- 1 - NC: 2025:KHC-D:329 CRL.P No. 102947 of 2024 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 9TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 102947 OF 2024 (482(Cr.PC)/528(BNSS)) BETWEEN: N.M. BASAVARAJ AGE. 64 YEARS, OCC. DEPUTY GENERAL MANAGER, M/S. SAMRTTECH TECHNOLOGIES LTD., 706, 1ST FLOOR, 9TH CROSS, 2ND STAGE, MODI HOSPITAL ROAD, MAHALAKSHMIPURAM WEST OF CARD ROAD, BENGALURU-560001. …PETITIONER (BY SRI. AVINASH A. UPLAONKAR, ADVOCATE) AND: THE STATE OF KARNATAKA DEPARTMENT OF AGRICULTURE, FERTILIZER INSPECTOR CUM AGRICULTURE OFFICER, RAITH SAMPARKA KENDRA KOUJALAGI, R/BY SPP, HIGH COURT OF KARNATAKA, DHARWAD BENCH-580011. …RESPONDENT (BY SRI. PRAVEENA Y.DEVAREDDIYAVARA, HCGP) THIS CRIMINAL PETITION IS FILED U/S 528 OF BNSS, SEEKING TO EXERCISE INHERENT POWERS U/S 482 OF CR.P.C., EXAMINE THE RECORDS AND QUASH THE TAKING COGNIZANCE IN CC NO.975/2018 DATED 17.09.2018, FOR THE OFFENCES PUNISHABLE U/CLAUSE 19 OF FERTILIZER (CONTROL) ORDER 1985 AND R/W 3 AND 7 OF ESSENTIAL COMMODITIES ACT 1955, PENDING BEFORE THE CIVIL JUDGE AND JMFC COURT AT MUDALAGI, AGAINST THE PETITIONER/ACCUSED NO.1. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE MR. JUSTICE HEMANT CHANDANGOUDAR Digitally signed by ASHPAK KASHIMSA MALAGALADINNI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.01.13 15:17:12 +0530 - 2 - NC: 2025:KHC-D:329 CRL.P No. 102947 of 2024 ORAL ORDER 1. The cognizance taken of the offence punishable under Clause 19 of the Fertilizer (Control) Order, 1985, read with Sections 3 and 7 of the Essential Commodities Act, 1955, is challenged in this petition. 2. The complaint was filed by the respondent, alleging that they visited the shop of the petitioner – accused No.1, who is the Deputy General Manager of the company. From the available stock of fertilizer (10:26:26) manufactured by Smart Chem Technologies Ltd., samples were seized and sent to the Fertilizer Analyst at the Belagavi Laboratory for analysis. The analysis report stated that the sample of the fertilizer did not conform to the prescribed standards, which is in contravention of Clause 19 of the Fertilizer (Control) Order, 1985. 3. Heard the learned counsel for the petitioners and the learned Additional Government Advocate for the respondent. 4. The petitioner is being prosecuted on the basis that they are the Deputy General Manager of Smart Chem Technologies Ltd., which manufactured the fertilizer in question. The analysis report indicated that the fertilizer manufactured by the said company did not meet the prescribed standards, allegedly violating Clause 19 of the Fertilizer (Control) Order, 1985. 5. Clause 2 of the Fertilizer (Control) Order, 1985, states that the Act refers to the Essential Commodities Act, 1955. - 3 - NC: 2025:KHC-D:329 CRL.P No. 102947 of 2024 6. Section 10 of the Essential Commodities Act, 1955, deals with offences committed by companies. It stipulates that if the person contravening an order made under Section 3 is a company, then every person who, at the time of the contravention, was in charge of and responsible for the conduct of the company’s business, as well as the company itself, shall be deemed guilty of the contravention. 7. In this case, the company that manufactured the fertilizer, Smart Chem Technologies Ltd., has not been arraigned as an accused. Accused No.1 is the Deputy General Manager of the company. However, without the company being made a party to the proceedings, the petitioner cannot be held vicariously liable under Section 10 of the Essential Commodities Act, 1955. 8. A similar issue was considered by a coordinate Bench of this Court in Crl.P. No.102568/2022 (DD 14.09.2022), wherein it was held that if the company is not arraigned as an accused, the complaint is not maintainable against the retailer or the managerial personnel of the company. Therefore, under such circumstances, the proceedings are liable to be quashed. 9. In light of the above, the continuation of the criminal proceedings against the petitioner would amount to an abuse of the process. Accordingly, I pass the following: ORDER i) The petition is allowed. - 4 - NC: 2025:KHC-D:329 CRL.P No. 102947 of 2024 ii) The impugned proceedings in CC No.975/2018 pending on the file of the learned Civil Judge and JMFC Court, Mudalagi, insofar as it relates to the petitioner – accused No.1, is hereby quashed. Sd/- (HEMANT CHANDANGOUDAR) JUDGE BKM Ct:vh List No.: 1 Sl No.: 23