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2025 Supreme(Online)(KAR) 7685

HIGH COURT OF KARNATAKA
HEMANT CHANDANGOUDAR J
SHRI. MAHESH NAIK COMPLIANCE OFFICER, ZUARI AGRO CHEMICALS LTD – Appellant
Versus
SHRI. PRABHAKAR K. ITNAL FERTILIZER INSPECTOR – Respondent
CRL.P 102641 of 2024



Petitioner Advocates:M.J.PEERJADE ,Respondent Advocate:

A company must be named as an accused for its officer to be vicariously liable under the Essential Commodities Act.

Headnote:The judgment analyzes the applicability of Sections 3 and 7 of the Essential Commodities Act, 1955, in relation to the alleged offenses against the petitioner, who argued against the cognizance taken by the Magistrate. The court found that the petitioner could not be held vicariously liable as the company was not arrayed as an accused. Hence, the proceeding against the petitioner was quashed.

Table of Content
1. proceedings quashed based on legal findings. (Para 5)

ORAL ORDER

1. The petitioner/accused No.1 challenges the cognizance taken by the learned Magistrate for the offences punishable under Sections 3 and 7 of the Essential Commodities Act, 1955.

2. The respondent filed a private complaint under Section 200 of the Code of Criminal Procedure, 1973, alleging that, during an inspection of the proprietorship concern, Shri Gangamatha Fertilizers, he collected samples of fertilizers manufactured by Zuari Agro Chemicals Ltd. and sent them to the Fertilizer Control Laboratory, Belagavi. The Laboratory subsequently issued a report opining that the fertilizers manufactured by Zuari Agro Chemicals Ltd. did not meet the required specifications.

3. Heard the learned counsel for the petitioner and the learned Additional Government Advocate for the respondent/State. 4. The petitioner/accused No.1 is the Chief Manager of the company that manufactured the subject fertilizers. Section 2(a) of the Fertilizer (Control) Order, 1985, defines “Act” as the Essential Commodities Act, 1955. Section 10 of the Act specifies that, in cases where the 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, shall be deemed guilty of the contravention and shall be liable to be prosecuted and punished accordingly. Therefore, to hold an officer of a company vicariously liable under Section 10 of the Act, the company must be arrayed as an accused.

5. In the present case, as the company has not been arrayed as an accused, the petitioner cannot be held vicariously liable for the alleged offences under Sections 3 and 7 of the Essential Commodities Act, 1955. Accordingly, I pass the following:

ORDER i. Criminal Petition is allowed.

ii. The impugned proceedings in C.C. No.1010/2018 pending on the file of the Civil Judge and JMFC, Kittur insofar it relates to the petitioner-accused No.1 is hereby quashed.

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