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2023 Supreme(Online)(KAR) 22950
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 03RD DAY OF JANUARY, 2023
BEFORE
THE HON'BLE MR. JUSTICE M. NAGAPRASANNA
WRIT PETITION No.11774 OF 2021(GM – RES)
BETWEEN:
MR.ARUN NARAYANAN
AGED ABOUT 53 YEARS
S/O MR. KUTTAPPA KURUP
HAVING ITS ADDRESS AT
SEA FACING BLOCK, 4TH FLOOR
BHAVANI, TECHNO PARK CAMPUS
KARIYAVATTOM, TRIVANDRUM
KERALA - 695 581.
... PETITIONER
(BY SRI C.V.NAGESH, SR.ADVOCATE A/W
SRI NIKHILESH RAO M., ADVOCATE)
AND:
1.
STATE OF KARNATAKA
BY SOUTH CEN CRIME POLICE STATION,
BANASHANKARI, BENGALURU.
2.
TE CONSULTING (INDIA) PRIVATE LIMITED
A COMPANY REGISTERED UNDER
THE PROVISIONS OF
THE COMPANIES ACT, 2013
HAVING ITS REGISTERED OFFICE AT
15, 15TH CROSS ROAD,
MG LAYOUT, JP NAGAR 6TH PHASE,
2
BENGALURU – 560 078.
REPRESENTED BY
MR.SOMANNA CHENDIRA
MANDANNA AND
MR. SHOUVIK BHATTACHARYA.
3.
THIRD EYE INC.
A COMPANY REGISTERED UNDER
THE LAWS OF THE UNITED STATES
OF AMERICA
HAVING ITS HEAD OFFICE AT
15950, DALLAS PARKWAY
SUITE 400, DALLAS
TX 75248, UNITED STATES
ALSO HAVING ITS LOCAL OFFICE AT
15, 15TH CROSS ROAD
MG LAYOUT, J.P.NAGAR
6TH PHASE,
BENGALURU - 560 078
REPRESENTED BY
MR. SOMANNA CHENDIRA MANDANNA
AND MR. SHOUVIK BHATTACHARYA.
(DELETED VIDE ORDER DATED 26.05.2022)
... RESPONDENTS
(BY SMT.K.P.YASHODHA, HCGP FOR R1)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 482 OF
CR.P.C., PRAYING TO CALL FOR THE RECORDS IN CRIMINAL
COMPLAINT BEARING CRIME NO.0056/2021 PENDING BEFORE THE
I ADDITIONAL CHIEF METROPOLITAN JUDGE BENGALURU; QUASH
THE
CRIMINAL
COMPLAINT
BEARING
CRIME
NO.0056/2021
PENDING BEFORE THE I ADDITIONAL CHIEF METROPOLITAN JUDGE
BENGALURU (AT ANNEXUER-A) AND ETC.,
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THIS WRIT PETITION HAVING BEEN HEARD AND RESERVED
FOR ORDERS, COMING ON FOR PRONOUNCEMENT THIS DAY, THE
COURT MADE THE FOLLOWING:-
A criminal complaint cannot be registered after the complainant has filed a civil suit. A criminal complaint that is manifestly attended with mala fide and instituted with an ulterior motive can be quashed.
Headnote:
CRIMINAL LAW - QUASHING OF FIR - SECTION 482 CR.P.C. - [WYETH LIMITED V. STATE OF BIHAR] - Complaint does not disclose any cognizable offence - FIR registered after complainant filed civil suit - Criminal complaint is manifestly attended with mala fide and instituted with an ulterior motive - FIR quashed.
Fact of the Case:
The petitioner is before the Court challenging the registration of a crime for offences punishable under Sections 419 and 420 of the IPC and Sections 65 and 66 of the Information Technology Act, 2008. The petitioner is an employee of US Technology International Private Limited, a company that is incorporated under the laws of India. The petitioner claims to be working in the said Company since 2000. The 2nd respondent/TE Consulting (India) Private Limited is the complainant and a part of Third Eye Inc. group of companies controlled and promoted by the 2nd respondent. Accused Nos.1 and 2 - companies enter into transactions for providing staffing services to, and from the Third Eye Incorporation – complainant, outside India and inside India respectively. Between June, 2013 and end of 2018, Third Eye Incorporation appears to have defaulted in various payments for the services provided by accused No.1 outside India. Between August, 2015 and August, 2017 accused No.2 had deputed various employees in India to the complainant and it appears that on deputation of such human resources, it raised invoices upon the complainant totally amounting to Rs.10,28,41,345.67. It is contended that the complainant did not pay accused No.2 - company. Therefore, the complainant is, as allegedly defaulted in payment both to accused No.1 and accused No.2. Based upon the aforesaid contract between the parties and the claim, accused No.1 instituted arbitration proceedings on 18-09-2020 in California, a State in United States of America against Third Eye Incorporation for non-payment of invoice dues towards services rendered by accused No.1 to the complainant outside India. In the same way accused No.2 filed a Pre-Institution Mediation Application in India in terms of Commercial Courts Act, 2015 against the complainant seeking recovery of monetary dues totally amounting to Rs.17 + crores towards providing human resource services in India. Third Eye Incorporation files its answering statement cum-counter claim before the Arbitrator in the U.S.A. and later, made belated allegations against accused No.1 along with accused Nos.4 to 13 alleging that they had diverted confidential information of customers and caused losses to Third Eye Inc. Between 12-11-2020 and 18-02-2021, multiple mediation sessions were held for several months between the complainant and accused No.2. During the pendency of these proceedings, the complainant registers a complaint on 11.02.2021 before the South CEN Crime Police Station, Bengaluru, alleging that the Third Eye’s confidential information was stolen by accused Nos.1 and 2 between 03.10.2014 and 05.10.2020. It is alleged that the petitioner got to know of it only shortly before the complaint came to be registered on 11-02-2021. This becomes a crime in Crime No.56 of 2021 for offences punishable under Sections 419 and 420 of the IPC read with Section 65 and 66 of the Act. The petitioner is made accused No.3.
Finding of the Court:
The complaint does not disclose any cognizable offence. The FIR was registered after the complainant filed a civil suit. The criminal complaint is manifestly attended with mala fide and instituted with an ulterior motive. Therefore, the FIR is quashed.
Issues: Whether the complaint discloses any cognizable offence?
Ratio Decidendi: In the instant case, the complaint does not disclose any cognizable offence. The FIR was registered after the complainant filed a civil suit. The criminal complaint is manifestly attended with mala fide and instituted with an ulterior motive. Therefore, the FIR is quashed.
Final Decision: The writ petition is allowed. The FIR in Crime No.56 of 2021 registered by South CEN Crime Police Station, Bangalore and pending before the I Additional Chief Metropolitan Magistrate, Bangalore, stands quashed qua the petitioner.
The petitioner is before this Court calling in question
registration of crime in Crime No.56 of 2021 for offences punishable
under Sections 419 and 420 of the IPC and Sections 65 and 66 of
the Information Technology Act, 2008 (‘the Act’ for short), pending
before the I Additional Chief Metropolitan Magistrate, Bangalore.
2. Heard Sri C.V.Nagesh, learned senior counsel appearing for
the
petitioner
and
Sri
K.P.Yashodha,
learned
High
Court
Government Pleader appearing for respondent No.1.
3. Brief facts that lead the petitioner to this Court in the
subject writ petition, as borne out from the pleadings, are as
follows:-
The petitioner avers that he is a senior employee of US
Technology International Private Limited (‘the Company’ for short),
a company that is incorporated under the laws of India on 12th
April, 2005. He claims to be working in the said Company since
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2000 and has produced certain salary slips from April, 2014 to
November, 2020, to demonstrate his relationship with the Company
of being an employee. It appears that the name of the Company is
changed from ‘U.S.Software Resources Private Limited’ to ‘U.S.
Technology International Private Limited’ (‘the Company’ for short)
in terms of the fresh certificate of incorporation dated 12.04.2005.
The company was only one of the constituents of US Technology
Group, which comprises of several other companies such as
accused Nos.1 and 2 i.e., UST Global Incorporation and US
Technology Resources Private Limited.
4. The 2nd respondent/TE Consulting (India) Private Limited is
the complainant and a part of Third Eye Inc. group of companies
controlled and promoted by the 2nd respondent. Accused Nos.1 and
2 - companies enter into transactions for providing staffing services
to, and from the Third Eye Incorporation – complainant, outside
India and inside India respectively. Therefore, it is a transaction
between accused Nos.1 and 2 and the complainant. Between the
month of June, 2013 and end of 2018, Third Eye Incorporation
appears to have defaulted in various payments for the services
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provided by accused No.1 outside India. Between August, 2015
and August, 2017 accused No.2 had deputed various employees in
India to the complainant and it appears that on deputation of such
human resources, it raised invoices upon the complainant totally
amounting to Rs.10,28,41,345.67. It is contended that the
complainant did not pay accused No.2 - company. Therefore, the
complainant is, as allegedly defaulted in payment both to accused
No.1 and accused No.2. Based upon the aforesaid contract between
the parties and the claim, accused No.1 instituted arbitration
proceedings on 18-09-2020 in California, a State in United States of
America against Third Eye Incorporation for non-payment of invoice
dues towards services rendered by accused No.1 to the complainant
- Company outside India. In the same way accused No.2 filed a
Pre-Institution
Mediation
Application
in
India
in
terms
of
Commercial Courts Act, 2015 against the complainant seeking
recovery of monetary dues totally amounting to Rs.17 + crores
towards providing human resource services in India. Third Eye
Incorporation files its answering statement cum-counter claim
before the Arbitrator in the U.S.A. and later, made belated
allegations against accused No.1 along with accused Nos.4 to 13
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alleging that they had diverted confidential information of
customers and caused losses to Third Eye Inc. Between
12-11-2020 and 18-02-2021, multiple mediation sessions were held
for several months between the complainant and accused No.2.
During the pendency of these proceedings, the complainant
registers a complaint on 11.02.2021 before the South CEN Crime
Police Station, Bengaluru, alleging that the Third Eye’s confidential
information was stolen by accused Nos.1 and 2 between
03.10.2014 and 05.10.2020. It is alleged that the petitioner got to
know of it only shortly before the complaint came to be registered
on 11-02-2
