THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITION No. 4737 OF 2025

ORDER

This Criminal Petition is filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘BNSS, 2023’) seeking quashment of the proceedings in Crime No.138 of 2023 of Pangal Police Station, Wanaparthy District, against the petitioner.

2. The petitioner is arrayed as accused No.3 in Crime No.138 of 2023 registered for the offences punishable under Sections 406, 420, 409, 120-B of the Indian Penal Code, 1860 (for short ‘I.P.C.’) and Section 7 of Essential Commodities Act,1955 (for short, ‘EC Act’).

3. Heard Mr. K.Rathanga Pani Reddy, learned counsel for the petitioner and Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor, representing the respondent No.1-State.

4. The prosecution case in brief is that the accused Nos.1, 2 and the petitioner/accused No.3 are family members and owners of M/s.Parameshwara Industries, Pangal Village and Mandal, Wanaparthy District, and engaged in the business of milling of paddy. The Telangana State Civil Supplies Corporation Limited (for short, ‘TGSCSCL’) entered into agreement with the petitioner’s firm for procuring and milling of paddy and to deliver back the custom milling rice. It is alleged that the TGSCSCL Department had conducted inspection in the petitioner’s rice mill on 28.12.2023 and found 418.76 MTs of paddy missing. Thus, a Police Report was lodged against the petitioner and the other accused for misappropriation of stocks and violation of the agreement and for recovery of the amounts.

5. Learned counsel for the petitioner would submit that as per the agreement, the de facto complainant, the petitioner and other accused would be in joint custody of the paddy. Further pleaded that the Government did not properly store the paddy and for natural reasons some of the quantity was damaged. Howsoever, as per the agreement, the dispute has to be placed before the Arbitrator and without such an effort, the Government on its own concluding misappropriation and initiating prosecution without any conclusive findings on relevant aspects alleging criminality is untenable. That apart, the petitioner is ready to cooperate with the investigation and is intending to see the process through. He further pointed out that the coordinate Bench of this Court vide Criminal Petition Nos.1574, 1575 of 2025, 895 and 12037 of 2024 held that Section 409 I.P.C. would not attract in the circumstances of the case and directed the investigating agency for issuance of notice under Section 41-A of the Code of Criminal Procedure and to follow the guidelines enunciated in Arnesh Kumar v.

State of Bihar, (2014) 8 SCC 273. Thus pleaded for granting similar relief to meet their hardship.

6. Learned Additional Public Prosecutor would submit that it is a clear case of misappropriation, the petitioner and similarly placed other rice millers have caused loss of crores of rupees to the state and by the direction of issuance of notice, it is becoming difficult in proceeding with the investigation for want of cooperation from the petitioner. That apart, a Coordinate Bench of this Court in Crl.P.Nos.3933 of 2024, 3305 of 2024 3306 of 2024, having considered the submissions dismissed the criminal petitions. The petitioner herein is also facing self same accusations, therefore, pending investigation proceedings, this petition has to be dismissed. Further submits that, if the Court considers otherwise, directing the petitioner for depositing considerable amount against the complaint mentioned loss, would be proper.

7. I have perused the materials on record.

8. Admittedly, the petitioner and other accused are the owners of ‘M/s.Parameshwara Rice Mill’. It is clear by the averments of the complaint that TGSCSCL Department had entered into agreement with the petitioner for carrying out milling of paddy. Further, in the complaint,

the misappropriation has been alleged. Whereas the petitioner’s plea of joint custody and the defences like