Madras High Court

Failure to furnish grounds of arrest violates constitutional safeguards, entitling the accused to bail.

SUN PHARMA LABORATORIES LIMITED, vs The State Rep. by its Station House Officer,

Madras High CourtJUDGMENT: July 20, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners (Sun Pharma Laboratories Ltd.) sought the cancellation of bail and anticipatory bail granted to the respondents (A1 to A3) by the Principal Sessions Judge, Puducherry, on 02.12.2025.

Source reference: para. 2

The respondents were accused in Cr.No.27 of 2025 (later transferred to the CBI) for counterfeiting life-saving medicines (Rosuvas and Montek LC) in unlicensed premises.

Source reference: para. 2

The petitioners argued that the gravity of the economic and public health offense, along with supervening circumstances—specifically an attempt to bribe an investigating officer and violation of bail conditions—warranted cancellation.

Source reference: para. 3-4

A key procedural fact was that the Trial Court originally granted bail because the prosecution failed to establish that the "grounds of arrest" were legally furnished to the accused.

Source reference: para. 15
02

Issues

1. Whether the order granting bail was perverse or illegal due to the gravity of the offenses involving public health and economic safety.

Source reference: para. 13

2. Whether supervening circumstances, such as subsequent criminal conduct (bribery) or non-compliance with conditions, justify the cancellation of bail by the High Court.

Source reference: para. 17

3. Whether the violation of constitutional safeguards regarding the "grounds of arrest" under Article 21 and the Mihir Rajesh Shah precedent entitles the accused to bail regardless of offense gravity.

Source reference: para. 15-16
03

Law Applied

The court primarily applied the principles governing the cancellation of bail as established in Dolat Ram v. State of Haryana, which requires "cogent and overwhelming circumstances" for cancellation.

Source reference: para. 10

It followed the illustrative criteria for perversity and subsequent conduct set out in Deepak Yadav v. State of Uttar Pradesh and Vipin Kumar Dhir v. State of Punjab.

Source reference: para. 10, 11

the court relied on the distinction between the "yardstick for cancellation" versus an "appeal against a bail order" as defined in X v. State of Telangana.

Source reference: para. 12

Furthermore, it applied the constitutional mandate for furnishing "grounds of arrest" as clarified in Mihir Rajesh Shah v. State of Maharashtra and the general principle that "bail is the rule, jail is the exception".

Source reference: para. 14-15, 18
04

Reasoning

The court found that the Principal Sessions Judge’s order was not perverse but was grounded in a significant legal infirmity in the arrest process.

Source reference: para. 14

Specifically, the Trial Court noted that no material was produced to prove that the "grounds of arrest" were furnished to the accused, which constitutes a violation of Article 21 of the Constitution.

Source reference: para. 15

The High Court reasoned that once constitutional safeguards are breached, the accused is entitled to bail as a matter of right.

Source reference: para. 16

Regarding the petitioners' claims of gravity and organized crime, the court noted that the Sessions Judge had already considered the nature of the allegations and found that most sections did not necessitate custodial interrogation.

Source reference: para. 16

As for the "supervening circumstances" (bribery and tampering), the court held these were not relevant to the current petitions, which were strictly focused on the legality of the original bail order; such claims must be addressed through separate applications before the competent jurisdictional court.

Source reference: para. 17, 19
05

Holding

The High Court dismissed the petitions, holding that there was no infirmity in the Trial Court’s order granting bail.

The court affirmed that the violation of the constitutional requirement to furnish grounds of arrest outweighs the gravity of the offense at the bail stage.

Source reference: para. 16

The petitions were dismissed, but liberty was granted to the petitioners to approach the competent court regarding any subsequent supervening circumstances.

Source reference: para. 19-20
Madras High Court

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SUN PHARMA LABORATORIES LIMITED,vsThe State Rep. by its Station House Officer,

Madras High Court · July 20, 2026

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