- 1 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 11TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 100431 OF 2025 (482(Cr.PC)/528(BNSS)) C/W CRIMINAL PETITION NO. 100430 OF 2025 CRIMINAL PETITION NO. 100440 OF 2025 IN CRL.P. NO.100431 OF 2025: BETWEEN: 1. ANIL KUMAR GUDISAGAR S/O. NAGARESHWAR, AGED ABOUT 42 YEARS, PARTNER OF M/S. T. V. GUDISAGAR KEMPU AGASI ROAD, NARAGUND, GADAG-582207. 2. RUDRAPPA CHIKKAHARUKNI S/O. DHARMAPPA, AGED ABOUT 42 YEARS, RESPONSIBLE PERSON OF SHRI. LAXMINARAYAN CHEMICALS AND FERTILIZERS PVT. LTD., PLOT NO.29, KIADB, RAYAPUR, DHARWAD-580009. …PETITIONERS (BY SRI. NITIN RAMESH, ADVOCATE) AND: STATE OF KARNATAKA ADDL.SPP, HIGH COURT OF KARNATAKA, DHAWAD BENCH, R/BY FERTILIZER INSPECTOR CUM ASSISTANT DIRECTOR OF AGRICULTURE, (CENTRAL), OFFICE OF THE JOINT DIRECTOR OF AGRICULTURE, GADAG-582103. …RESPONDENT (BY SRI. ASHOK T.KATTIMANI, AGA) B K MAHENDRAKUMAR Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.02.14 13:20:00 +0530 - 2 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO, QUASH THE ENTIRE PROCEEDINGS AGAINST THE ACCUSED NO.1 AND 2/PETITIONERS IN CC NO.548/2023 ARISING OUT OF PCR NO.53/2023 BEFORE THE CIVIL JUDGE AND JMFC COURT, NARAGUND, GADAG FOR OFFENCES PUNISHABLE UNDER CLAUSE 19(a)/(b) OF THE FERTILIZER CONTROL ORDER, 1985, PUNISHABLE U/S 7 OF THE ESSENTIAL COMMODITIES ACT 1955, AT ANNEXURE-A AND B. IN CRL.P. NO.100430 OF 2025: BETWEEN: 1. KRISHNA V. GUDISAGAR S/O. VISHWANATH, AGED ABOUT 38 YEARS, OWNER OF M/S. SHRI RAM TRADING COMPANY, KEMPU AGASI ROAD, NARAGUND, GADAG-582207. 2. RUDRAPPA CHKKAHARUKNI S/O. DHARMAPPA, AGED ABOUT 42 YEARS, RESPONSIBLE PERSON OF SHRI. LAXMINARAYAN CHEMICALS AND FERTILIZERS PVT. LTD., PLOT NO.29, KIADB, RAYAPUR, DHARWAD-580009. …PETITIONERS (BY SRI. NITIN RAMESH, SMT. MANASI SHARMA AND SRI. LINGESH V.KATTEMANI, ADVOCATES) AND: STATE OF KARNATAKA R/BY FERTILIZER INSPECTOR CUM ASSISTANT DIRECTOR OF AGRICULTURE, (CENTRAL), OFFICE OF THE JOINT DIRECTOR OF AGRICULTURE, GADAG-582103. …RESPONDENT (BY SRI. ASHOK T.KATTIMANI, AGA) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO QUASH THE ENTIRE PROCEEDINGS AGAINST THE ACCUSED NO.1 AND 2/PETITIONERS IN CC NO.547/2023 ARISING OUT OF PCR NO.52/2023 BEFORE THE CIVIL - 3 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 JUDGE AND JMFC COURT, NARAGUND, GADAG FOR OFFENCES PUNISHABLE UNDER CLAUSE 19(a)/(b) OF THE FERTILIZER CONTROL ORDER, 1985, PUNISHABLE U/S 7 OF THE ESSENTIAL COMMODITIES ACT 1955, AT ANNEXURE-A AND B. IN CRL.P. NO.100440 OF 2025: BETWEEN: 1. FAKIRAPPA TIRUKAPPA BHAVIKATTI AGED ABOUT 64 YEARS, PARTNER OF M/S. SHRI REVANSIDDESHWAR AGRO KENDRA, KARNATAKA KRISHI SANGHA COMPLEX, STAFF NO.8, SHIVAJI CIRCLE, SAVADATTI ROAD, DHARWAD-580001. 2. SHIVANAND BHAVIKATTI AGED ABOUT 34 YEARS, PARTNER OF M/S. SHRI REVANSIDDESHWAR AGRO KENDRA, KARNATAKA KRISHI SANGHA COMPLEX, STAFF NO.8, SHIVAJI CIRCLE, SAVADATTI ROAD, DHARWAD-580001. 3. RUDRAPPA CHIKKAHARUKNI S/O. DHARMAPPA, AGED ABOUT 42 YEARS, RESPONSIBLE PERSON OF SHRI. LAXMINARAYAN CHEMICALS AND FERTILIZERS PVT. LTD., PLOT NO.29, KIADB, RAYAPUR, DHARWAD-580009. …PETITIONERS (BY SRI. NITIN RAMESH, ADVOCATE) AND: STATE OF KARNATAKA ADDL. SPP, HIGH COURT DHARWAD, R/BY FERTILIZER INSPECTOR CUM ASSISTANT DIRECTOR OF AGRICULTURE, (CENTRAL), OFFICE OF THE JOINT DIRECTOR OF AGRICULTURE, DHARWAD-580008. …RESPONDENT (BY SRI. ASHOK T.KATTIMANI, AGA) - 4 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO QUASH THE ENTIRE PROCEEDINGS AGAINST THE ACCUSED NO.1 TO 3/PETITIONERS IN CC NO.629/2019 ARISING OUT OF PCR NO.5/2019 BEFORE THE II ADDL.CIVIL JUDGE AND JMFC-II COURT, DHARWAD, FOR OFFENCES PUNISHABLE U/S 3 R/W SECTION 7(1)A(II) OF THE ESSENTIAL COMMODITIES ACT, AT ANNEXURE-A AND B. THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. Since these petitions involve a similar issue, they are taken up together, heard, and disposed of by this common order. 2. The petitioners challenge the order passed by the learned Magistrate taking cognizance of the offence punishable under Section 7 of the Essential Commodities Act, 1955 (EC Act). 3. The respondent filed a private complaint under Section 200 of the Cr.P.C., stating that upon inspection of the petitioners’ premises, samples of fertilizers manufactured by M/s. Laxminarayan Chemicals & Fertilizers Private Limited were collected and sent for analysis. The analyst’s report indicated that the fertilizers did not conform to the prescribed specifications. 4. Heard the learned counsel for the petitioners and the learned Additional Government Advocate for the respondent/State. 5. Section 2 of the Fertilizer (Control) Order, 1985, defines the applicability of the Control Order under the EC Act. - 5 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 6. Section 10 of the EC Act pertains to offences committed by companies. It states that if a company contravenes an order made under Section 3, every person who was in charge of and responsible for the company’s business at the time of the contravention, along with the company itself, shall be deemed guilty. 7. In this case, Accused No.1 is a retailer of the subject fertilizers, and Accused No.2 is a compliance officer. As per Section 10 of the EC Act, a compliance officer responsible for regulatory adherence can be held vicariously liable along with the company. However, in the present case, the company itself has not been arrayed as an accused. 8. It is well settled that to hold an officer of a company vicariously liable under Section 10 of the EC Act, the company must be made an accused. In the absence of the company being arrayed as an accused, Accused No.2 alone cannot be held vicariously liable. 9. In view of the above, the continuation of criminal proceedings against the petitioners would amount to an abuse of the process of law. 10. Accordingly, the petitions are allowed. The impugned proceedings in: • C.C. Nos. 547 & 548 of 2023, pending before the learned Civil Judge and JMFC Court, Naragund, and - 6 - NC: 2025:KHC-D:2724 CRL.P No. 100431 of 2025 C/W CRL.P No. 100430 of 2025 CRL.P No. 100440 of 2025 • C.C. No. 629/2019, pending before the II Additional Civil Judge & JMFC-II, Dharwad, insofar as these petitioners are concerned, are hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE JTR Ct:vh List No.: 2 Sl No.: 14