Mumbai, August 14, 2023 (Gr. Bombay Special Court): The Designated Court under the Maharashtra Protection of Interest of Depositors (MPID) Act, located at the City Civil & Sessions Court in Mumbai, has granted bail to Mr. Rajendra Chandrakant Jagtap under Section 167(2) of the Code of Criminal Procedure (Cr.P.C.) due to the investigating agency’s failure to file a charge sheet within the stipulated 90-day period.

The order, dated August 14, 2023, was issued by His Honour Judge Shri S. B. Joshi (Court Room No. 7) in Bail Application No. 684 of 2023. Mr. Jagtap was arrested on May 12, 2023, in connection with Crime No. 832 of 2022 registered with Goregaon Police Station, Mumbai. He is accused of offences punishable under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant, banker, merchant or agent), and 420 (cheating) of the Indian Penal Code¹ (IPC), as well as Sections 3 (fraudulent default by financial establishment) and 4 (offences and punishment) of the MPID Act.

Applicant’s Argument for Default Bail:

Mr. Jagtap applied for bail under Section 167(2) Cr.P.C., arguing that the charge sheet had not been filed within the 90-day period prescribed by law.

Court’s Reasoning and Decision:

Judge S. B. Joshi reviewed the remand papers and confirmed that Mr. Jagtap was arrested on May 12, 2023. Under Section 167(2)(a)(i) Cr.P.C., an accused cannot be detained beyond 90 days if the investigation is not complete for offences punishable with imprisonment for life, 10 years or more. Since Section 409 IPC carries a potential life sentence or imprisonment up to 10 years, this provision applied.

The court noted a report from the Assistant Superintendent of the court, dated August 11, 2023, confirming that the charge sheet had not been filed by 11:58 a.m. on that date. The 90-day period, calculated from the date of arrest (May 12, 2023), expired on August 9, 2023. Mr. Jagtap’s application was filed on August 11, 2023, after the expiry of this period.

Therefore, the court concluded that Mr. Jagtap was entitled to “default bail” under Section 167(2)(a)(i) Cr.P.C. due to the investigating agency’s failure to file the charge sheet within the mandated timeframe.

The Order:

Judge S. B. Joshi issued the following order:

1. Bail Application No. 684 of 2023 is allowed.
2. Mr. Rajendra Chandrakant Jagtap is to be released under Section 167(2) of the Code of Criminal Procedure, 1973, upon executing a Personal Bond (PR bond) of ₹3,00,000 (Rupees Three Lakhs only) and providing one or two surety bonds of a like amount.
3. The release is subject to the following conditions:
   • Mr. Jagtap must attend the Police Station/EOW every Tuesday between 10:00 a.m. and 12:00 noon until the charge sheet is filed.
   • He must provide a written undertaking not to tamper with the investigation, evidence, or pressurize witnesses.
   • He must provide a written undertaking not to travel abroad without the Trial Court’s/concerned Court’s permission.
   • He must provide proof of his residential address and the phone/cell numbers of two close relatives to the Investigating Officer (I.O.).
   • He must not alienate any valuable movable or immovable property in his name or the names of his blood relatives without prior permission from the concerned Court.
   • Breach of any of these conditions may lead to the prosecution/Investigating Officer applying for cancellation of his bail.
4. The Jailor was instructed to inform Mr. Jagtap of the order for immediate action. The SPP/EOW/I.O. were also directed to take note of the order.
5. Bail Application No. 684 of 2023 was disposed of accordingly.

This order highlights the importance of timely filing of charge sheets by investigating agencies and the accused’s right to default bail if this timeline is not adhered to, as enshrined in Section 167(2) Cr.P.C.