In Brief
The Supreme Court clarified the law on statutory bail under Section 167(2) of the Code of Criminal Procedure. The Serious Fraud Investigation Office challenged the High Court's order granting bail to two company directors (Rahul Modi and another) on the grounds that cognizance had not been taken within 60 days. The Court held that statutory bail is available only when investigation is not completed within the prescribed period. Filing of a charge-sheet within the period is sufficient—cognizance timing is immaterial. Once a charge-sheet is filed, the accused's right to statutory bail ceases; they can only seek regular bail on merits. The accused remains in the Magistrate's custody until cognizance is taken by the trial court. The High Court's order was set aside and the appeals allowed.
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