Allowed

Shri Mahesh Nayak v. A.N. Shailaja

Karnataka HC15 Nov 2023CRL.P/7036/2023

Case brief

AI extract

What is this about?

In a criminal petition under Section 482 CrPC, the High Court of Karnataka quashed criminal proceedings against a compliance officer where the petition argued vicarious liability could not attach without the manufacturer company being arraigned under Section 10 of the Essential Commodities Act, calling further prosecution an abuse of process.

What did the court decide?

Criminal proceedings in CC No.57/2019 were quashed.

Shri Mahesh Nayak Vs A.N. Shailaja — Cheque Dishonour | Karnataka HC (2023)

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1 - NC: 2023:KHC:40738 CRL.P No. 7036 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF NOVEMBER, 2023

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR

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CRIMINAL PETITION NO. 7036 OF 2023

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BETWEEN:

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SHRI MAHESH NAYAK AGED ABOUT 45 YEARS COMPLIANCE OFFICER, ZUARI AGRO CHEMICALS LTD JAI KISAN BHAVAN, ZUARI NAGAR, GOA-403 726.

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…PETITIONER

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(BY SRI. PEERJADE MOHAMAD, ADVOCATE)

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AND:

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A.N. SHAILAJA, AGE MAJOR, FERTILIZER INSPECTOR ASSISTANT DIRECTOR OF AGRICULTURE ALUR TALUK AALUR, DISTRICT HASSAN REP. BY SPP HIGH COURT OF KARNATAKA PRINCIPAL BENCH BENGALURU-560 001.

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Digitally signed by B K MAHENDRAKUMAR Location: High Court of Karnataka

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(BY SRI. VENKATASATYANARAYANA A, HCGP)

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…RESPONDENT

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THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF THE CODE OF CRIMINAL PROCEDURE, 1973 PRAYING TO QUASHED THE COMPLIANT DATED 01.09.2018 AND CHARGE SHEET SUBMITTED IN C.C.NO.57/2019 BEFORE THE CIVIL JUDGE AND JMFC COURT ALUR DISTRICT HASSAN AGAINST THE PETITIONER/ACCUSED NO.3 OF THE OFFENCE P/U/S. 19(1) OF FERTILIZER CONTROL ACT R/W SECTION 3 AND 7 OF THE ESSENTIAL COMMODITIES ACT.

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THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, THE COURT MADE THE FOLLOWING:

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NC: 2023:KHC:40738 CRL.P No. 7036 of 2023

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ORDER

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The petitioner - accused No.3 has been charge sheeted for the offences punishable under Section 13 of the Rule 1985 Fertilizers Controlling Act and Section 19(1)A and B of the Essential Commodities Act, 1955.

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The respondent carried out inspection of the business of accused No.1 - who is proprietor of Kanagal Agro Center, Byrapura, and a dealer, and collected samples of fertilizer manufactured by Zuari Agro Chemicals, situated at Zuarinagar. The respondent sent the samples for testing to the Fertilizer Analyst. The report was submitted stating that the samples of subject fertilizer is of substandard quality. The sample was again sent for re-analysis, and the same was declared that the sample of the subject fertilizer was not as per the prescribed standard. The respondent filed a private complaint under Section 200 of Cr.PC for contravening of Sections 13 and 19(1)(A) and (B) of the Fertilizers Control Order, 1985. The accused No.2 is the supplier and the accused No.3 is the Compliance Officer. The learned Magistrate after perusing the complaint took the cognizance of the said offence. Taking exception to the same, this petition is filed.

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The learned counsel for the petitioner submits that the manufacturer of the subject fertilizer having not been arraigned as an accused, the petitioner cannot be held vicarious guilty along with the manufacturer as specified under Section 10 of the Essential Commodities Act.

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NC: 2023:KHC:40738 CRL.P No. 7036 of 2023

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The learned High Court Government Pleader for the respondent submits that the complaint discloses the commission of the aforesaid offences, and the learned Magistrate has rightly taken the cognizance and the same does not warrant any interference.

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Considered the submissions of the learned counsel for the parties.

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Section 2 of the Control Order, 1985 specifies that the Act means the Essential Commodities Act, 1955 and the provisions of the Act are made applicable, and the fertilizer is declared as an essential commodity in the Schedule-I to the Control Order, 1985.

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Section 10 of the Essential Commodities Act, 1955 deals with offences by companies, and specifies that, if any person contravening an order made under Section 3 is a company, every person who, at the time the contravention was committed, was in charge of, and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the contravention. In the instant case, the company which had manufactured the subject fertilizer has not been arraigned as an accused. Hence, the company having not been arraigned as an accused, the petitioner - accused No.1 who is the retailer and the accused No.3 who is the Compliance Officer -cumChief Manager of the Zuari Agro Chemicals Ltd. Goa, cannot be held vicarious guilty along with the company as specified under

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NC: 2023:KHC:40738 CRL.P No. 7036 of 2023

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Section 10 of the Essential Commodities Act. Therefore, the continuation of the criminal proceedings will be an abuse of the process of law. Accordingly, I pass the following:

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ORDER

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i) Criminal petition is allowed.

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ii) The impugned proceeding in CC No.57/2019 pending on the file of the learned Civil Judge and JMFC, Alur, District Hassan, stands quashed.

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Sd/JUDGE

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Shri Mahesh Nayak v. A.N. Shailaja

Case brief

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Shri Mahesh Nayak v. A.N. Shailaja

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