Delhi HC Cancels Accused’s Anticipatory Bail After He Repeatedly Flouted Court Undertakings to Pay ₹2 Lakh Settlement

In brief

The question

Whether respondent no. 2’s repeated failure to honour payment undertakings, where anticipatory bail had been granted on the basis of settlement, justified cancellation of bail.

The court held

The Court allowed the petition and cancelled respondent no. 2’s anticipatory bail.

It also directed

The Investigating Officer was directed to proceed in accordance with law; respondent no. 2 remained at liberty to seek fresh or other appropriate remedies, to be considered in accordance with law.

01Facts

The petitioner, complainant in FIR No. 0184/2024 registered under Sections 420/34 IPC, sought cancellation of respondent no. 2’s anticipatory bail, granted on 7 August 2024 after the parties represented that the dispute had been settled for ₹2,00,000.

pp. 1, paras 1–2

The settlement agreement required the final instalment by 22 January 2025. Thereafter, respondent no. 2 repeatedly obtained time and undertook to pay, including an undertaking on 13 October 2026 to clear the remaining amount by 20 October 2026, but made no payment.

pp. 1–2, paras 3–8

Respondent no. 2 was absent when the cancellation petition was considered.

p. 3, para 14

02Issues

i.Whether respondent no. 2’s repeated failure to honour payment undertakings, where anticipatory bail had been granted on the basis of settlement, justified cancellation of bail.

pp. 2–3, paras 8–13

ii.Whether non-payment of the settlement amount, without more, was sufficient to cancel anticipatory bail.

p. 3, para 13

03Law Applied

Bail cancellation requires cogent and compelling circumstances; mere failure to pay an amount agreed under a settlement does not, by itself, justify cancellation.

p. 3, para 13

The Court also relied on the principle articulated in Dheeraj Tyagi v. State of NCT of Delhi & Ors., 2026:DHC:8223, that an accused who obtains liberty by holding out a settlement and then repeatedly breaches undertakings to the Court abuses the process of the Court and the liberty granted.

pp. 2–3, paras 11–12

The FIR alleged offences under Sections 420/34 IPC, but the judgment identifies no statutory provision as the basis for cancelling bail.

p. 1, para 1

Provisions in the judgment · 2 · Linked ones open on LawLens

Indian Penal Code, 1860 Section 420 Section 34

04Reasoning

The Court found that anticipatory bail had not been granted on merits but on the footing that respondent no. 2 had settled the dispute and would pay the agreed amount; that foundation no longer existed.

p. 3, para 10

The Court distinguished this case from one involving mere inability to pay: respondent no. 2 had repeatedly assured the Court that payment would be made, obtained adjournments on that basis, and then failed to comply with the latest undertaking.

pp. 2–3, paras 8, 10

In those circumstances, the Court treated the conduct as an abuse of the Court’s protection and found cogent and overwhelming grounds for cancellation, while expressly recognising that non-payment alone would not suffice.

pp. 2–3, paras 9, 12–13

05Holding

The Court allowed the petition and cancelled respondent no. 2’s anticipatory bail.

p. 4, para 15

The Investigating Officer was directed to proceed in accordance with law; respondent no. 2 remained at liberty to seek fresh or other appropriate remedies, to be considered in accordance with law.

pp. 4, paras 16–18

LawLens.Delhi High Court

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