Allowed

M/S Smart Office v. the State

Karnataka HC15 Mar 2024CRL.P/3108/2018

Case brief

AI extract

What is this about?

Petitioners sought quashing of an FIR alleging software misuse under cheating, IT Act and Copyright Act provisions. A civil suit over ownership of the same software had been settled with respondents conceding petitioners' ownership, making the allegations essentially civil; the court quashed the FIR and charge sheet.

What did the court decide?

FIR Crime No.40/2018 and charge sheet C.C.No.16665/2023 pending before I Additional ACMM, Bengaluru quashed.

M/S Smart Office Vs the State — Intellectual Property | Karnataka HC (2024)

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1 - NC: 2024:KHC:10917 CRL.P No. 3108 of 2018

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF MARCH, 2024

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BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ CRIMINAL PETITION NO. 3108 OF 2018

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BETWEEN:

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M/S SMART OFFICE PAYROLL AND BIOMETRICS SOLUTIONS PVT. LTD., MR. SUMIT JAIN, S/O DALPAT JAIN, AGED ABOUT 37 YEARS, HAVING ITS REGISTERED OFFICE AT NO.642, 2ND FLOOR, RAJKAR CONSULTANCY SERVICES, JANARDHAN TOWERS, JP NAGAR VII PHASE, BANGALORE - 560 078.

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Digitally signed by NARAYANAPPA LAKSHMAMMA Location: HIGH COURT OF KARNATAKA

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MR. SUMIT JAIN, S/O DALPAT RAJ JAIN, AGED ABOUT 32 YEARS, HAVING ITS REGISTERED OFFICE AT NO.642, 2ND FLOOR, RAIKAR CONSULTANCY SERVICES, JANARDHAN TOWERS, JP NAGAR, VII PHASE, BANGALORE - 560 078.

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MR. NEETU JAIN, W/O SUMIT JAIN, AGED ABOUT 31 YEARS, R/AT NO.642, 2ND FLOOR, RAIKAR CONSULTANCY SERVICES, JANARDHAN TOWERS, JP NAGAR VII PHASE, BANGALORE - 560 078. DIRECTOR, M/S SMART OFFICE PAYROLL AND

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NC: 2024:KHC:10917 CRL.P No. 3108 of 2018

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BIOMETRICS SOLUTIONS PVT. LTD.,

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…PETITIONERS

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(BY SRI. VARDHAMAN V GUNJAL, ADVOCATE)

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AND:

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THE STATE BY JP NAGAR POLICE, J P NAGAR, BANGALORE, BY SPP, HIGH COURT OF KARNATAKA, BENGALURU - 01.

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ENTERPRISE SOFTWARE SOLUTION LAB PRIVATE LIMITED (ESSL), REPRESENTED BY ITS DIRECTOR, MR BHARATH KUMAR, AGED ABOUT 40 YEARS, S/O AMEER CHAND SHAH, HAVING ITS REGISTERED OFFICE AT NO.24, 23 MAIN, MARENAHALLI, JP NAGAR, II PHASE, BANGALORE - 560 078.

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…RESPONDENTS

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(BY SRI. CHANNAPPA ERAPPA, HCGP FOR R1; SRI. S. VIVEKANANDA, ADVOCATE FOR R2)

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THIS CRL.P IS FILED U/S.482 OF CR.P.C PRAYING TO QUASH

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THE FIR REGISTERED AS CR.NO.40/2018 BY THE JAYAPRAKASH NAGAR P.S., BANGALORE AND THE PROCEEDINGS INITIATED BY THE COURT OF THE I A.C.M.M., BANGALORE U/S 420 OF IPC AND SEC.66(C), 66(D) OF I.T ACT AND SEC.63 OF COPY RIGHT ACT.

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

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ORDER

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The petitioners are before this Court seeking for the

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following reliefs:

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3 - NC: 2024:KHC:10917 CRL.P No. 3108 of 2018

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"Wherefore, the above named accused most humbly prays that this Hon'ble court may kindly be pleased to quash the FIR registered Crime No. 40/2018 by the Jayaprakash Nagar police station bengaluru and the proceedings initiated by the Court of the 1^st Additional ACMM Bangalore under Sec.420 of the IPC and u/s 66(C), 66(D)of IT Act and u/s 63 of copy right act in the interest of justice."

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Respondent No.2 lodged an FIR which came to be registered in Crime No.40/2018 by the Jayprakash nAGAR Police Station for the offences punishable under Section 420 of the IPC read with Section 66(C) and 66(D) of Information Technology Act, 2000 and Section 63 of the Copy Right Act, 1957 (for short 'Copy Right Act').

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The allegation made in the said complaint was that respondent No.2 has created software which is now being used by the petitioners and as such, there is a violation of the above provisions and it is in that background that action was requested to be initiated under the Copy Right Act.

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The petitioners have also filed a suit in O.S.No.2731/2018 against the respondents and its officers for declaration that it is the owner of the subject software in the said suit. The matter having been referred to mediation, the

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4 - NC: 2024:KHC:10917 CRL.P No. 3108 of 2018

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parties have entered into a settlement on 03.04.2021 where under the defendants have confirmed the ownership of the plaintiffs as regards the said software and that the defendants would not have any claim on the said software.

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That being so, the allegation which had been made in the complaint that the software developed by respondent No.2 had been unauthorizedly used by the petitioners would not stand. The offences alleged are essentially civil in nature, in view of a commercial dispute between the parties. As such, I am of the considered opinion that, both in law as also in facts, taking into consideration the settlement arrived between the parties, the criminal proceedings cannot go on. As such, I pass the following:

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:: ORDER ::

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i) The criminal petition is allowed.

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ii) The FIR in Crime No.40/2018 registered by the Jayaprakash Nagara Police Station, Bengaluru for the offence punishable under Section 420 of the IPC read with Section 66(C) and 66(D) of

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5 - NC: 2024:KHC:10917 CRL.P No. 3108 of 2018

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Information Technology Act, 2000 and Section 63 of the Copy Right Act, 1957 pending on the file of the I Additional ACMM, Bengaluru as also the charge sheet bearing C.C.No.16665/2023 are hereby quashed.

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iii) In view of dismissal of the main petition, I.A.No.2/2024 does not survive for consideration and the same stands disposed of.

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Sd/JUDGE

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GJM List No.: 1 Sl No.: 3 CT: BHK

M/S Smart Office v. the State

Case brief

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What did the court decide?

M/S Smart Office v. the State

Case brief

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What did the court decide?

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