Cancellation of Bail — Violation of specific conditions — Governing principle (Para 40, 17, 18) Bail granted subject to specific conditions can be cancelled where such conditions are not complied with in letter and spirit. Post-bail conduct of the accused, including failure to adhere to imposed obligations, is a valid ground for cancellation of bail.

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1. Cancellation of Bail — Violation of specific conditions — Governing principle
   (Para 40, 17, 18)
   Bail granted subject to specific conditions can be cancelled where such conditions are not complied with in letter and spirit. Post-bail conduct of the accused, including failure to adhere to imposed obligations, is a valid ground for cancellation of bail.

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2. Conditional Bail — Settlement obligation — Non-compliance as ground for cancellation
   (Para 3, 14, 16, 17)
   Where bail is granted on the express condition that the accused shall make genuine efforts to settle claims of victims/allottees, failure to make bona fide efforts or deliberate non-compliance constitutes a breach warranting cancellation of bail.

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3. Bonafide compliance — Requirement — Mere assertion insufficient
   (Para 13, 14, 16)
   The accused must demonstrate genuine, effective, and complete compliance with settlement conditions. Mere claims of partial settlements or efforts, without actual resolution of claims, are insufficient to satisfy bail conditions.

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4. Abuse of liberty of bail — Conduct of accused
   (Para 15, 16)
   Where the accused, after grant of bail, engages in conduct such as deflecting responsibility, delaying settlement, or failing to cooperate with authorities, such conduct amounts to abuse of the liberty granted by the Court.

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5. Deposit condition — Compliance must be lawful and bonafide
   (Para 46–52)
   Where deposit of money is a pre-condition for grant of bail, such deposit must be made in compliance with law and bonafide manner. Use of company funds in violation of statutory provisions to secure personal bail amounts to breach of the condition.

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6. Cognizance of surrounding circumstances — Wider factual matrix relevant
   (Para 29)
   While considering cancellation of bail, the Court can examine the broader factual context, including insolvency proceedings, financial conduct, and role of statutory authorities (such as IRP), where such facts are intrinsically linked to the alleged breach.

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7. Protection of victims/allottees — Paramount consideration
   (Para 20, 21)
   In cases involving large number of victims (such as homebuyers/allottees), the Court must prioritize their interests and ensure effective resolution of their claims while considering continuation or cancellation of bail.

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8. Forfeiture of deposit — Consequence of breach
   (Para 18)
   Upon breach of bail conditions, the Court is empowered to order forfeiture (wholly or partially) of amounts deposited as a condition for grant of bail.

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Core Ratio (One-Line Proposition)

Where bail is granted subject to conditions requiring bona fide settlement and lawful compliance, failure to fulfill such conditions—coupled with improper conduct and misuse of funds—constitutes abuse of bail and justifies its cancellation along with consequential forfeiture.