Supreme Court: No Bail for Offences Under Section 447 of Companies Act Without Meeting Twin Conditions

The Supreme Court held that bail, including anticipatory bail, for offences under Section 447 of the Companies Act, 2013, cannot be granted unless the twin conditions under Section 212(6) are satisfied.

These conditions require that the Public Prosecutor should be given an opportunity to oppose the bail, and the court must be convinced that the accused is likely innocent and will not commit further offences while on bail. 

The case involved a ₹1700 crore fraud by Adarsh Group companies through illegal loans. The accused had absconded and were declared proclaimed offenders. 

The Court cancelled the Punjab and Haryana High Court’s bail order for ignoring these mandatory provisions.