- 1 - NC: 2025:KHC-D:3115 CRL.P No. 103287 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 17TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 103287 OF 2024 (482(Cr.PC)/528(BNSS)) BETWEEN: 1. UMESH KALLAPPA DESAI AGE. 30 YEARS, OCC. PROPRIETOR, SHRI. SIDDESHWAR AGRO CENTRE, R/O. H.NO.357, PETAGALLI, POST. KADOLLI, DIST. BELGAUM-591304. 2. N.M.BASAVARAJ AGE. 64 YEARS, OCC. DEPUTY GENERAL MANAGER, M/S SAMRTCHEM TECHNOLOGIES LTD., 706, 1ST FLOOR, 9TH CROSS, 2ND STAGE, MODI HOSPITAL ROAD, MAHALAXMIPURAM, WEST OF CHORD BENGALURU-560001. …PETITIONERS (BY SRI. AVINASH A.UPLAONKAR, ADVOCATE) AND: THE STATE OF KARNATAKA DEPARTMENT OF AGRICULTURE, FERTILIZER INSPECTOR CUM AGRICULTURE OFFICER, RAITA SAMPARKA KENDRA, KAKATI, R/BY SPP, HIGH COURT OF KARNATAKA, DHARWAD BENCH-580011. …RESPONDENT (BY SRI. ASHOK T.KATTIMANI, AGA) THIS CRIMINAL PETITION IS FILED U/S 482 OF CR.P.C. (528 OF BNSS), SEEKING TO, EXERCISE INHERENT POWERS U/S 482 OF CR.P.C. EXAMINE THE RECORDS AND QUASH THE TAKING COGNIZANCE CC NO.631/2018 DATED 26.07.2018, FOR THE OFFENCES PUNISHABLE FERTILIZER CONTROL ORDER, 1985 CLAUSE 19 (3 AND 7) U/S 7 (1) (A) (2) OF ESSENTIAL COMMODITIES ACT 1955, PENDING BEFORE THE JMFC IV COURT AT BELAGAVI, DIST. BELAGAVI, AGAINST THE PETITIONERS/ ACCUSED NO.1 AND 2. Digitally signed by B K MAHENDRAKUMAR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.02.19 13:15:48 +0530 - 2 - NC: 2025:KHC-D:3115 CRL.P No. 103287 of 2024 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. Learned Additional Government Advocate accepts notice for the respondent/State. 2. The petitioners challenge the order passed by the learned Magistrate taking cognizance of the offence punishable under Clause 19(3) & (7) of the Fertilizer (Control) Order, 1985, read with Section 7(1)(A)(2) of the Essential Commodities Act, 1955 (EC Act). 3. The respondent filed a private complaint under Section 200 of the Cr.P.C., alleging that during an inspection of the petitioners’ premises, samples of fertilizers manufactured by M/s. Smart Chem Technologies Limited were collected and sent for analysis. The analyst’s report indicated that the subject fertilizers were of sub-standard quality. 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. 6. Section 10 of the EC Act pertains to offences committed by companies. It stipulates 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 - 3 - NC: 2025:KHC-D:3115 CRL.P No. 103287 of 2024 time of the contravention, along with the company itself, shall be deemed guilty. 7. In the present case, Accused No. 1 is a retailer of the subject fertilizers, and Accused No. 2 is a Deputy General Manager. Under Section 10 of the EC Act, a compliance officer responsible for regulatory adherence can be held vicariously liable along with the company. However, in this 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 first be made an accused. In the absence of the company being arrayed as an accused, the petitioners 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 petition is allowed. The impugned proceedings in C.C. No. 631 of 2018, pending before the learned JMFC-IV Court, Belagavi, insofar as they relate to petitioners/Accused Nos. 1 and 2, are hereby quashed. Ordered accordingly. Sd/- (HEMANT CHANDANGOUDAR) JUDGE JTR Ct:vh/List No.: 1 Sl No.: 7