HC Denies Bail Citing Petitioner’s Failure to Meet Twin Conditions u/s 212(6) of Companies Act & Risk of Evidence Tampering

Case Details: Rahul Dinesh Surana v. Union of India - [2025] 171 taxmann.com 160 (HC-Madras)

Judiciary and Counsel Details

• A.D. Jagadish Chandira, J.
• P.V. Balasubramaniam, Sr. Adv., M. Mohammed Riyaz, Vishnu Vardhan J, for the Respondent.
• B. Mohan, for the Respondent.

Facts of the Case

In the instant case, the S Group of Companies had borrowed money from various banks and later, they went on liquidation under the IBC having been declared as NPA. The petitioner was appointed as Vice President (Projects) in one of the group company to head certain projects.

An Investigation revealed that the petitioner, in connivance with his father and other accused, had played a key role in various activities relating to the siphoning of public money obtained as loans from various banks. The petitioner was implicated in a criminal complaint along with the other accused.

Thereafter, the petitioner filed an instant petition seeking bail. It was noted that the petitioner was facing serious economic offences and fraud of a great magnitude.

Further, the communication addressed by the petitioner to Banks would clinchingly establish the petitioner’s role and control over witnesses, and thus, the petitioner had not complied with the twin conditions stipulated under Section 212(6) of the Companies Act, 2013.

Further, if bail was granted to the petitioner, there was every possibility of evidence being tampered with and witnesses being influenced by him.

High Court Held

The High Court held that the trial in the instant case, being one for offences under the Companies Act, was not dependent on proving offences under any other Act, and thereby, the concept of long incarceration alone could not be a ground for grant of bail. Therefore, the instant petition seeking bail could not be entertained and was to be dismissed.

List of Cases Reviewed

• V. Senthil Balaji v. Deputy Director, Directorate of Enforcement (2024 INSC 739) [Para 12] distinguished.

List of Cases Referred to

• V.Senthil Balaji v. The Deputy Director Directorate of Enforcement 2024 INSC 739 (para 3).