High Court’s Bail Order Overturned: Supreme Court Sets Aside Compensation for Alleged Wrongful Detention

The case of Union of India Through I.O. Narcotics Control Bureau vs. Man Singh Verma revolves around a dispute over wrongful detention and the awarding of compensation in a bail matter. The Supreme Court ruled that the High Court exceeded its jurisdiction by granting compensation in a bail application under Section 439 of the Criminal Procedure Code (CrPC).

The case arose when the Narcotics Control Bureau (NCB) arrested the respondent, Man Singh Verma, on allegations of possession of heroin. However, subsequent forensic analysis revealed that the substance recovered did not contain narcotics. The High Court of Judicature at Allahabad, Lucknow Bench, directed NCB to pay Rs. 5,00,000/- as compensation to the respondent for his alleged wrongful confinement. The Union of India, through NCB, challenged this decision before the Supreme Court.

Background of the Case

The events leading to this appeal unfolded as follows:

January 6, 2023: NCB arrested Man Singh Verma and Aman Singh after seizing 1280 grams of brown powder (allegedly heroin). A criminal case under Sections 8(C), 21, and 29 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) was registered.
January 6, 2023: NCB prepared an arrest memo and sent two samples (SO1 and SD1) to the Central Revenues Control Laboratory (CRPL), New Delhi, for chemical analysis.
January 24, 2023: The Special Judge, NDPS, Barabanki, denied bail to the respondent.
January 30, 2023: CRPL reported that the sample tested negative for heroin and other narcotics.
February 2023: Instead of releasing the accused, NCB sought permission from the Special Court to send the second set of samples (SO2 and SD2) to the Central Forensic Science Laboratory (CFSL), Chandigarh, for re-testing. The court allowed the request.
April 5, 2023: CFSL, Chandigarh, confirmed that the second set of samples also tested negative.
April 6, 2023: NCB filed a closure report, and the respondent was released from custody on April 10, 2023.
May 22, 2024: The High Court, despite the respondent’s release a year earlier, adjudicated his pending bail application and ordered NCB to pay Rs. 5,00,000/- as compensation for wrongful detention.
July 16, 2024: NCB filed a modification application to waive the compensation, but the High Court rejected it.
September 9, 2024: NCB’s request for exemption from payment was again rejected.

Arguments Before the Supreme Court

Union of India’s (Appellant’s) Arguments

The Union of India, represented by Additional Solicitor General Satya Darshi Sanjay, argued:

The High Court acted beyond its jurisdiction under Section 439 CrPC by awarding compensation in a bail proceeding.
The arrest was made in good faith based on credible intelligence, and Section 69 of the NDPS Act protects officers from liability for actions taken in good faith.
Since the respondent had already been released, the High Court’s order was infructuous.

Amicus Curiae’s Arguments

The Supreme Court appointed Senior Advocate Pijush K. Roy as Amicus Curiae. He argued:

Re-testing of the second sample was impermissible under the NDPS Act and violated the principle established in Thana Singh vs. Central Bureau of Narcotics (2013).
The accused was kept in custody for an extended period despite the negative test report, violating his fundamental rights.
The principles laid down in Rudal Sah vs. State of Bihar, Nilabati Behera vs. State of Orissa, and D.K. Basu vs. State of West Bengal regarding compensation for wrongful detention should be extended to bail matters.

Supreme Court’s Observations and Ruling

The Supreme Court noted that the primary issue was whether a High Court can award compensation under Section 439 CrPC while deciding a bail application. The Court examined legal precedents, including:

Kalyan Chandra Sarkar vs. Rajesh Ranjan: Bail applications should not involve detailed examination of evidence.
Sangitaben Shaileshbhai Datanta vs. State of Gujarat: High Courts should not convert bail hearings into mini-trials.
State vs. M. Murugesan: The jurisdiction under Section 439 CrPC is limited to granting or denying bail.

The Supreme Court ruled:

“The High Court exceeded its jurisdiction in awarding compensation under Section 439 CrPC. Compensation for wrongful detention should be sought through appropriate remedies, such as a writ petition under Article 32 or Article 226 of the Constitution.”

Final Judgment

The Supreme Court’s final order:

The award of Rs. 5,00,000/- in compensation was set aside.
The respondent may pursue other legal remedies for compensation.
The appeal by the Union of India was allowed.

Key Takeaways

Bail Proceedings Have Limited Scope: Compensation cannot be awarded under Section 439 CrPC.
Remedies for Wrongful Detention: Constitutional remedies under Article 32 or 226 are the proper legal avenues.
Illegal Re-Testing in NDPS Cases: Authorities must follow the procedural guidelines established in previous judgments.
Good Faith Protection for Officers: Section 69 of the NDPS Act protects officers unless malafide intent is established.

Conclusion

The Supreme Court’s judgment reinforces the principle that bail proceedings must be confined to deciding whether an accused should be granted liberty pending trial. The decision ensures that compensation claims for wrongful detention are pursued through proper constitutional channels rather than being decided within bail hearings.

Petitioner Name: Union of India Through I.O. Narcotics Control Bureau.
Respondent Name: Man Singh Verma.
Judgment By: Justice Sanjay Karol, Justice Manmohan.
Place Of Incident: Barabanki, Uttar Pradesh.
Judgment Date: 27-02-2025.

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