The appeal arose from an interim order of the Karnataka High Court granting interim bail to respondent No. 1, Ritu Nitin Minocha, who was accused under the Central Goods and Services Tax Act, 2017 of being involved in large-scale tax evasion allegedly exceeding ₹660 crores. The prosecution alleged that the respondent and her husband jointly operated multiple companies to defraud the revenue. The appellant contended that the High Court had granted bail in undue haste, within a day of the writ petition being filed, without disclosing that a bail application was already pending before the Trial Court.

The respondent argued that she was a woman and that the alleged tax liability pertaining to her companies was below ₹5 crores, which under the CGST Act would make the offences non-cognizable. It was further contended that the clubbing of liabilities of her husband’s companies was unjustified.

The Supreme Court allowed the appeal and set aside the interim bail order granted by the Karnataka High Court. The Court held that the manner and timeframe in which the High Court entertained and disposed of the writ petition raised serious procedural concerns, as the Trial Court was already seized of the matter. It directed respondent No. 1 to surrender before the Trial Court within one week and ordered that the pending proceedings before the High Court be reassigned to another bench by the Chief Justice for consideration on merits.

The Court clarified that all questions of law and fact remained open to be argued before the High Court and that the interim protection granted earlier would cease upon surrender. The Supreme Court’s order was directed to be communicated immediately to the Registrar General of the Karnataka High Court for compliance.