfered with by this Court.
                                                                                        B
            Accordingly, the appeal is dismissed.

     M.P.                                                          Appeal allowed.


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