Additional Sessions Judge Arvind Kumar, after hearing the arguments, reserved the order on the police's plea for May 18.
Prosecutor Atul Shrivastava argued that the juvenile justice board had granted bail to the boy, who has just turned major, without any fresh bail application, which was "wrong".
"The board had first denied bail to the boy on April 19. Thereafter, he was granted bail on April 26 by the board without filing of fresh application which was wrong.
The boy's counsel, however, submitted that he was rightly granted bail and the court should also see that it was for the welfare of the youth.
The incident took place on April 4 when marketing executive Siddharth Sharma was trying to cross a road near Ludlow Castle School and the speeding Mercedes hit him.
The prosecutor also argued that as per the provisions of
the law, the custody of the juvenile has to be given to a "fit person" who can properly take care of him but the board gave the boy's custody to his mother without even analysing if she was fit.
Before that, he was refused bail by the board observing that he was a repeat offender and had blamed his parents for allowing him to drive at such an age.
The police has booked the juvenile for the alleged offence of culpable homicide not amounting to murder and he was sent to the reform home.
The police had said that the car was being driven at a speed of at least 80 km per hour and Sharma was flung several feet in the air by the impact of the crash.
The police had earlier arrested a man who claimed to be the actual driver of the Mercedes at the time of the incident but did a volte-face after he got to know the victim was dead.
The driver and the boy's father, who was also arrested earlier, were granted bail by the court.
The youth had appeared before a Delhi court to surrender and moved a bail plea which was rejected on the ground that it was a matter of JJB. He was then produced before the board.
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