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IN THE HIGH COURT OF KARNATAKA
KALABURAGI BENCH
DATED THIS THE 04TH DAY OF JANUARY, 2023
BEFORE
THE HON’BLE MR. JUSTICE V.SRISHANANDA
CRIMINAL PETITION NO.201580/2022
BETWEEN:
1.
AJIT @ AJEET
S/O CHANDRAKANTH DHANASHETTI
AGE: 53 YEARS, OCC: PROPRIETOR OF
M/S A.C. DHANASHETTI
TAMBA VILLAGE, TQ. INDI,
DIST. VIJAYAPURA-586215
2.
MAHAVEER S/O CHANDRAKANT DHANASHETTI
AGE: 57 YEARS, OCC: PROPRIETOR OF
M/S M. C. DHANASHETTI FERTILIZER,
MAHAVEER CIRCLE, TAMBA VILLAGE,
TQ. INDI, DIST. VIJAYAPURA-586215
3.
KAILASH PURAMWAR
S/O RAJARAM PURAMWAR
AGE: 44 YEARS, OCC: MANAGING DIRECTOR
GHATAPRABHA FERTILIZERS PVT. LTD.,
249/1, POST NANDIKURALI,
TQ. RAIBAG,
DIST. BELAGAVI-591317
… PETITIONERS
(BY SRI AVINASH A. UPLAONKAR &
SRI RAVI K. ANOOR, ADVOCATES)
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AND:
1.
THE STATE OF KARNATAKA
REPRESENTED BY ADDL. SPP
HIGH COURT OF KARNATAKA,
KALABURAGI BENCH-585107
2.
THE GOVERNMENT OF KARNATAKA
DEPARTMENT OF AGRICULTURE,
REPRESENTED BY THE
ASSISTANT AGRICULTURE DIRECTOR,
VIJAYAPURA
DIST. VIJAYAPURA-586101
… RESPONDENTS
(BY SRI GURURAJ V.HASILKAR, HCGP)
THIS CRIMINAL PETITION IS FILED UNDER SECTION
482 OF CR.P.C. PRAYING TO EXAMINE THE RECORDS AND
QUASH THE ORDER OF TAKING COGNIZANCE IN C. C.
NO.1993/2022, DATED 26.03.2022 (PRIVATE COMPLAINT
NO.28/2022), FOR THE OFFENCE U/S. 7(1)(A)(II) OF
ESSENTIAL COMMODITIES ACT 1955, PENDING BEFORE
THE CIVIL JUDGE AND JMFC COURT AT INDI, AGAINST
THE PETITIONERS.
THIS PETITION COMING ON FOR ADMISSION THIS
DAY, THE COURT MADE THE FOLLOWING HEARING:
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CRIMINAL LAW - QUASHING OF PROCEEDINGS - ESSENTIAL COMMODITIES ACT, 1955 - SECTION 10 - OFFENCES BY COMPANIES - INTERPRETATION - KEY LEGAL PROVISIONS AND THEIR INFLUENCE ON COURT'S DECISION
Fact of the Case:
The petitioners, proprietors of fertilizer shops and the Managing Director of a fertilizer manufacturing company, were summoned for offenses under Section 7(1)(a)(ii) of the Essential Commodities Act, 1955, for allegedly selling low-quality fertilizers. They challenged the cognizance order, arguing that the company was not impleaded as a party and that they were not responsible for quality control.
Finding of the Court:
The court held that the complaint was not maintainable without impleading the company as a party, as per Section 10 of the Essential Commodities Act. It further noted that the petitioners, as dealers and Managing Director, were not responsible for quality control and could not be held liable for the alleged offenses.
Issues: 1. Whether the complaint was maintainable without impleading the company as a party? 2. Whether the petitioners, as dealers and Managing Director, could be held liable for the alleged offenses?
Ratio Decidendi: The court interpreted Section 10 of the Essential Commodities Act to mean that the company manufacturing the substandard fertilizers, along with responsible directors, managers, and quality control officers, should be arraigned as accused in criminal proceedings. It held that the Managing Director alone could not be held liable.
Final Decision: The court allowed the petition and quashed the cognizance order, reserving liberty to the complainant to file an appropriate complaint in accordance with law.
Heard Sri Ravi K. Anoor, learned counsel for the
petitioner and Sri Gururaj V. Hasilkar, learned High Court
Government Pleader.
2.
The present petition is filed under Section 482
of Cr.P.C. with the following prayer :-
“To
exercise inherent powers under
Section 482 Cr.P.C. examine the records and
quash the order of taking cognizance in C.C.
No.1993/2022,
dated
26.03.2022
(private
complaint No.28/2022), for the offence under
Sections 7(1)(a)(ii) of Essential Commodities
Act, 1955, pending before the Civil Judge and
JMFC court at Indi, against the petitioners.”
3.
Though the matter is listed for admission with
the consent of the parties, the same is taken up for final
disposal.
4.
Brief facts which are necessary for disposal of
the petition are as under :
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Petitioner Nos.1 and 2 are the proprietors of M/s A.
C. Dhanashetti Fertiliser and M/s M. C. Dhanashetti
Fertiliser and petitioner No.3 is the Managing Director of
M/s Ghataprabha Fertilisers Private Limited. They have
been arraigned as accused persons in Private Complaint
No.28/2022 and cognizance was taken. They have been
summoned before the learned jurisdictional magistrate by
exercising power under Section 204 of Cr.P.C., for the
offences punishable under Sections 7(1)(a) (ii) of Essential
Commodities Act, 1955, (for short, hereinafter referred to
as ‘the EC Act’). In the private complaint, it is contended
that Sri A. C. Dhanashetti, the first petitioner was dealing
with the fertilisers. On a raid being conducted they found
that samples collected from his proprietorship concern was
of inferior quality. So also Sri M.C. Dhanashetti, the second
accused who is the proprietor of another fertiliser shop and
samples collected from his concern also were of inferior
quality. Third accused is the Managing Director of M/s.
Ghataprabha Fertilisers Private Limited and he is the one
who supplied the manure fertiliser to accused Nos.1 and 2.
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5.
The order of the learned trial judge passed on
26.03.2022 reads as under:
“Date:26.03.2022
This is a complaint filed by the complainant
State through Inspector of Fertilizer for the
offences punishable U/Sec.7(1)a) (ii) of Essential
Commodities Act, 1955 for violating U/s.19(a) and
(b) Fertilizer Control Order 1985.
The complainant is authorized to file the
complaint
by
his
appointment orders
dated:
03.10.2016. The accused No.1 is said to be
carrying on the business of sale of Fertilizers.
Accused No.2 is said to dealer in Fertilizer. Accused
No.3 is the manufacturer of Fertilizer. The Fertilizer
Inspector – complainant - Sri. A. P. Biradar is said
to has visited shop of Accused No.1 on 14.12.2019
and found that Accused No.1 is in possession of low
quality fertilizer in shop at Tamba village, Tq.Indi.
The Complainant has seized said low quality
fertilizer from the shop of accused No.1. The
complainant is a Public Officer and has filed
complaint in his official capacity. Hence, recording
of sworn statement as contemplated U/Sec.200 of
Cr.P.C. is not required in the complaint filed by the
Govt. Servant. This position of law is contemplated
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in the proviso appended to Section 200 of Cr.P.C.,
which reads as under:
"200.
Examination
of
complainant.-
A
Magistrate taking cognizance of an offence on
complaint shall examine upon oath the complainant
and the witnesses present, if any, and the
substance of such examination shall be reduced to
writing and shall be signed by the complainant and
the witnesses, and also by the Magistrate:
Provided that, when the complaint is made
in writing, the Magistrate need not examine
the complainant and the witnesses--
a) if a public servant acting or purporting to act
in the discharge of his official duties or a Court has
made the complaint; or
b) if the Magistrate makes over the case for
inquiry or trial to another Magistrate under section
192.
Provided further that if the Magistrate makes
over the case to another Magistrate under section
192 after examining the complainant and the
witnesses, the latter Magistrate need
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