Shri. Bhimappa Magadum Vs the State of Karnataka — Karnataka HC (2025) — LawSathi Research

Shri. Bhimappa Magadum Vs the State of Karnataka — Karnataka HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

The impugned proceedings in CC No.734/2018 on the file of the Principal Civil Judge and JMFC, Gokak are quashed in so far as Petitioners Nos.1 and 2/Accused Nos.1 and 2; pending applications, if any, disposed of as not surviving for consideration.

Issue for consideration

Whether Accused Nos.1 and 2 (the retailer and the Zonal Manager) can be held vicariously liable under Section 10 of the Essential Commodities Act, 1955 when the company that manufactured the fertilizers has not been arrayed as an accused. +1 more

Court's answer

Since the company that manufactured the fertilizers in question has not been arrayed as an accused, without the company being made a party, accused No.1 (the retailer) and accused No.2 (the Zonal Manager) cannot be held vicariously liable under Section 10 of the Act, 1955.

Ratio / Principle

The continuation of criminal proceedings against the petitioners would amount to an abuse of the process of law; accordingly the petition is allowed and the impugned proceedings in CC No.734/2018 are quashed.

Detailed headnote1 paragraphs

Karnataka High Court (Dharwad Bench), CRL.P No. 100314 of 2025, decided 28.01.2025 by Hemant Chandangoudar J. Criminal petition under S.482 Cr.P.C. (S.528 BNSS) by Accused No.1 (owner/manager of the Coromandel International Limited retail firm, Gokak) and Accused No.2 (Zonal Manager of Coromandel International Limited) seeking quashing of the private complaint dated 10.04.2018 (Annexure-A), the order taking cognizance and summons dated 10.04.2018 (Annexure-B), and the entire proceedings in CC No.734/2018 (Prl. Civil Judge & JMFC, Gokak) for offences under Ss.3 and 7, Essential Commodities Act, 1955, founded on an analyst report that fertilizer samples drawn from accused No.1's premises did not conform to prescribed specifications under the Fertilizer (Inorganic, Organic, or Mixed) Control Order, 1985. Held: the company that manufactured the fertilizers was not arrayed as an accused; without the company being made a party, Accused Nos.1 and 2 cannot be held vicariously liable under S.10 of the Act, 1955 (offences by companies); continuation of the proceedings would amount to abuse of the process of law. Petition allowed; proceedings in CC No.734/2018 quashed.

1 - NC: 2025:KHC-D:1607 CRL.P No. 100314 of 2025

IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 28^TH DAY OF JANUARY, 2025 BEFORE

THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 100314 OF 2025 (482(Cr.PC)/528(BNSS))

BETWEEN:

SHRI. BHIMAPPA MAGADUM AGE. 32 YEARS, OCC. OWNER OF THE FIRM AND MANAGER, COROMANDEL INTERNATIONAL LIMITED, (GROMOR CENTRE GOKAK), GOKAK-591307, TQ. GOKAK, DIST. BELAGAVI.

SHRI. N.CHANDRASHEKAR AGE. 57 YEARS, OCC. ZONAL MANAGER, CORAMANDAL INTERNATIONAL LIMITED, COROMANDEL HOUSE, SARDAR PATEL ROAD, SECURNDERABAD-500003.

…PETITIONERS

(BY SRI. J. BASAVARAJ AND SRI. SUHAS K.HOSAMANI, ADVOCATES)

AND:

THE STATE OF KARNATAKA R/BY ITS STATE PUBLIC PROSECUTOR, THROUGH THE SEED INSPECTOR AND

Digitally signed by B K MAHENDRAKUMAR B K Location: HIGH MAHENDRAKUMAR COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.30 11:52:42 +0530

AGRICULTURE OFFICER,

RAIT SAMPRAK KENDRA GOKAK, O/O. THE ASSISTANT DIRECTOR OF AGRICULTURE, HIGH COURT OF KARNATAKA, DHARWAD-580011.

…RESPONDENT

(BY SRI. ASHOK T.KATTIMANI, ADDL. GOVT. ADVOCATE)

THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO, IMPUGNED PRIVATE COMPLAINT DATED 10.04.2018 AS PER ANNEXURE-A, THE ORDER OF TAKING COGNIZANCE AND ISSUANCE OF SUMMONS DATED 10.04.2018 AS PER ANNEXURE-B FOR THE OFFENCES PUNISHABLE U/S 3 AND 7 OF ESSENTIAL COMMODITIES ACT 1955 PASSED IN CC NO.734/2018 AND ENTIRE PROCEEDINGS PURSUANT THERETO, PENDING ON THE FILE OF THE PRL.CIVIL JUDGE AND JMFC, GOKAK, BELAGAVI DISTRICT, IN SO FAR AS PETITIONERS NO.1 AND 2/ACCUSED NO.1 AND 2.

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NC: 2025:KHC-D:1607 CRL.P No. 100314 of 2025

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR

ORAL ORDER

The learned Additional Government Advocate (AGA) accepts notice for the respondent/State.

The respondent filed a private complaint under Section 200 of the Code of Criminal Procedure (CrPC), alleging that during an inspection of the premises of accused No.1, a retailer of fertilizers manufactured by Coromandel International Limited, Gromor Center, Gokak, samples of fertilizers were drawn and sent to the analyst for examination. The analyst submitted a report stating that the fertilizers did not conform to the prescribed specifications. Based on the complaint, the learned Magistrate took cognizance of the offences punishable under Sections 3 and 7 of the Essential Commodities Act, 1955 (hereinafter referred to as “the Act, 1955”).

Heard the learned counsel for the petitioners and the learned AGA for the respondent/State.

The provisions of the Act, 1955 are applicable to the Fertilizer (Inorganic, Organic, or Mixed) Control Order, 1985. Section 10 of the Act, 1955, which deals with offences by companies, provides that when a person contravening an order made under Section 3 is a company, every person who, at the time of the contravention, was in charge of and responsible for the conduct of the company’s business, as well as the company itself,

3 - NC: 2025:KHC-D:1607 CRL.P No. 100314 of 2025

shall be deemed guilty of the contravention and shall be liable to be prosecuted and punished accordingly.

In the instant case, the company that manufactured the fertilizers in question has not been arrayed as an accused. Without the company being made a party, accused No.1 (the retailer) and accused No.2 (the Zonal Manager of the company) cannot be held vicariously liable under Section 10 of the Act, 1955.

Therefore, the continuation of criminal proceedings against the petitioners would amount to an abuse of the process of law. Accordingly, the petition is allowed.

The impugned proceedings in CC No.734/2018, on the file of the learned Principal Civil Judge and JMFC, Gokak, are hereby quashed.

Pending applications, if any, are disposed of as not surviving for consideration.

Sd/(HEMANT CHANDANGOUDAR) JUDGE

JTR Ct:vh List No.: 1 Sl No.: 31