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2025 Supreme(Online)(Kar) 27211

KARNATAKA HIGH COURT
M. NAGAPRASANNA, J
MR.RAHUL PANDYA – Appellant
Versus
STATE OF KARNATAKA – Respondent
CRIMINAL PETITION No.6709 OF 2024



Advocates:
For the Appellants/Petitioners: SRI SANDESH J.CHOUTA, SRI RAVI C.S.
For the Respondents: SRI B.N.JAGADEESHA, SRI RAGHAVENDRA K.

The court ruled that mere allegations of data transfer without evidence of criminal intent do not constitute a prosecutable offence, emphasizing the distinction between civil disputes and criminal charges.

Headnote:(A) Criminal Procedure Code, 1973 - Section 482 - Information Technology Act, 2000 - Sections 66, 66C, 66D, 72A - Petition quashing FIR for offences under IPC and IT Act - Allegations of transferring confidential information post-resignation deemed to reflect a civil dispute rather than criminal intent, warranting quashment - Court emphasized distinction between breach of contract and criminal offences of cheating and breach of trust, necessitating consideration of intention at the inception of the agreement. (Paras 10, 11, 12, and 13)

(B) The nature of alleged offences - Court determined that the allegations did not meet the criteria for criminal prosecution and thus found that civil remedies were appropriate for resolving the dispute, reiterating that the court should not be misused for settling employment disputes. (Para 9)

Facts of the case:
The petitioner resigned as Associate Director of a technology company and is accused of transferring proprietary information to a personal email address shortly before resigning. The police filed a 'B' report citing insufficient evidence of intent to cheat.

Findings of Court:
The court held that the case involved civil matters of contractual obligations rather than criminal wrongdoing, and hence quashed the proceedings.

Issues: The main issues involved whether the petitioner’s actions constituted criminal behaviour or a civil breach.

Ratio Decidendi: The court highlighted that proving a criminal intention at the inception of the employment contract is crucial for a cheating offence to stand. The allegations did not substantiate criminal charges as they reflected a civil nature.

Result: The petition is allowed and the FIR is quashed.

Table of Content
1. overview of the case and initial facts (Para 1 , 3)
2. arguments regarding confidentiality breach (Para 4 , 5)
3. court observations on contract versus criminal law (Para 6 , 9 , 12)
4. ratio on breach of contract and criminal intent (Para 10 , 11)
5. order to quash fir and declaration of proceedings (Para 13)

CAV ORDER

The petitioner/accused is knocking at the doors of this Court in the subject petition calling in question registration of a crime in Crime No.1145 of 2020 for offences punishable under Sections 419 and 420 of the IPC and Sections 66C, 66D and 72A of the Information Technology Act, 2000 (‘the Act’ for short).

2. Heard Sri C.S.Ravi, learned counsel appearing for the petitioner, Sri B.N. Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1 and Sri K. Raghavendra, learned counsel appearing for respondent No.2.

3. Facts, in brief, germane are as follows:-

The 2nd respondent/Samsung R & D Institute India-Bangalore Private Limited (‘the Company’ for short) is the complainant. The petitioner on completion of his Master’s in Engineering from Indian Institute of Technology, Kharagpur and securing first rank accepts offer of employment offered by the 2nd respondent/Company after an interview. He joins the Company as an Associate Director in the Commercial Modem Software Development Team. The petitioner works for about a year and on 27-04-2020 tendered his resignation. After his resignation he sent documents from his official email id for reviewing his assigned responsibilities as an employee. When no response was received even on the last date of the notice period on 29-05-2020, he leaves the Company. After exit of the petitioner from the Company comes the impugned crime registered on 24-09-2020 which becomes a crime in Crime No.1145 of 2020 for the afore-quoted offences. The police conduct investigation and file a ‘B’ report before the concerned Court. The complainant files a protest petition. The ‘B’ report is rejected and cognizance is taken for the afore-quoted offences. Taking of cognizance on rejection of ‘B’ report is what has driven the petitioner to this Court in the subject petition.

4. The learned counsel appearing for the petitioner would vehemently contend that the petitioner in the capacity of him being the Associate Director and in terms of employment agreement had access to confidentiality or confidential information. He is now alleged that he has sent confidential organizational information via 24 emails to his personal id in violation of the security policy of the complainant and the petitioner admits that he has sent all those mails. He voluntarily surrenders his laptop, and mobile phone prior to his last date of working in terms of the notice period. The learned counsel submits that the petitioner has never indulged in data thieving as is alleged and the issue which is purely a commercial dispute between the parties is sought to be dressed with a colour of crime. Therefore, the Police had rightly filed a ‘B’ report, as the issue being a dispute with regard to employment and the Court has erroneously taken cognizance of the offence. He would seek quashment of entire proceedings pending before the concerned Court.

5. Per-contra, the learned counsel appearing for the 2nd respondent/Company would contend that the Police did not conduct a proper investigation. On a shoddy investigation, they filed a ‘B’ report. The Court has rightly rejected the ‘B’ report on filing of protest petition and taken cognizance of the offence. The civil suit is instituted by the complainant to restrain the petitioner/accused from divulging any confidential information. Injunction is granted against the petitioner/accused. The petitioner also filed a counter claim which is rejected by the concerned Court. He would submit that in a given case both civil and criminal law can go hand in hand. He seeks dismissal of the petition.

6. I have given my anxious consideration to the submissions made by

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