Supreme Court Holds That When Chargesheet Is Filed After Investigation Finds Allegations Unsubstantiated, Accused Should Not Be Taken into Custody and Are Entitled to Bail on Appearance

Case Name: Smt. Shalini Bhateja & Anr. v. State of Uttar Pradesh & Ors.
Citation: 2026 INSC 28
Date of Judgment/Order: 06 January 2026
Bench: Justice Ahsanuddin Amanullah and Justice K. Vinod Chandran

Held: The Supreme Court held that where investigation has concluded and a chargesheet has been filed recording that the allegations against the accused are not substantiated, there is no reason to take the accused into custody, and the appropriate course is to direct their appearance before the jurisdictional court and grant of bail, while ensuring cooperation with the trial and expeditious disposal of the case.

Summary: The petitioners sought quashing of FIR No. 396 of 2025 registered at Police Station Tajganj, Agra, alleging cheating and conspiracy, contending that the dispute was purely civil in nature and that multiple criminal proceedings had been initiated on the same set of facts. The High Court declined to quash the FIR but granted liberty to seek bail. Before the Supreme Court, it emerged that three criminal proceedings had been initiated in different jurisdictions on identical allegations, two of which had either been stayed or withdrawn, and that in the present FIR the investigating officer had submitted a final report concluding that the allegations were not substantiated. The Court also took note of the appointment of an Interim Resolution Professional pursuant to insolvency proceedings and balanced the competing interests of the parties.

Decision: The Special Leave Petition was disposed of with directions that the other criminal proceedings arising from the same facts shall stand closed as not pressed, the petitioners shall appear before the jurisdictional court within one month, upon which they shall be granted bail on conditions deemed appropriate by the court, the charges shall be read over on the same day, and the trial shall proceed expeditiously with liberty to the Interim Resolution Professional to represent the complainant, with all pending applications disposed of.