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Criminal Law

Sale of Accused's Property Cannot Be Ordered as Bail Condition

 20-Apr-2026

Feroze Basha & Anr. v. State of Tamil Nadu 

"Neither Bharatiya Nagarik Suraksha Sanhita, 2023 nor Code of Criminal Procedure, 1973 would enable a Court at the stage of bail or investigation to direct the sale of immovable property belonging to accused for settlement of alleged claims." 

Justice Aravind Kumar and Justice Prasanna B. Varale 

Source: Supreme Court

Why in News?

A bench of the Supreme Court of India comprising Justice Aravind Kumar and Justice Prasanna B. Varale, in the case of Feroze Basha & Anr. v. State of Tamil Nadu (2026), held that a court cannot impose a condition directing the sale of an accused's immovable property as part of a bail order. Setting aside a Madras High Court order that had imposed such a condition, the court reiterated that bail proceedings cannot be converted into recovery proceedings, and that bail conditions must bear a direct nexus with the object of granting bail.

What was the Background of Feroze Basha & Anr. v. State of Tamil Nadu (2026) Case? 

  • A complaint was registered on June 4, 2025, alleging cheating and misappropriation of funds, leading to the registration of an FIR against the appellant-accused and another person. 
  • They were booked under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant), and 420 (cheating) read with Section 34 (common intention) of the IPC. 
  • The accused were arrested and remained in custody for 83 days during investigation. 
  • The Sessions Court rejected their bail application. 
  • The Madras High Court granted bail but imposed a condition directing the Judicial Magistrate to sell the accused's immovable properties and distribute the proceeds among the complainant and similarly placed victims. 
  • The accused approached the Supreme Court challenging this condition.

What were the Court's Observations? 

The court made the following key observations: 

Sale of Property as Bail Condition Impermissible: 

  • Neither the BNSS, 2023 nor the CrPC, 1973 empowers a court, at the stage of bail or investigation, to direct the sale of immovable property belonging to an accused for settlement of alleged claims. 
  • Ordering the sale of property as a bail condition amounts to granting a final civil relief, which directly affects property rights and cannot be sustained. 

Bail Conditions Must Have Nexus with Object of Bail: 

  • It is impermissible for a court to impose bail conditions that have no nexus with the object of granting bail. 
  • Bail conditions must not be punitive or determinative in nature, and cannot deprive an accused of the right to use their own property. 

Bail Proceedings Cannot Become Recovery Proceedings: 

  • The High Court, in imposing the impugned condition, effectively went beyond its bail jurisdiction to adjudicate a civil dispute between the parties — the very property in question being the subject matter of a pending civil suit. 
  • Relying on Mahesh Chandra v. State of U.P. & Others (2006), the court reiterated that the jurisdiction of a court while granting bail does not extend to deciding civil rights or disputes, nor to imposing conditions that virtually grant final civil relief sought by the complainant. 

Order Set Aside: 

  • The appeal was allowed and the impugned condition directing the sale of the appellants' properties was set aside as wholly unwarranted.

What is Bail & its Types? 

About Bail: 

  • Bail, a legal provision within the Criminal Procedure Code, 1973 (CrPC) and Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) facilitates release from prison pending trial or appeal upon depositing security.  
  • Bailable offences guarantee the right to bail, as per Section 436 of the CrPC, while non-bailable offences grant discretion to courts or designated police officers, as outlined in Section 437.  
  • Justice V R Krishna Iyer in the case of State of Rajasthan v. Balchand (1977) held that the basic rule is bail, not jail. It referred to a concept which is ‘Bail is a Right and Jail is an exception”.

Types of Bail: 

  • Regular Bail: It is a direction given by the Court (any Court within the country) to release a person who is already under arrest and kept in police custody.  
  • Interim Bail: Bail granted for a temporary and short period by the Court till the application seeking Anticipatory Bail or Regular Bail is pending before a Court.   
  • Anticipatory Bail: It is a legal provision that allows an accused person to apply for bail before being arrested. In India, pre-arrest bail is granted under section 438 of the CrPC It is issued only by the Sessions Court and High Court. 
  • What are the Provisions concerning Bail under Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS)?  
  • Chapter 35 of BNSS provides for provisions as to Bail and Bonds. 

Section 478 

In what cases bail to be taken 

Section 479 

Maximum period for which undertrial detained 

Section 480 

When bail may be taken in case of non-bailable offence 

Section 481 

Bail to require Accused to appear before next Appellate Court 

Section 482 

Direction for grant of bail to person apprehending arrest (Anticipatory Arrest) 

Section 483 

Special Powers of High Court and Court of Session regarding Bail 

Section 484 

Amount of Bail and reduction 

Section 485 

Bond of accused and sureties 

Section 486 

Declaration by sureties 

Section 487 

Discharge from custody 

Section 488 

Power to order sufficient bail when that first taken is insufficient  

Section 489 

Discharge of sureties 

Sectio 490 

Deposit instead of recognizance 

Section 491 

Procedure when bond has been forfeited  

Section 492 

Cancellation of bond and bail bond 

 

What are the Bail Conditions in India? 

  • Bond: A written promise by the accused to appear for trial and follow bail conditions. It usually requires a cash deposit (amount based on crime and economic condition). 
  • Cash deposit can be forfeited if bail conditions are broken. It is refundable at the end of the trial, regardless of the outcome. 
  • If the accused cannot pay immediately, the court may allow release on a Personal Recognisance (PR) Bond, with time given to arrange the cash. 
  • Bail Bond: A bail bond is a guarantee from a third party (family, friend, or employer) ensuring the accused complies with bail conditions and appears for trial.  
  • The surety may deposit a sum forfeitable if the accused absconds. Courts verify the surety’s documents, finances, and residence, with some requiring a solvency certificate.

Civil Law

Lok Adalat Jurisdiction: No Pecuniary Limits, Only Territorial Boundaries Apply

 20-Apr-2026

Prasanth P. Kumar and Anr. v. State of Kerala and Ors. 

"Insofar as Section 19(5) has not spoken about any 'pecuniary jurisdiction' and has only spoken about 'territorial jurisdiction,' the petitioners are not entitled to succeed." 

Justice Harisankar V. Menon 

Source: Kerala High Court

Why in News? 

A bench of the Kerala High Court comprising Justice Harisankar V. Menon, in the case of Prasanth P. Kumar and Anr. v. State of Kerala and Ors. (2026), held that a Lok Adalat can settle disputes of any pecuniary value falling within its territorial jurisdiction, since Section 19(5) of the Legal Services Authority Act, 1987 does not impose any pecuniary restriction on Lok Adalats.  

  • The Court dismissed a writ petition challenging an award passed by the Adoor Taluk Legal Services Committee on the grounds of fraud and lack of jurisdiction.

What was the Background of Prasanth P. Kumar and Anr. v. State of Kerala and Ors. (2026) Case? 

  • The petitioners and the party respondent had entered into an agreement for sale, pursuant to which the respondent paid an advance amount of more than ₹98 lakhs. 
  • The sale did not materialise, and the petitioners failed to refund the advance amount, compelling the respondent to institute a complaint before the Taluk Legal Services Authority. 
  • The petitioners were directed to appear via telephone and did so along with a lawyer. Thereafter, the impugned award was passed, recording the petitioners' undertaking to refund the advance amount, and post-dated cheques were handed over to the respondent. 
  • The cheques were subsequently dishonoured, and the respondent filed an execution petition to enforce the award. 
  • The petitioners objected to the execution petition and approached the High Court challenging the award on grounds of fraud and lack of jurisdiction.

What were the Court's Observations? 

On Allegation of Fraud: 

  • The Court rejected the allegation of fraud, noting that the petitioners themselves admitted there was no coercion for their appearance. 
  • The petitioners had appeared before the Lok Adalat along with a lawyer, which negated any claim of undue pressure or misrepresentation. 
  • Mere direction to appear at short notice, and participation in the compromise thereafter, cannot constitute fraud. 

On Pecuniary Jurisdiction of Lok Adalats: 

  • The petitioners argued that the Adoor Taluk Legal Services Committee lacked jurisdiction since Adoor Taluk did not have a Sub-Court, and therefore no suit of the relevant pecuniary value could have been instituted there. 
  • The Court rejected this contention, holding that Section 19(5) of the Legal Services Authority Act, 1987 prescribes only territorial jurisdiction for Lok Adalats and makes no reference to pecuniary jurisdiction. 
  • Accordingly, a Lok Adalat can settle disputes of any pecuniary value, provided the matter falls within its territorial limits. 
  • The Court also referred to similar positions of law laid down by the Andhra Pradesh and Kerala High Courts in earlier decisions.

What are Lok Adalats? 

Introduction First Lok Adalat 

    • The term Lok Adalat means People’s Court.  
    • It is based on Gandhian principles. 
    • As per the Supreme Court it is an old form of adjudicating system prevailed in ancient India. 
    • It is one of the components of the Alternative Dispute Resolution (ADR) system.  
    • It delivers informal, cheap and expeditious justice to the common people.
    • The first Lok Adalat camp was organized in Gujarat in 1982 as a voluntary and conciliatory agency without any statutory backing. 

Statutory Recognition 

    • It was given statutory status under the Legal Services Authorities Act, 1987.  
    • The Act makes the provisions relating to the organization and functioning of the Lok Adalats. 

Organization 

    • The National Legal Services Authority (NALSA) along with other Legal Services Institutions deal with the organization of Lok Adalats. 
    • NALSA was constituted under the Legal Services Authorities Act, 1987 which came into force on 9th November 1995.

Composition 

    • Generally, a Lok Adalat consists of a judicial officer as the chairman and a lawyer (advocate) and a social worker as members.

Jurisdiction 

    • A Lok Adalat shall have jurisdiction to determine and to arrive at a compromise or settlement between the parties to a dispute in respect of:
    • Any case pending before any court. 
    • Any matter which is falling within the jurisdiction of any court and is not brought before such court. 
    • Any case pending before the court can be referred to the Lok Adalat for settlement if the parties agree to settle the dispute in the Lok Adalat. 

Proceedings 

    • All proceedings before a Lok Adalat shall be deemed to be judicial proceedings within the meaning of the Bharatiya Nyaya Sanhita, 2023 (BNS) and every Lok Adalat shall be deemed to be a Civil Court for the purpose of the Code of Civil Procedure, 1908 (CPC).

 

Awards 

    • The award by the Lok Adalat is binding on the parties and it has the status of a decree of a civil court, and it is non-appealable, which does not cause the delay in the settlement of disputes finally.

 

Benefits

    • There is no court fee and if the court fee is already paid the amount will be refunded if the dispute is settled at Lok Adalat. 
    • There is procedural flexibility and speedy trial of the disputes.