Courts Cannot Grant Compensation for Wrongful Confinement in Bail Applications Under S.439 CrPC: Supreme Court

Courts Cannot Grant Compensation for Wrongful Confinement in Bail Applications Under S.439 CrPC: Supreme Court

The Supreme Court has ruled that courts do not have the authority to grant compensation to an accused for wrongful confinement while exercising bail jurisdiction under Section 439 of the Code of Criminal Procedure (CrPC).

"The jurisdiction conferred under Section 439 CrPC is strictly limited to granting or refusing bail during trial," the Court stated.

A bench comprising Justice Sanjay Karol and Justice Manmohan set aside an order of the Allahabad High Court, which had directed the Narcotics Control Bureau (NCB) to pay ₹5 lakh as compensation to an accused for alleged wrongful confinement in a drug case.

Background of the Case

In January 2023, the NCB seized approximately 1,280 grams of brown powder from the accused. However, forensic tests did not detect any narcotic substance in the samples. Based on these results, the NCB filed a closure report in April 2023 and released the accused.

Despite the accused’s release, the Allahabad High Court continued adjudicating his pending bail application to determine whether he was entitled to compensation. In May 2024, the High Court directed the Director of NCB, New Delhi, to pay ₹5 lakh for alleged wrongful confinement.

Supreme Court’s Observations

The Supreme Court, allowing NCB’s appeal, held that the High Court had exceeded its jurisdiction by ordering compensation.

"Time and again, courts overstepping their jurisdiction have been frowned upon. This case is another such example," the Supreme Court remarked.

Once the closure report was filed and the accused was released, the bail application became infructuous. Thus, the High Court should have simply disposed of it. The Court also noted that:

  • There was no legal basis for the High Court to examine wrongful confinement within the limited scope of a bail application.
  • The issue of compensation should have been pursued through proper legal remedies, such as a writ petition under Article 32 or Article 226 of the Constitution.
  • Past precedents, such as Rudal Sah v. State of Bihar, Nilabati Behera v. State of Orissa, and D.K. Basu v. State of West Bengal, were decided in writ petitions, not bail applications.

The Court also accepted the Union of India’s submission that granting ₹5 lakh compensation was beyond the authority of law under Section 439 CrPC.

Clarification on Remedies

While setting aside the High Court’s order, the Supreme Court clarified that its judgment does not prevent the accused from seeking compensation through appropriate legal channels.

Case: Union of India other. I.O Narcotics Control Bureau vs. Man Singh Verma

Author : Neha Mishra

Posted on : 01,Mar,2025

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