The ruling, made by a district judge at Salford Magistrates' Court and backed by the High Court, means an end to the practice of releasing people on bail and calling them back for further questioning later - a common practice in most major inquiries.
Police forces can no longer put anyone out on bail for more than 96 hours without either being in a position to charge or release them.
After the four days is up, officers can no longer question suspects and can only rearrest them if they have new evidence, the ruling says.
Police chiefs have been left baffled by the "bizarre" ruling and both the Association of Chief Police Officers (Acpo) and the Crown Prosecution Service (CPS) are currently considering the ramifications for forces across England and Wales.
Home Secretary Theresa May said: "I think this is a matter of great concern.
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