- 1 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ CRIMINAL PETITION NO. 13864 OF 2025 C/W CRIMINAL PETITION NO. 13866 OF 2025 IN CRL.P No. 13864/2025 BETWEEN: 1. CHIEF EXECUTIVE OFFICER PRIMARY AGRICULTURAL CREDIT COOPERATIVE SOCIETY LTD., MATTIKERE, MADABAL HOBLI, TQ: MAGADI, DIST: RAMANAGARA, REPRESENTED BY MR. SURESHA M.V., AGE: 38, OCC: CHIEF EXECUTIVE OFFICER, MATTIKERE, DIST: RAMANAGARA-562 120. 2. STATE MARKETING MANAGER (IFFCO LTD.), 3RD CROSS, 3RD FLOOR, KSCMF BUILDING, CUNNINGHAM ROAD, BANGALORE-560 052, REPRESENTED BY LAKSHMISHA R., AGE: 34 YEARS, OCC: STATE MARKETING MANAGER, (IFFCO LTD), 3RD CROSS, 3RD FLOOR, KSCMF BUILDING, CUNNINGHAM ROAD, BANGALORE-560 052. …PETITIONERS (BY SRI. AVINASH A. UPLAONKAR, ADVOCATE) Digitally signed by LAKSHMI T Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 AND: THE STATE OF KARNATAKA DEPARTMENT OF AGRICULTURE, AGRICULTURE OFFICER AND FERTILIZER INSPECTOR, RAITA SAMPARKA KENDRA, MADABAL HOBLI, TQ: MAGADI, DIST: RAMANAGAR, REPRESENTED BY ADDL. SPP, HIGH COURT OF KARNATAKA, BENGALURU BENCH-560 001. …RESPONDENT (BY SRI. M.V. ANOOP KUMAR, HCGP) THIS CRL.P IS FILED U/S 482 CR.P.C (U/S 528 BNSS) PRAYING TO EXERCISE INHERENT POWERS U/S 528 OF BNSS, EXAMINE THE RECORDS AND QUASH THE ENTIRE PROCEEDINGS IN CC.NO.734/2021 (PRIVATE COMPLAINT NO.86/2021), FOR THE OFFENCES U/SEC. 19(A) OF FERTILIZER CONTROL ORDER, 1985, U/S 7(1)(a)(ii) OF ESSENTIAL COMMODITIES ACT, 1955, IS PENDING ON THE FILE OF PRINCIPAL CIVIL JUDGE AND JMFC COURT, AT MAGADI, AGAINST THE PETITIONERS. IN CRL.P NO. 13866/2025 BETWEEN: 1. CHIEF EXECUTIVE OFFICER PRIMARY AGRICULTURAL CREDIT COOPERATIVE SOCIETY LTD., CHAKRABHAVI, MADABAL HOBLI, TQ: MAGADI, DIST: RAMANAGARA, REPRESENTED BY BYRESH C.H., S/O HUCHAPPA, AGE: 45 YEARS, OCC: CHIEF EXECUTIVE OFFICER, CHAKRABHAVI, DIST: RAMANAGARA-562 120. - 3 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 2. STATE MARKETING MANAGER (IFFCO LTD.), 3RD CROSS, 3RD FLOOR, KSCMF BUILDING, CUNNINGHAM ROAD, BANGALORE-560 052, REPRESENTED BY LAKSHMISHA R., AGE: 34 YEARS, OCC: STATE MARKETING MANAGER, (IFFCO LTD), 3RD CROSS, 3RD FLOOR, KSCMF BUILDING, CUNNINGHAM ROAD, BANGALORE-560 052. …PETITIONERS (BY SRI. AVINASH A. UPLAONKAR, ADVOCATE) AND: THE STATE OF KARNATAKA DEPARTMENT OF AGRICULTURE, AGRICULTURE OFFICER AND FERTILIZER INSPECTOR, RAITA SAMPARKA KENDRA, MADABAL HOBLI, TQ: MAGADI, DIST: RAMANAGAR, REPRESENTED BY ADDL. SPP, HIGH COURT OF KARNATAKA, BENGALURU BENCH-560 001. …RESPONDENT (BY SRI. M.V. ANOOP KUMAR, HCGP) THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO EXERCISE INHERENT POWERS U/SEC.528 OF BNSS, EXAMINE THE RECORDS AND QUASH THE PROCEEDINGS IN CC.NO.735/2021 (PRIVATE COMPLAINT NO.87/2021), FOR THE OFFENCE PUNISHABLE U/S. 19(A) OF FERTILIZER CONTROL ORDER 1985 AND SECTION 7(1)(a)(ii) OF ESSENTIAL COMMODITIES ACT 1955, PENDING BEFORE THE PRINCIPAL CIVIL JUDGE AND JMFC COURT AT MAGADI, AGAINST THE PETITIONERS. - 4 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 THESE PETITIONS, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE MOHAMMAD NAWAZ ORAL ORDER The question involved and the grounds raised in both these petitions being similar, both the matters are taken up together and disposed of by this common order. 2. The agricultural officer and Fertilizer inspector, Madabal Hobli, Magadi Taluk, Ramanagara District has filed the respective complaints alleging that when the cooperative Society was inspected it was found that they were selling substandard fertilizer (Urea) which was supplied by the IFFCO (respondent No.2). 3. As per complaint averments, the seized fertilizer was sent for examination and as per the report, the fertilizer was of a substandard quality. It is alleged that the accused have committed the offence under Clause 19(A) of Fertilizer Control Order, 1985 punishable under Section 7(1)(a)(ii) of Essential Commodities Act, 1955. - 5 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 4. It is the contention of learned counsel for petitioners that when it is specifically alleged that the fertilizer supplied by IFFCO Limited was of substandard quality then, without making the company as an accused, no proceedings can be initiated against the petitioners. In support of his contention, he has relied on an order passed by this Court in Crl.P No.201037/2021 disposed on 02.09.2021 and similar orders. 5. The learned High Court of Karnataka has contended that petitioner No.1 is the Chief Executive Officer of the Cooperative Society and petitioner No.2 is the State Marketing Manager of IFFCO Limited and therefore, there is sufficient compliance. He has therefore, sought to dismiss the petitions. 6. The complaint is filed by the Agriculture Officer and Fertilizer Inspector, against the Chief Executive Officer of the Agricultural Credit Cooperative Society Limited and the State Marketing Manager of IFFCO Limited. The complaint is filed only against the Marketing Manager of - 6 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 the Company without charging the company without any liability. 7. It is relevant to refer to the order passed by this Court in Crl.P No.8291/2023 and connected matters disposed on 10.10.2023. Para 7 of the said order is extracted hereunder: “7. Section 10 of the Essential Commodities Act, 1955 deals with the offences punishable of the company, and it specifies that if a person contravening an order is a company, every person who, at the time the contravention was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, shall be deemed to be guilty of the contravention. In other words, the officer in-charge of the company can only be held vicariously guilty along with the company. 8. Admittedly, in the instant case the Company by itself is not made as an accused. The petitioners are the dealer and representative of the company. The subject fertilizer which is declared as substandard quality is - 7 - HC-KAR NC: 2025:KHC:42370 CRL.P No. 13864 of 2025 C/W CRL.P No. 13866 of 2025 manufactured by the company. Hence, the Company having not been arraigned as an accused, the petitioners namely the dealer or an officer of the Company cannot be held vicariously guilty. Therefore, the continuation of the criminal proceedings against the petitioners is an abuse of process of law. Accordingly, the following: ORDER Petitions are allowed. The entire proceedings pending against the petitioners in C.C.No.734/2021 and C.C.No.735/2021, on the file of the Court of Principal Civil Judge and JMFC Court at Magadi are quashed. Sd/- (MOHAMMAD NAWAZ) JUDGE HB List No.: 1 Sl No.: 28