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Serious Fraud Investigation Office v. Aditya Sarda & Others, 2025

Anticipatory bail denied to absconding accused in ₹1700 crore corporate fraud case for obstructing judicial process and violating Section 212(6) of the Companies Act.

Supreme Court of India·11 April 2025
Serious Fraud Investigation Office v. Aditya Sarda & Others, 2025
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Judgement Details

Court

Supreme Court of India

Date of Decision

11 April 2025

Judges

Justice Bela M. Trivedi ⦁ Justice P.B. Varale

Citation

Acts / Provisions

Section 438 of Code of Criminal Procedure, 1973 Section 212(6), Companies Act, 2013 Section 420 of Indian Penal Code, 1860 Section 447 of Companies Act, 1956 & 2013

Facts of the Case

    • Allegations of a ₹1700 crore financial fraud by Adarsh Credit Cooperative Society Ltd. and related entities.

  • SFIO probe revealed illegal loans extended to 70 shell companies controlled by the accused.

  • Chargesheets were filed; bailable and then non-bailable warrants were issued against the accused after they failed to appear.

  • Despite rejection of anticipatory bail by the Special Court, the Punjab and Haryana High Court granted regular bail.

  • SFIO challenged this grant before the Supreme Court via SLP.

Issues

  1. Can an absconding accused or one avoiding court summons/warrants be granted anticipatory bail?

  2. Did the High Court err in granting bail despite non-cooperation with investigation/trial?

  3. What is the effect of Section 212(6) of the Companies Act in bail proceedings?

Judgement

  • The Court held that an absconding accused or one avoiding summons/warrants is not entitled to the extraordinary privilege of anticipatory bail.

  • The High Court failed to apply the twin conditions under Section 212(6) of the Companies Act, which are mandatory for granting bail in serious fraud cases.

  • “Law aids only the abiding and not its resistants” – persons who dodge legal processes undermine the justice system and cannot claim equitable relief.

  • The accused avoided appearance despite NBWs and proclamation proceedings; such conduct obstructs justice and wastes judicial time, including that of magistrates. The High Court’s bail order was quashed. The accused were directed to surrender within one week.

  • The Court emphasized that delaying tactics, such as not responding to summons or warrants, amount to obstruction in administration of justice.

Held

  • Accused persons who abscond or interfere with the execution of warrants cannot be granted anticipatory bail, particularly in serious economic offences.

  • High Court erred in granting bail without considering:
    • The conduct of the accused,
    • The gravity of the offence, and
    • The mandatory provisions under Section 212(6).

  • The appeal was allowed, and the respondents were ordered to surrender within one week.

Analysis

  • The Supreme Court reiterated the exceptional nature of anticipatory bail and laid down a conduct-based approach to its grant.

  • It clarified that non-cooperation with the trial process disqualifies an accused from seeking such relief, especially in white-collar crimes.

  • The ruling has reinforced the importance of accountability and cooperation in trial proceedings.

  • It sends a strong signal against misuse of bail provisions by economic offenders who use delay tactics to avoid arrest.

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