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High Court of KeralaSingle JudgeApplications allowed; bail granted to the petit...

Bail Applications Nos. 2010, 2015, 2018 and 2022 of 2024, High Court of Kerala at Ernakulam

Case / Petition Number:Bail Application Nos. 2010/2024; 2015/2024; 2018/2024; 2022/2024

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C.S. Dias
Judgment Date
2024-03-19
Court Decision / Holding
The applications are allowed. The court granted bail to the petitioner on execution of a bond for Rs. 1,00,000 with two solvent sureties of Rs. 1,00,000 each, subject to conditions: (i) IO appearance every alternate Saturday 9:00–11:00 a.m. for two months or until final reports; (ii)-(iii) refrain from inducement or tampering; (iv) no new offences while on bail; (v) surrender/passport obligations; (vi) furnish present and permanent address and mobile number; (vii) court may cancel bail on violation; (viii) authorities may continue investigation and recovery as per law and as guided by Sushila Aggarwal. The decision reflects a cautious, conditional bail approach in line with established bail principles to balance liberty with the integrity of the investigation.
Final Disposition
Applications allowed; bail granted to the petitioner under specified terms.

Parties to the Case

Appellants / Petitioners

  • Reghunath P Menon

Respondents

  • State of Kerala represented by Public Prosecutor, High Court of Kerala, Ernakulam

Legal Representation & Advocates

Counsels for Petitioners

  • • Unni Sebastian Kappen
  • • V.A. Johnson (Varikkappallil)

Counsels for Respondents

  • • Public Prosecutor, High Court of Kerala (Sr PP C.S Hrithwik)
  • • Public Prosecutor, High Court of Kerala (Smt Neema T.V)
  • • Public Prosecutor, High Court of Kerala (Smt Seetha S)

Case Synopsis & Summary

These are four consolidated bail applications filed by Reghunath P Menon, the fifth accused in Crime Nos. 47/2023, 1918/2023, 1919/2023 and 1921/2023 of the CBCID, Thrissur. The offences alleged involve criminal breach of trust and cheating under sections 406 and 420 IPC, alongside provisions of the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act) (Sec. 3 read with Sec. 21; Sec. 5 read with Sec. 23). The petitioner has been in judicial custody since 9 October 2023; arrest entries were finalized in early 2024 and final reports have been laid. The cases arose from similar deposit-related transactions by the company Safe and Strong Business Consultancy Private Ltd. Due to the similarity of transactions, the applications were consolidated, heard together, and disposed of by a common order. The petitioner’s counsel contends total innocence, false implication, and that investigation is complete with final reports. It is also argued that Annexure-2 shows the court had already enlarged the petitioner on bail in a similar offence, supporting a bail grant here. The Public Prosecutor opposes bail, citing the petitioner’s involvement in numerous cases and the risk of interference with the investigation if released. The court, after careful consideration, grants bail subject to a bond of Rs. 1,00,000 with two solvent sureties of equal amount, and imposes conditions including regular IO appearances, no intimidation or tampering, no passport, and disclosure of addresses and phone numbers, with a provision to cancel bail for violations. The order cites the guiding principles in Sushila Aggarwal v. State of Delhi for imposing lawful conditions on bail.

Provisions of Law Cited

Section 439, CrPC (Code of Criminal Procedure, 1973)Sections 406 and 420, IPCSection 3 read with Section 21, BUDS ActSection 5 read with Section 23, BUDS Act

Legal Doctrines & Maxims

  • Sushila Aggarwal v. State of Delhi and another, 2020 (1) KHC 663 (cited for imposing bail conditions to secure the investigation)
  • Bail jurisprudence permitting conditional release to ensure ends of justice

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner’s counsel submitted that the petitioner is totally innocent and has been falsely implicated. He has remained in custody since 9.10.2023, with investigation complete and final reports filed. Reliance was placed on Annexure-2 showing the court’s previous bail in a similar offence, indicating there is no justification for keeping him in detention. The counsel argued for release on bail to prevent prolonged incarceration and to enable the petitioner to assist in proceedings. They stressed that the offences are systemic to a corporate entity with similar transactions and that strict monitoring conditions, including reporting and attendance, would suffice to protect the investigation.

Contentions of Respondents

The Public Prosecutors opposed bail, highlighting that the petitioner faces multiple black-letter records (in up to 271 cases) and that CBCID investigations are still ongoing. They argued that releasing the petitioner could derail ongoing inquiries, facilitate tampering or evasion, and undermine public interest in recovering deposits and prosecuting the violative scheme.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Sushila Aggarwal v. State of Delhi and another2020 (1) KHC 663PositiveCited as authority for imposing lawful bail conditions to secure the ends of justice and protect the investigation while granting bail.

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Extracted Judgment Text

Exact text extracted from official judgment records.

1 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE C.S.DIAS ``` ``` TUESDAY, THE 19[TH] DAY OF MARCH 2024 / 29TH PHALGUNA, 1945 BAIL APPL. NO. 2010 OF 2024 ``` ``` CRIME NO.47/2023 OF CBCID, THRISSUR, Thrissur ``` ``` PETITIONER/S: ``` ``` REGHUNATH P MENON AGED 36 YEARS S/O. SIVASANKARA MENON, SIVAKALA,CHEMBULLY ROAD KANNIYAMPURAM,OTTAPALAM PALAKKAD DISTRICT, PIN - 679104 ``` ``` BY ADVS. UNNI SEBASTIAN KAPPEN V.A.JOHNSON (VARIKKAPPALLIL) ``` ## **`RESPONDENT/S:`** ``` STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR,HIGH COURT OF KERALA,ERNAKULAM, PIN - 682031 ``` ## **`OTHER PRESENT:`** ``` Sr PP Sri C.S Hrithwik ``` ``` THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 19.03.2024 ALONG WITH BA NOS2015, 2018 AND 2022 OF 2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 2 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE C.S.DIAS ``` ``` TUESDAY, THE 19[TH] DAY OF MARCH 2024 / 29TH PHALGUNA, 1945 BAIL APPL. NO. 2015 OF 2024 ``` ``` CRIME NO.1918/2023 OF CBCID, THRISSUR, Thrissur ``` ``` PETITIONER/S: ``` ``` REGHUNATH P MENON AGED 36 YEARS S/O. SIVASANKARA MENON, SIVAKALA, CHEMBULLY ROAD KANNIYAMPURAM, OTTAPALAM PALAKKAD DISTRICT, PIN - 679104 ``` ``` BY ADVS. UNNI SEBASTIAN KAPPEN V.A.JOHNSON (VARIKKAPPALLIL) ``` ## **`RESPONDENT/S:`** ``` STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR, HIGH COURT OF KERALA, ERNAKULAM, PIN - 682031 ``` ## **`OTHER PRESENT:`** ``` Sr PP Smt Neema T.V ``` ``` THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 19.03.2024 ALONG BA NOS 2010, 2018 AND 2022 OF 2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 3 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE C.S.DIAS ``` ``` TUESDAY, THE 19[TH] DAY OF MARCH 2024 / 29TH PHALGUNA, 1945 BAIL APPL. NO. 2018 OF 2024 ``` ``` CRIME NO.1919/2023 OF CBCID, THRISSUR, Thrissur ``` ``` PETITIONER/S: ``` ``` REGHUNATH P MENON AGED 36 YEARS S/O. SIVASANKARA MENON, SIVAKALA. CHEMBULLY ROAD KANNIYAMPURAM, OTTAPALAM PALAKKAD DISTRICT, PIN - 679104 ``` ``` BY ADVS. UNNI SEBASTIAN KAPPEN V.A.JOHNSON (VARIKKAPPALLIL) ``` ## **`RESPONDENT/S:`** ``` STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR,HIGH COURT OF KERALA,ERNAKULAM, PIN - 682031 ``` ## **`OTHER PRESENT:`** ``` Sr PP Sri C.S Hrithwik ``` ``` THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 19.03.2024 ALONG WITH BA NOS 2010, 2015 AND 2022 OF 2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 4 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM`** ## **`PRESENT`** ``` THE HONOURABLE MR.JUSTICE C.S.DIAS ``` ``` TUESDAY, THE 19[TH] DAY OF MARCH 2024 / 29TH PHALGUNA, 1945 BAIL APPL. NO. 2022 OF 2024 ``` ``` CRIME NO.1921/2023 OF CBCID, THRISSUR, Thrissur ``` ``` PETITIONER/S: ``` ``` REGHUNATH P MENON AGED 36 YEARS S/O. SIVASANKARA MENON, SIVAKALA, CHEMBULLY ROAD KANNIYAMPURAM. OTTAPALAM PALAKKAD DISTRICT, PIN - 679104 ``` ``` BY ADVS. UNNI SEBASTIAN KAPPEN V.A.JOHNSON (VARIKKAPPALLIL) ``` ## **`RESPONDENT/S:`** ``` STATE OF KERALA REPRESENTED BY PUBLIC PROSECUTOR,HIGH COURT OF KERALA,ERNAKULAM, PIN - 682031 ``` ## **`OTHER PRESENT:`** ``` Sr PP Smt Seetha S ``` ``` THIS BAIL APPLICATION HAVING COME UP FOR ADMISSION ON 19.03.2024 ALONG WITH BA NOS 2010, 2015 AND 2018 OF 2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ``` 5 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ## **C.S.DIAS,J** ## **======================** **Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 ----------------------------------Dated this the 19[th] day of March, 2024** ## **C O M M O N O R D E R** The applications are filed under Section 439 of the Code of Criminal Procedure, 1973, by the fifth accused in Crime Nos.47, 1918, 1919 and 1921 of 2023 of the CBCID, Thrissur, registered against the accused for allegedly committing the offences punishable under Secs.406 and 420 of the Indian Penal Code and Sec.3 read with Sec.21 and Sec.5 read with Sec.23 of the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act). The petitioner was originally arrested on 9.10.2023. The petitioner’s arrest was recorded in crime Nos 47, 1919 and 1921 of 2023 on 31.1.2024 and the petitioner’s 6 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 formal arrest was recorded in crime No.1918/2023 on 8.2.2024. As the petitioner is the same and the crimes have been registered in connection with the similar transactions, the applications were consolidated, jointly heard and are being disposed by the common order. 2. The crux of the prosecution allegation is that : the accused 1 to 6, the Directors of a company named, Safe and Strong Business Consultancy Private Ltd, had violated the provisions of the BUDS Act and received deposits from the defacto complainants and cheated them by not paying them interest and not returning the capital amount. Thus, the accused have committed the above offences. 3. Heard; Sri.Unni Sebastian Kappen, the learned counsel appearing for the petitioner and Smt.Neema T.V, 7 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 Smt.Seetha.S and Sri.C.S Hrithwik. the learned Public Prosecutors. 4. The learned counsel appearing for the petitioner submitted that the petitioner is totally innocent of the accusations levelled against him. He has been falsely implicated in the crime. In any given case, the petitioner has been in judicial custody since 9.10.2023, the investigation in the case is complete and final reports have been laid. By Annexure-2 order, this Court has enlarged the petitioner on bail in a similar crime. Hence the application may be allowed. 5. The learned Public Prosecutors opposed the applications. They submitted that the petitioner is an accused in 271 cases. The investigation in the case is being conducted by the Crime Branch and is still in progress. If the petitioner is let off on bail, there is every likelihood of him sabotaging the investigation. Hence, the applications may be dismissed. 8 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 6. After bestowing my anxious consideration to the facts, the rival submissions made across the Bar, the materials placed on record, especially taking into account the fact that the petitioner has been in judicial custody since 9.10.2023 and by Annexure-2 order, this Court has already enlarged the petitioner on bail in a similar offence, I am of the definite view that the petitioner’s further detention is not necessary. Hence, I am inclined to allow the bail applications. In the result, the applications are allowed, by directing the petitioner to be released on bail on him executing a bond for Rs.1,00,000/- (Rupees One lakh only) with two solvent sureties each for the like sum, to the satisfaction of the court having jurisdiction, which shall be subject to the following conditions: (i) The petitioner shall appear before the Investigating Officer on every alternate Saturday between 9 a.m. 9 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 and 11 a.m for a period of two months or till the final report is filed, whichever is earlier. He shall also appear before the Investigating Officer as and when required; (ii) The petitioner shall not directly or indirectly make any inducement, threat or procure to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the court or to any Police Officer or tamper with the evidence in any manner, whatsoever; (iii) The petitioner shall not directly or indirectly make any inducement, threat or procure to any person acquainted with the facts of the case so as to dissuade him from disclosing such facts to the court or to any Police Officer or tamper with the evidence in any manner, whatsoever; 10 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 (iv) The petitioner shall not commit any offence while he is on bail; (v) The petitioner shall surrender his passport, if any, before the court below at the time of execution of the bond, if he has not surrendered the same in any other crime. If he has no passport, he shall file an affidavit to the effect before the court below on the date of execution of the bond; (vi) The petitioner shall furnish his present address as well as his permanent address and mobile phone number to the court below and the Investigating Officer. (vii) In case of violation of any of the conditions mentioned above, the jurisdictional court shall be empowered to consider the application for cancellation of bail, if any filed, and pass orders on the same, in 11 Bail Application Nos. 2010, 2015, 2018 and 2022 of 2024 accordance with law. Applications for deletion/modification of the bail conditions shall also be filed before the court below. (viii) Needless to mention, it would be well within the powers of the Investigating Officer to investigate the matter and, if necessary, to effect recoveries on the information, if any, given by the petitioner even while the petitioner is on bail as laid down by the Hon'ble Supreme Court in **Sushila Aggarwal v. State of Delhi and another** [2020 (1) KHC 663]. sd/- sks/19.3.2024 **C.S.DIAS,JUDGE**