Karan Singh vs. The State Of Madhya Pradesh

Held

The Court allowed the bail applications of the applicants, Karan Singh and Sachin. The Court noted the submissions of the applicants regarding the quashing of the FIR of a co-accused by the Division Bench of the High Court, which held that the Goods and Services Tax Act, 2017 (GST Act) is a special legislation and that prosecution under the Indian Penal Code (IPC) should not bypass the procedures and sanction requirements stipulated in the GST Act, specifically Section 132(6). The Court also considered the prolonged period of custody of the applicants and the fact that charges were yet to be framed. While acknowledging the State's submission that the Division Bench's order is under challenge before the Supreme Court and that additional cases are registered against the applicants, the Court, without commenting on the merits of the case, found sufficient grounds to grant bail. The applicants were directed to be released on bail upon furnishing a personal bond of Rs. 25,000/- with one solvent surety each, subject to conditions under Section 437(3) of the Cr.P.C.

Facts

These are bail applications filed by Karan Singh and Sachin, who are accused in Crime No. 62/2022, registered at Police Station STF Bhopal for offenses under Sections 420, 467, 468, 471, 120-B, and 201 of the IPC. The applicants have been in custody since September 22, 2023, and November 24, 2024, respectively. Karan Singh's previous bail applications were dismissed. The applicants' counsel highlighted that a co-accused, Deepak Singhal, had his FIR quashed by a Division Bench of the High Court in Writ Petition No. 21641/2024, on grounds that the GST Act is a special legislation and prosecution under IPC provisions should not bypass GST procedures and sanction requirements. The applicants argue their case is identical to Singhal's. The State opposed bail, noting that the Division Bench's order quashing the FIR is under challenge before the Supreme Court and that additional cases are registered against Karan Singh.

Key Issues

1. Whether the applicants are entitled to bail in light of the Division Bench quashing the FIR of a similarly situated co-accused, Deepak Singhal, on the grounds that the Goods and Services Tax Act, 2017 (GST Act) is a special legislation and prosecution under the Indian Penal Code (IPC) should not bypass GST procedures and sanction requirements under Section 132(6) of the GST Act? Petitioner's arguments: The applicants' case is identical to that of Deepak Singhal, whose FIR was quashed by the Division Bench. The Division Bench held that the GST Act, being a special legislation, cannot be bypassed by invoking IPC provisions without following the prescribed procedure and obtaining sanction under Section 132(6) of the GST Act. Given this precedent and the applicants' prolonged custody, bail should be granted. Revenue's arguments: The order of the Division Bench quashing the FIR is under challenge before the Supreme Court in SLP No. 8675/2025, and notices have been issued. Furthermore, additional cases have been registered against both applicants, indicating a pattern of alleged offenses. Therefore, bail should not be granted.