The court established that for prosecution under the Essential Commodities Act, the company must be included as an accused, and procedural violations causing prejudice to the accused render the proceedings invalid.

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

1. The petitioners are before this Court calling in question the proceedings in C.C. No.1200/2022 registered for the offence punishable under Section 7(1)(a) (i and ii) of the Essential Commodities Act, 1955 .

2. Learned counsel for the petitioners submits that the issue in the lis stands covered by the judgment rendered by this Court in the case of Rafel Del Rio, Managing Director, Syngenta India Limited Vs. the State of Karnataka in Crl.P.No.102512/2021 disposed off on 8^th February 2022, wherein the identical issues have been raised and have been answered in favour of the petitioner therein. This Court has held as follows:

“9. I have given my anxious consideration to the submissions made by the learned senior counsel and the learned High Court Government Pleader and have perused the material on record. In furtherance whereof, the following points arise for my consideration:

(i) Whether the complaint was maintainable without the Company being made an accused in the proceedings?

(ii) Whether the entire proceedings get vitiated on account of prejudice and violation of Section 16 of the Act?

10. Point No.(i): Whether the complaint was maintainable without the Company being made an accused in the proceedings?

11. It is not in dispute that the petitioner is the Managing Director of Syngenta India Limited which is a Company registered under the Companies Act, 1956. The entire proceedings are initiated for offences punishable under Sections 6 (a) and 19(a) of the Act. Sections 6 and 19 and 21 of the Act read as follows:

“6. The Central Government may, after consultation of the Committee and by notification in the Official Gazette, specify –

(a) the minimum limits of germination and purity with respect to any seed of any notified kind or variety:

(b) the mark or label to indicate that such seed conforms to the minimum limits of germination and purity specified under clause (a) and the particulars which marks or label may contain.

… … …

19. Penalty.—If any person—

(a) contravenes any provision of this Act or any rule made thereunder; or

(b) prevents a Seed Inspector from taking sample under this Act; or

(c) prevents a Seed Inspector from exercising any other power conferred on him by or under this Act, he shall, on conviction, be punishable—

(i) for the first offence with fine which may extend to five hundred rupees, and

(ii) in the event of such person having been previously convicted of an offence under this section, with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

… … ….

21. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence 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 offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge and that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. – For the purpose of this section,-

(a) “company” means any body corporate and includes a firm or other association of individuals; and

(b) “director”, in relation to a firm, means a partner in the firm.”

Section 6 deals wit