Holding

Bail under Section 37 of the NDPS Act can be granted only if the court is satisfied of reasonable grounds to believe the accused is not guilty and that he is unlikely to commit any offence, and the High Court failed to make such findings, so the bail order was set aside.

Summary

The Union of India appealed a High Court order that granted bail to Shri Shiv Shanker Kesari, who was charged under the NDNDPS Act for possession of a large quantity of poppy straw. The Supreme Court examined Section 37 of the NDPS Act, which mandates that bail may be granted only if the court is satisfied that there are reasonable grounds to believe the accused is not guilty and that he is unlikely to commit any offence while on bail. The Court clarified that "reasonable grounds" means more than prima facie evidence and requires substantial probable cause. It also held that the bail court is not required to record a finding of not guilty, but must expressly satisfy the two statutory conditions. Since the High Court failed to record findings on either condition and did not explain why the contraband was not exclusively possessed by the accused, the Supreme Court set aside the bail order and directed the High Court to rehear the application after the accused surrenders to custody.

Issues considered

Whether the High Court correctly applied Section 37(1)(b)(ii) of the NDPS Act in granting bail.
Interpretation of the term "reasonable grounds" under Section 37 of the NDPS Act.
Whether a bail court must record a finding of not guilty before granting bail.
Whether exclusive possession of the contraband by the accused is a prerequisite for bail under the NDPS Act.

Legislation cited

Code of Criminal Procedure, 1973
Narcotic Drugs and Psychotropic Substances Act, 1985s. 37(1)(b)(ii), s. 67

Subjects

bailNDPS Actreasonable groundsexclusive possessioncriminal procedureSupreme Court

Judgment

A UNION OF INDIA
v.
SHRI SHIV SHANKER KESARI

SEPTEMBER 14, 2007

B (DR. ARIJIT PASA YAT AND D.K. JAIN, JJ.)

Narcotic Drugs and Psychotropic Substances Act, 1985: s.37(l)(b)(ii)-
Grant of bail-Consideration for-Held : Court required to consider if there
C were reasonable grounds for believing that accused is not guilty and that
he is not likely to commit any offence while on bail-But not to record any
finding that accused is not guilty.

Words and phrases: Word 'reasonable'-Meaning of-Discussed

D Prosecution case was that the respondent was found in possession of
huge quantity of poppy straw. The Special Judge rejected the bail application
made by the respondent. The High Court by the impugned order accepted the
prayer for bail on the ground that the recovery was not from the exclusive
possession of the accused-respondent and other members of the family are
involved in the case.
E
In appeal to this court, appellant contended that prayer for bail was
rightly rejected by the District Judge in terms ofS. 37 of the NDPS Act after
elaborately dealing with the background facts.

Allowing the appeal, the Court
F ..
HELD: 1. S. 37 of NDPS Act provided that no person shall be granted
bail unless the two conditions are satisfied. They are: the satisfaction of the
Court that there are reasonable grounds for believing that the accused is not
guilty and that he is not likely to commit any offence while on bail. Both the
conditions have to be satisfied. If either of these two conditions is not satisfied,
G the bar operates and the accused cannot be released on bail. The expression
used in S. 37(1)(b)(ii) is "reasonable grounds". The expression means
something more than prima facie grounds. It connotes substantial probable
causes for believing that the accused is not guilty of the offence charged and
this reasonable belief contemplated in turn points to existence of such facts

H 964
U.0.1. v. SHRISHIVSHANKERKESARI 965
and circumstances as are sufficient in themselves to justify recording of A
satisfaction that the accused is not guilty of the offence charged.
!Paras 6 and 7) (967-G, H; 968-A, Bl

2.1. The word "reasonable" has in law the prima facie meaning of
reasonable in regard to those circumstances of which the actor, called on to
act reasonably, knows or ought to know. It is difficult to give an exact definition B
of the word 'reasonable'. Stroud's Judicial Dictionary, Fourth Edition, page
2258 states that it would be unreasonable to expect an exact definition of the
word "reasonable'. Reason varies in its conclusions according t{) the
idiosyncrasy of the individual, and the times and circumstances in which he
thinks. The reasoning which built up the old scholastic logic sounds now like C
the jingling of a child's toy. It is often said "an attempt to give a specific
meaning to the word 'reasonable' is trying to count what is not number and
measure what is not space". IParas 8 and 9) 1968-C, D, E)

Municipal Corporation of Delhi v. Mis Jagan Nath Ashok Kumar and
Anr., 119871 4 SCC 497 and Gujarat Water Supplies and Sewerage Board v. D
Unique Erectors (Gujarat) Pvt. Ltd and Anr., (198911 SCC 532, relied on.

2.2. The word 'reasonable' signifies "in accordance with reason". In
the ultimate analysis it is a question of fact, whether a particular act is
reasonable or not depends on the circumstances in a given situation.
(Para 1011968-F) E
Municipal Corporation of Greater Mumbai and Anr. v. Kam/a Mills Ltd,
120031 6 sec 315, relied on.

3. The Court while considering the application for bail with reference
to S. 37 of the Act is not called upon to record a finding of not guilty. It is for F
the limited purpose essentially confined to the question of releasing the
accused on bail that the Court is called upon to see if there are reasonable
grounds for believing that the accused is not guilty and records its satisfaction
about the existence of such grounds. But the Court has not to consider the
matter as if it is pronouncing a judgment of acquittal and recording a finding G
of not guilty. Additionally, the Court has to record a finding that while on bail
the accused is not likely to commit any offence and there should also exist
some materials to come to such a conclusion.
(Paras 1 t and 1211968-G, H; 969-A, B\

4. In the instant case, it appears that there was a statement recorded H
%6 SUPREME COURT REPORTS [2007] 9 S.C.R.

A under S. 67 of the Act The respondent has taken a stand that the same was
under coercion. The acceptability of such a stand is a matter of trial.
Additionally, the High Court has not indicated any reason as to why it was of
the view that the contraband articles were not seized from the exclusive
possession of the accused-respondent. (Para 13) (969-B, C)

B CRIMINAL APPELLATE JURISDICTION: Criminal Appeal No. 1223 of
2007.

From the Judgment and Order dated 22.03.2005 of the High Court of
Judicature at Allahabad in Bail No. 5291 of2005.

C Vikas Singh, ASG., Indra Sawhney and Sushma Suri for the Appellant.

Manoj Prasad for the Respondent.

The Judgment of the Court was delivered by

D DR. ARIJIT PASAYA T, J. I. Leave granted.

2. Challenge in this appeal is to the grant of bail by a learned Single
Judge of the Allahabad High Court to the respondent who was charged for
alleged commission of offence punishable under Sections 8, 15, 27A and 29
of the Narcotic Drugs and Psychotropic Substances Act, 1985 (in short the
E 'Act'). Allegation was that he was found to be in possession of huge quantity
of poppy straw. It is the case of the prosecution that the raiding party seized
nearly 400 Kg. of poppy straw from the possession of the accused-respondent.
The prayer for bail made by the respondent was rejected by learned Special
Judge (NDPS Act), Varanasi. The High Court by the impugned order accepted
F the prayer for bail on the ground that the recovery was not from the exclusive
possession of the ·accused-respondent and other members of the family are
involved in the case. It was noted that the respondent had no criminal history.
Accordingly, the prayer for grant of bail was allowed.

3. According to learned counsel for the appellant'the parameters of
G Section 37 of the Act have not been kept in view while accepting the prayer
for grant of bail. It was pointed out that huge quantity of poppy straw was
recovered from the possession of the respondent from house No.K.63/121,
Gola D~,ena Nath, Varanasi. It is submitted that the prayer for bail was rejected
by the District Judge in terms ·Of Section 37 of the Act after elaborately
dealing with the background facts. Bail can only be granted on fulfilllnent of
H
U.0.1. v. SHRISHNSHANKERKESARI[PASAYAT,J.] 967

two conditions i.e. (i) where there are reasonable grounds for believing that A
the accused is not guilty of the offence and (ii) that he is not likely to commit
any offence while on bail. Learned Single Judge while accepting the prayer
for bail has not recorded any finding that there are reasonable grounds for
believing that the accused was not guilty. Further, no finding has been
recorded that he is not likely to commit any offence while on bail.
B
4. Learned counsel for the respondent on the other hand submitted that
the prosecution has failed to establish exclusive possession and the applicant-
respondent had no criminal history. Therefore, it was submitted that the order
of the High Court does not suffer from any infirmity.

5. Section 37 of the Act reads as follows: c
"Offences to be cognizable and non-bailable-(1) Notwithstanding
anything contained in the Code of Criminal Procedure, 1973 (2) of
1974,-

(a) every offence punishable under this Act shall be cognizable; D
(b) no person accused of an offence punishable for a term of
imprisonment of five years or more under this Act shall be released
on bail or on his own bond unless-
(i) the Public Prosecutor has been given an opportunity to oppose E
the application for such release, and
(ii) where the Public Prosecutor opposes the application, the
Court is satisfied that there are reasonable grounds for believing
that he is not guilty of such offence and that he is not likely to
ro~it~o~~~~oo~. F
(2) The limitations on granting of bail specified in clause (b) of su,b-
section (1) are in addition to the limitations under the Code of Criminal
Procedure, 1973 (2 of 1974) or any other law for the time being in force
on granting of bail".

6. As the provision itself provides no person shall be granted bail G
unless the two conditions are satisfied. They are; the satisfaction of the Court
that there are reasonable grounds for believing that the accused is not guilty
and that he is not likely to commit any offence while on bail. Both the
conditions have to be satisfied. If either of these two conditions is not
satisfied, the bar operates and the accused cannot be released on bail. H
968 SUPREME COURT REPORTS [2007] 9 S.C.R.

A 7. The expression used in Section 37 (I)(b) (ii) is "reasonable grounds".
The expression means something more than prima facie grounds. It connotes
substantial probable causes for believing that the accused is not guilty of the
offence charged and this reasonable belief contemplated in·.tum points to
existence of such facts and circumstances as are sufficient in themselves to
B justify recording of satisfaction that the accused is not guilty of the offence
charged.

8. The word "reasonable" has in law the prima facie meaning ofreasonable
in regard to those circumstances of which the actor, called on to act reasonably,
knows or ought to know. It is difficult to give an ~xact definition of the word
C 'reasonable'. Stroud's Judicial Dictionary, Fourth Edition, page 2258 states that
it would be unreasonable to expect an exact definition of the word "reasonable'.
Reason varies in its conclusions according to the idiosyncrasy of the
individual, and the times and circumstances in which he thinks. The reasoning
which built up the old scholastic logic sounds now like the jingling of a child's
toy. (See: Municipal Corporation of Delhi v. Mis Jagan Nath Ashok Kumar
D and Anr., [1987] 4 SCC 497. and Gujarat Water Supplies and Sewerr,;ige Board
v. Unique Erectors (Gujarat) Pvt. Ltd. and Anr., [i 989] I SCC 532).

9. It is often said "an attempt to give a specific meaning to the word
'reasonable' is trying to count what is not number and measure what is not
space". The author of 'Words and Phrases' (Permanent Edition) has quoted
E from in re Nice & Schreiber 123 F. 987, 988 to give a plausible meaning for
the said word. He says, "the expression 'reasonable' is a relative term, and the
facts of the particular controversy must be considered before the question as
to what constitutes reasonable can be determined". It is nc;>t meant to be
expedient or convenient but certainly something more than that.
F ,...
10. The word 'reasonable' signifies "in accordance with reason". In the
ultimate analysis it is a question of fact, whether a particular act is reasonable
or not depends on the circumstances in a given situation. (See: Municipal
Corporation of Greater Mumbai and Anr. v. Kam/a Mills Ltd., [2003] 6 SCC
315).
G
11. The Court while considering the application for bail with reference
to Section 37 of the Act is not called upon to record a finding of not guilty.
It is for the limited purpose essentially confined to the question of releasing
the accused on bail that' the Court is dilled upon to see if there are reasonable
grounds for believing that the accused is not guilty and records its satisfaction
H about the existence of such grounds. But the Court has not to consider the
U.O.I. v. SHRISHIVSHANKERKESARI[PASAYAT,J.] 969

matter as if it is pronouncing a judgment of acquittal and recording a finding A
of not guilty.

12. Additionally, the Court has to record a finding that while on bail the
accused is not likely to commit any offence and there should also exist some
materials to come to such a conclusion.
B
13. In the instant case, it appears that there was a statement recorded
under Section 67 of the Act. The respondent has taken a stand that the same
was under coercion. The acceptability of such a stand is a matter of trial.
Additionally, the High Court has not indicated any reason as to why it was
of the view that the contraband articles were not seized from the exclusive C
possession of the accused-respondent.

14. Above being the position, the impugned order is clearly
unsustainable and is set aside. The bail application shall be considered afresh
by the High Court keeping in view the parameters of Section 37 of the Act.
The bail application shall be taken up after the accused surrenders to custody. D
The accused-respondent is directed to forthwith surrender to custody. The
High Court would do well to dispose of the bail application expeditiously after
the accused surrenders to custody.

15. The appeal is allowed.
E
D.G. Appeal allowed.