A company is a distinct juristic entity; its assets, including digital data and intellectual property, are owned exclusively by the company. Shareholders and directors possess no individual proprietary interest in these assets. Allegations of unauthorized data theft and system manipulation constitute cognizable offences requiring police investigation.

CORAM: THE HON'BLE MR JUSTICE M.NAGAPRASANNA

CAV ORDER

The petitioner/sole accused is before the Court calling in question registration of a crime in Crime No.176 of 2025 registered for offences punishable under Sections 316 and 318(4) of the BNS and Sections 65 and 66 of the Information Technology Act, 2000 (hereinafter referred to as ‘the Act’ for short).

2. Heard Sri Suraj Sampath, learned counsel appearing for the petitioner, Sri B.N.Jagadeesha, learned Additional State Public Prosecutor for respondent No.1 and Sri Angad Kamath, learned counsel appearing for respondent No.2.

3. Facts adumbrated are as follows: -

3.1. A Company, M/s Plutus Research Private Limited (hereinafter referred to as ‘the Company’ for short) is engaged in the domain of quantitative trading, wherein it leverages advanced mathematical models, statistical techniques and data driven strategies to develop proprietary trading algorithms. The petitioner claims that he is one of the founding members, Directors, Promoters and share-holders in the Company, which is registered under the Companies Act, 2013 and registered before the Registrar of Companies, Gujarat having its corporate office at Bengaluru. Two other Directors along with the petitioner are founder Directors and equal shareholders, one of whom is the 2nd respondent/complainant. The petitioner further avers in the petition that in collaboration with the other two Directors he had jointly conceived and established the Company with a shared vision and mutual understanding, as all three of them were close friends at one point in time. The founding members, as noted hereinabove, are said to have contributed for formation and initial development of the Company and have equal share holding.

3.2. In the year 2018, it appears, that all the three Directors enter into identical employment agreements and were appointed/continued as Directors of the Company for remuneration. There were no formal working hours for these Directors is what is averred in the petition. In and around the month of June, 2024 disputes arose between the founder directors of the Company owning to various conflicts and disagreements among them. The other two Directors, one of whom is the complainant, are said to have tried to remove the petitioner from the control and management of the Company. Therefore, the petitioner projects himself to be a whistle blower giving out misdoings of the Company to the respective Authorities where he began to complain to the Registrar of Companies, SEBI and other regulatory organizations. When things stood thus, a complaint come to be registered by the 2nd respondent, one of the founder Directors, alleging several acts of the petitioner to have become ingredients of cheating and criminal breach of trust. Investigation ensued pursuant to the registration of complaint on 29-03-2025 in Crime No.176 of 2025. The moment the crime is registered and investigation ensued, the petitioner knocks at the doors of this Court in the subject petition.

4. A coordinate Bench of this Court grants an interim order of stay. The interim order granted by the coordinate Bench on 10-09-2025 reads as follows:

“The petitioner, who is a Director and shareholder of the company, has been charged with offences punishable under Sections 316 and 318 of the Bharatiya Nyaya Sanhita, 2023, and Sections 65 and 66 o