This appeal arose from a challenge by the Senior Intelligence Officer (DGST Intelligence) against the Karnataka High Court’s order granting bail to the respondent, Mohammed Kamran, who was accused of masterminding a massive fraudulent input tax credit (ITC) scam and tax evasion exceeding Rs. 43 crores under the CGST Act. The Supreme Court expressed grave concern over the respondent’s conduct of forum shopping, pursuing parallel remedies (including a simultaneous writ petition challenging arrest where ad-interim release was refused), and concealing material facts to obtain an expedited bail hearing during the High Court’s winter vacation. While the Court declined to strip the respondent of his liberty immediately given the nature of the offenses, it set aside the final disposal of the bail petition, revived the matter before the High Court for a fresh decision on merits, and permitted the respondent to remain on interim bail in the interim.
- Factual Background & Allegations:
- The respondent, proprietor of M/s MK Traders, was accused of issuing fake invoices without actual supply of goods, falsifying financial statements, and evading CGST amounting to Rs. 43,08,22,936/-.
- Following his arrest on September 16, 2025, successive bail applications before the trial court and sessions court were rejected.
- Forum Shopping and Suppression of Material Facts (Uberrima Fides):
- While his bail petition was pending before the High Court, the respondent filed a parallel writ petition under Article 226 challenging his arrest and seeking release, expressly pleading that the remedy under Section 483 of the BNSS was not efficacious.
- The High Court refused ad-interim relief in that writ petition on December 22, 2025. Crucially, the respondent concealed this rejection when he moved a memo for an urgent vacation listing of his bail petition, which was subsequently granted on December 26, 2025.
- The Supreme Court severely deprecated this conduct, noting that pursuing parallel remedies while keeping judicial authorities in the dark amounts to an abuse of the process of law and a lack of uberrima fides (utmost good faith), which is fundamental to equitable bail jurisprudence.
- Guidelines on Vacation Listing of Matters:
- Addressing procedural irregularities regarding urgent vacation listings, the Supreme Court laid down that when a court directs listing “two weeks hence” and that period expires during a court vacation, the registry should ordinarily exclude the vacation period when computing the time, unless the bench specifically made the matter returnable on a specific vacation date or before a Vacation Bench. This ensures litigants are not prejudiced by court breaks.
- Final Relief and Directions:
- The Supreme Court set aside the High Court’s order disposing of the criminal petition, reviving the bail application on the file of the High Court for a fresh, uninfluenced consideration on its merits.
- The appellant was granted permission to file a detailed counter-affidavit within two weeks, and the High Court was requested to re-decide the matter by the end of the year. The respondent was permitted to remain on interim bail under the previous terms until the Single Bench passes fresh orders.




