A probe into the affairs of the Adarsh Group of Companies and LLPs by the SFIO led to the arrest of the two respondents. On April 5, 2019, both were remanded to 14 days judicial custody. The detention was extended till May 16, 2019 and thereafter till May 30.
Meanwhile, a criminal complaint under Section 439(2) read with Section 212(15) of the Companies Act, 2013, was filed before the Special Court, Gurugram, against both on May 18.
On May 20, when the two moved a lower court for statutory bail under Section 167 CrPC, applications were dismissed by the Gurugram Sessions Judge, on the ground that the complaint under Section 439(2) of the Companies Act was filed before the expiry of the 60-day period prescribed in proviso (a) to Section 167(2) of the CrPC.
The High Court on appeal granted the respondents statutory bail on the ground that the trial court had not taken cognisance of the complaint before the expiry of the 60-day period, which entitled the respondents to statutory bail, as a matter of an indefeasible right.
The SFIO then appealed to the top court.