- 1 - NC: 2025:KHC-D:1415 CRL.P No. 102316 of 2024 C/W CRL.P No. 102293 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 24TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 102316 OF 2024 (482(Cr.PC)/528(BNSS)) C/W CRIMINAL PETITION NO. 102293 OF 2024 IN CRL.P. NO.102316 OF 2024: BETWEEN: 1. D. NANDINI W/O. D. SUNIL AGE. 26 YEARS, OCC. HOUSEWIFE, R/O. 3RD CROSS, SL CHOWK HOSAPETE, DISTRICT. BALLARI. 2. D. SUNIL S/O. D. SUBBANNA AGE. 32 YEARS, OCC. BUSINESSMAN, R/O. 3RD CROSS, PATEL SL CHOWK, HOSAPETE, DISTRICT. BALLARI. …PETITIONERS (BY SRI. SRINIVAS B. NAIK, ADVOCATE) AND: THE STATE OF KARNATAKA THROUGH TOWN PS, HOSAPETE, DISTRICT BALLARI, REP BY SPP, HIGH COURT OF KARNATAKA, DHARWAD BENCH-580011. …RESPONDENT (BY SRI. T. HANUMAREDDY, ADDL. GOVT. ADVOCATE) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C., (U/SEC. 528 OF BNSS, 2023) SEEKING TO, QUASH THE IN CC NO.70/2021 ON THE FILE OF PRL.CIVIL JUDGE AND JMFC HOSAPETE (FIR REGISTERED IN CRIME NO.58/2020 OF HOSAPETE TOWN POLICE STATION) FOR THE OFFENCE PUNISHABLE U/S 3, 6 (a) AND 7 OF ESSENTIAL COMMODITIES ACT, 3(2)(i), 4, 5, 7 (1)(a)(i), 8, 9 OF KARNATAKA ESSENTIAL COMMODITIES (STORAGE ACCOUNTS MAINTAINING VALUE NOTIFICATION) ORDER 1981, SECTION 3,4,12,18,19 OF KARNATAKA ESSENTIAL COMMODITIES Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.28 15:15:54 +0530 - 2 - NC: 2025:KHC-D:1415 CRL.P No. 102316 of 2024 C/W CRL.P No. 102293 of 2024 PUBLIC DISTRIBUTION SYSTEM PUBLIC CONTROL ORDER AND UNDER SECTION 120(B), 420 OF IPC IN SO FAR AS PETITIONER/ACCUSED NO. 1 AND 2 ARE CONCERNED. IN CRL.P. NO.102293 OF 2024: BETWEEN: 1. SUNIL D. S/O. D. SUBASH AGE. 34 YEARS, OCC. SELF EMPLOYED, R/O. RANIPET, OPP. SVK BUS STAND NETHAJI CCS SHOP WARD NO. HOSPETE, DIST. BALLARI. 2. SUBASH D. S/O. D. SUBBANNA AGE. 60 YEARS, R/O. PRESENT RANIPET OPP SVK BUS STAND NETHAJI CCS SHOP, WARD NO. HOSPETE, DIST. BALLARI. …PETITIONERS (BY SRI. SRINIVAS B.NAIK, ADVOCATE) AND: THE STATE OF KARNATAKA THROUGH TOWN PS, HOSAPETE, DISTRICT. BALLARI, REP BY SPP, HIGH COURT OF KARNATAKA, DHARWAD BENCH-580011. …RESPONDENT (BY SRI. T. HANUMAREDDY, ADDL. GOVT. ADVOCATE) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C., SEEKING TO QUASH THE IN CC NO.118/2021 ON THE FILE OF PRL.CIVIL JUDGE AND JMFC HOSAPETE (FIR REGISTERED IN CRIME NO.59/2020 OF HOSAPETE TOWN POLICE STATION) FOR THE OFFENCES P/U/SEC. 3, 6(A) AND 7 OF THE ESSENTIAL COMMODITIES ACT, 3(2)(i), 8 OF KARNATAKA ESSENTIAL COMMODITIES (STORAGE ACCOUNTS MAINTAINING VALUE NOTIFICATION) ORDER 1981 SEC. 3, 14, 12, 18 OF KARNATAKA ESSENTIAL COMMODITIES PUBLIC DISTRIBUTION SYSTEM PUBLIC CONTROL ORDER AND U/SEC. 120(B), 420, 477 OF IPC. - 3 - NC: 2025:KHC-D:1415 CRL.P No. 102316 of 2024 C/W CRL.P No. 102293 of 2024 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. The petitioners are sought to be prosecuted for offences punishable under Sections 3, 6(a), and 7 of the Essential Commodities Act, Sections 3(2)(i), 4, 5, 7(1)(a)(i), 8, and 9 of the Karnataka Essential Commodities (Storage Accounts Maintenance and Value Notification) Order, 1981, Sections 3, 4, 12, 18, and 19 of the Karnataka Essential Commodities Public Distribution System (Control) Order, and under Sections 120(B), 477, and 420 of the Indian Penal Code (for short, ‘the IPC’). The petitioners are before this Court challenging the said prosecution. 2. The case of the prosecution is that, upon receiving credible information, a raid was conducted on the premises of the Shankar Co-operative Society. After verifying the books of accounts, it was found that there was a shortfall in the food grains supplied by the Government of Karnataka and the Central Government. Upon enquiry, the petitioners did not provide satisfactory explanations. It is alleged that the petitioners illegally sold the food grains meant for distribution under the Public Distribution System (PDS) and thereby cheated the public at large. 3. The petitioners/accused herein are the President and Secretaries of the Society. As per Section 10 of the Essential Commodities Act, any person who, at the time the contravention - 4 - NC: 2025:KHC-D:1415 CRL.P No. 102316 of 2024 C/W CRL.P No. 102293 of 2024 was committed, was in charge of and responsible for the conduct of the business of the company, as well as the company itself, shall be held vicariously guilty. 4. Explanation No.1: For the purposes of this section, “company” means any body corporate and includes a firm or other association of individuals. 5. A Co-operative Society is considered a body corporate. The issue of whether the office bearers of a Society can be held vicariously liable in the absence of the Society being arraigned as an accused was examined by a Co-ordinate Bench of this Court in Crl.P. No.103878/2023, disposed of on 11.10.2023, wherein it was held that prosecution cannot proceed in the absence of the Society being arraigned as an additional accused. 6. In light of the above, the present petition is required to be disposed of in terms of the order passed in the aforesaid petition. ORDER i) The petitions are allowed. ii) The impugned proceedings in CC No.70/2021 pending on the file of the Prl. Civil Judge and JMFC, Hosapete, insofar as it relates to the petitioner – accused Nos.1 and 2 stands quashed - 5 - NC: 2025:KHC-D:1415 CRL.P No. 102316 of 2024 C/W CRL.P No. 102293 of 2024 iii) The impugned proceedings in CC No.118/2021 pending on the file of the Prl. Civil Judge and JMFC, Hosapete, insofar as it relates to the petitioner – accused Nos.1 and 2 stands quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE AC Ct:vh List No.: 3 Sl No.: 1